Is It Time To Consider Buying Genpact Limited (NYSE:G)?

Simply Wall St · 08/06 10:17
NYSE:G 1 Year Share Price vs Fair Value
NYSE:G 1 Year Share Price vs Fair Value
Explore Genpact's Fair Values from the Community and select yours

Genpact Limited (NYSE:G), might not be a large cap stock, but it saw significant share price movement during recent months on the NYSE, rising to highs of US$50.26 and falling to the lows of US$40.65. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Genpact's current trading price of US$42.37 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Genpact’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Is Genpact Still Cheap?

Good news, investors! Genpact is still a bargain right now according to our price multiple model, which compares the company's price-to-earnings ratio to the industry average. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. we find that Genpact’s ratio of 14.04x is below its peer average of 22.45x, which indicates the stock is trading at a lower price compared to the Professional Services industry. Another thing to keep in mind is that Genpact’s share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its industry peers, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.

View our latest analysis for Genpact

What does the future of Genpact look like?

earnings-and-revenue-growth
NYSE:G Earnings and Revenue Growth August 6th 2025

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by a double-digit 15% over the next couple of years, the outlook is positive for Genpact. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? Since G is currently trading below the industry PE ratio, it may be a great time to increase your holdings in the stock. With a positive profit outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current price multiple.

Are you a potential investor? If you’ve been keeping an eye on G for a while, now might be the time to enter the stock. Its prosperous future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy G. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

Diving deeper into the forecasts for Genpact mentioned earlier will help you understand how analysts view the stock going forward. Luckily, you can check out what analysts are forecasting by clicking here.

If you are no longer interested in Genpact, you can use our free platform to see our list of over 50 other stocks with a high growth potential.