Birlasoft Valuation

Is BSOFT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BSOFT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BSOFT (₹577) is trading above our estimate of fair value (₹281.87)

Significantly Below Fair Value: BSOFT is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for BSOFT?

Key metric: As BSOFT is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for BSOFT. This is calculated by dividing BSOFT's market cap by their current earnings.
What is BSOFT's PE Ratio?
PE Ratio25.8x
Earnings₹6.19b
Market Cap₹159.57b

Price to Earnings Ratio vs Peers

How does BSOFT's PE Ratio compare to its peers?

The above table shows the PE ratio for BSOFT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average72.4x
NEWGEN Newgen Software Technologies
75.6x21.1%₹220.2b
500408 Tata Elxsi
52.8x13.1%₹431.2b
KPITTECH KPIT Technologies
54.1x16.6%₹393.6b
QUICKHEAL Quick Heal Technologies
107xn/a₹34.6b
BSOFT Birlasoft
25.8x12.2%₹159.6b

Price-To-Earnings vs Peers: BSOFT is good value based on its Price-To-Earnings Ratio (25.8x) compared to the peer average (72.4x).


Price to Earnings Ratio vs Industry

How does BSOFT's PE Ratio compare vs other companies in the IN Software Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
CLOUD Varanium Cloud
0.4xn/aUS$8.04m
No more companies available in this PE range
BSOFT 25.8xIndustry Avg. 39.9xNo. of Companies10PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BSOFT is good value based on its Price-To-Earnings Ratio (25.8x) compared to the Indian Software industry average (39.9x).


Price to Earnings Ratio vs Fair Ratio

What is BSOFT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BSOFT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.8x
Fair PE Ratio34.5x

Price-To-Earnings vs Fair Ratio: BSOFT is good value based on its Price-To-Earnings Ratio (25.8x) compared to the estimated Fair Price-To-Earnings Ratio (34.5x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst BSOFT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹577.00
₹641.77
+11.2%
8.6%₹710.00₹540.00n/a13
Dec ’25₹590.65
₹642.54
+8.8%
8.7%₹720.00₹540.00n/a13
Nov ’25₹557.00
₹642.54
+15.4%
8.7%₹720.00₹540.00n/a13
Oct ’25₹595.20
₹707.54
+18.9%
8.8%₹800.00₹610.00n/a13
Sep ’25₹670.55
₹733.69
+9.4%
8.1%₹800.00₹620.00n/a13
Aug ’25₹643.00
₹743.69
+15.7%
8.8%₹840.00₹620.00n/a13
Jul ’25₹717.60
₹786.77
+9.6%
8.4%₹910.00₹610.00n/a13
Jun ’25₹604.65
₹772.75
+27.8%
7.6%₹860.00₹610.00n/a12
May ’25₹650.10
₹777.75
+19.6%
8.3%₹870.00₹610.00n/a12
Apr ’25₹761.75
₹854.50
+12.2%
7.5%₹950.00₹780.00n/a12
Mar ’25₹774.75
₹857.08
+10.6%
8.2%₹950.00₹760.00n/a12
Feb ’25₹828.85
₹832.92
+0.5%
13.7%₹950.00₹530.00n/a12
Jan ’25₹702.35
₹652.33
-7.1%
16.4%₹866.00₹510.00n/a12
Dec ’24₹634.70
₹600.55
-5.4%
11.0%₹750.00₹510.00₹590.6511
Nov ’24₹574.20
₹590.55
+2.8%
8.3%₹640.00₹510.00₹557.0011
Oct ’24₹483.35
₹467.60
-3.3%
17.3%₹610.00₹306.00₹595.2010
Sep ’24₹528.35
₹442.82
-16.2%
21.5%₹610.00₹255.00₹670.5511
Aug ’24₹432.15
₹416.10
-3.7%
18.2%₹510.00₹255.00₹643.0010
Jul ’24₹358.90
₹349.60
-2.6%
16.6%₹470.00₹255.00₹717.6010
Jun ’24₹343.85
₹345.60
+0.5%
17.7%₹490.00₹255.00₹604.6510
May ’24₹272.95
₹325.45
+19.2%
19.6%₹490.00₹255.00₹650.1011
Apr ’24₹261.15
₹332.40
+27.3%
20.4%₹490.00₹255.00₹761.7510
Mar ’24₹277.00
₹343.33
+23.9%
19.5%₹490.00₹255.00₹774.7512
Feb ’24₹296.00
₹381.58
+28.9%
16.4%₹500.00₹284.00₹828.8512
Jan ’24₹298.75
₹369.91
+23.8%
14.5%₹472.00₹284.00₹702.3511
Dec ’23₹323.80
₹369.91
+14.2%
14.5%₹472.00₹284.00₹634.7011

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/21 21:10
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Birlasoft Limited is covered by 41 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Mohit JainAnand Rathi Shares and Stock Brokers Limited
Jayalaxmi GuptaAnand Rathi Shares and Stock Brokers Limited
Srishti AnandAngel Broking Private Limited