On the four Ms, Genpact Ltd earns 96 for management and 93 for moat. The management score rests on a return on invested capital of 12.3% and a gross margin of 35.6% — figures that describe a business turning capital into profit efficiently. Debt sits at 0.69x equity.
The price anchors are built on deliberately conservative assumptions. Growth is modelled at 6.5% a year, the rate measured from the filings. The exit multiple assumed is 13.0x. That produces an intrinsic value of $20.28, a 10-CAP price of $34.83 and a payback time price of $37.37, with the value zone set at the highest of the three, $37.37. Today's price of $34.70 sits inside that zone.
Genpact Ltd currently reads as a strong business at a price the model supports. That is rare enough to warrant asking what the market sees that these figures do not.
| Price | $34.70 |
| Market cap | $5.9B |
| P/E ratio | 10.3x |
| Return on invested capital | 12.3% |
| Gross margin | 35.6% |
| Debt to equity | 0.69x |
| Free cash flow yield | 9.0% |
| Growth rate used | 6.5% |
| Growth rate measured | 6.0% |
| Exit multiple assumed | 13.0x |
| Company | Moat | Buy price |
| EPAM Systems, Inc. (EPAM) | 75 | $150.84 |
| Globant Sa (GLOB) | 81 | $117.30 |
| Jack Henry & Associates (JKHY) | 82 | $110.25 |
| ASGN Incorporated (ASGN) | 32 | $56.55 |
Every number above is built on assumptions that can be changed. In Moatly you can move the growth rate, the exit multiple and the margin of safety and watch every figure recalculate, so you are testing your own view of Genpact Ltd rather than accepting ours.