Hinduja Global Solutions Valuation

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

HGS (₹631.65) is trading above our estimate of [[fair value]] (₹54.27)

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: HGS (₹631.65) is trading above our estimate of fair value (₹54.27)

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

Key Valuation Metric

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

Key metric: As HGS is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for HGS. This is calculated by dividing HGS's market cap by their current revenue.
What is HGS's PS Ratio?
PS Ratio	0.7x
Sales	₹45.07b
Market Cap	₹31.07b

HGS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.3x
Enterprise Value/EBITDA	-2641.2x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does HGS's PS Ratio compare to its peers?

The above table shows the PS ratio for HGS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	13.7x
534758 Cigniti Technologies	2x	n/a	₹36.2b
KODYTECH Kody Technolab	33.1x	n/a	₹18.8b
506109 Genesys International	11.5x	n/a	₹29.4b
538734 Ceinsys Tech	8x	n/a	₹24.4b
HGS Hinduja Global Solutions	0.7x	n/a	₹29.4b

Price-To-Sales vs Peers: HGS is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (13.7x).

Price to Sales Ratio vs Industry

How does HGS's PS Ratio compare vs other companies in the IN IT Industry?

15 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	4.0x	8.3%
HGS Hinduja Global Solutions	0.7x	n/a	US$348.06m
517562 Trigyn Technologies	0.3x	n/a	US$37.16m
534535 Bio Green Papers	0.9x	n/a	US$29.42m

15 Companies		Estimated Growth	Market Cap
Industry Avg.	4.0x	11.1%
HGS Hinduja Global Solutions	0.7x	n/a	US$348.06m

No more companies

Price-To-Sales vs Industry: HGS is good value based on its Price-To-Sales Ratio (0.7x) compared to the Indian IT industry average (4x).

Price to Sales Ratio vs Fair Ratio

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

HGS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.7x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate HGS's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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