FCS Software Solutions — Peer Comparison

How the peer fair value is calculated and which companies were used as benchmarks.

Peer selection

Peers are selected from the same IT services & consulting industry. 8 companies were matched as valid comparables.

Same-industry peers share similar business models, cost structures, and growth prospects — making them the most appropriate benchmarks for valuation multiples.

Peer comparison table

IT services & consulting · 8 peers · sector medians shown

Better than medianWorse than median

Company	Mkt Cap	P/E	P/B	EV/EBITDA	ROE	Net Margin	Rev CAGR 3y
FCS Software Solutions FCSSOFT · you	₹254 Cr	-148.9×	0.9×	—	-0.4%	0.1%	—
Sector median	—	22.5×	2.9×	16.7×	11.1%	3.2%	11.4%
Mobavenue AI Tech Limited MOBAVENUE	₹2,477 Cr	500.8×	175.1×	—	34.9%	0.2%	—
Nazara Technologies Limited NAZARA	₹2,281 Cr	140.7×	3.2×	—	2.8%	5.2%	18.8%
Ramco Systems Limited RAMCOSYS	₹2,240 Cr	249.3×	2.9×	—	1.2%	0.1%	—
NELCO Limited NELCO	₹2,192 Cr	719.9×	18.6×	83.1×	2.6%	1.1%	-0.7%
Protean eGov Technologies Limited PROTEAN	₹2,181 Cr	22.5×	2.1×	16.7×	9.3%	10.1%	10.4%
Nucleus Software Exports Limited NUCLEUS	₹2,161 Cr	16.2×	2.1×	16.9×	12.9%	13.3%	11.4%
Saksoft Limited SAKSOFT	₹2,092 Cr	16.8×	2.8×	14.2×	17.6%	12.3%	22.5%
Blue Cloud Softech Solutions Limited BLUECLOUDS	₹2,084 Cr	40.3×	20.7×	—	51.5%	0.1%	—

Peer comparison verdict

FCS trades at a discount to sector peers on P/E (-148.9× vs median 22.5×). This may signal undervaluation — or reflect lower expected growth or higher perceived risk versus the peer group.

How the peer fair value is calculated

Three valuation methods are weighted by sector. Each gives a fair value based on how sector peers are currently priced.

Method breakdown

50% weight · 4 peers

Sector median PE19.7×

Fair value via PE—

20% weight · 7 peers

Sector median PB2.9×

Fair value via PB₹5

EV/EBITDA

30% weight · 3 peers

Sector median EV/EBITDA16.7×

Fair value via EV/EBITDA—

Blended peer fair value₹5

Why median? Why these weights?

Median over mean: The sector median is used instead of the average because valuation multiples have extreme outliers — one high-growth company at 200× P/E would dramatically skew a mean. The median gives the middle value in the peer set, which better represents typical pricing.

Sector-specific weights: The weight given to each method reflects what matters most in this sector. For banks, P/B dominates because their value is tied to book assets. For IT companies, P/E carries the most weight because earnings quality matters more than asset base. For capital-intensive businesses, EV/EBITDA accounts for varying debt levels across peers and removes financing structure bias.

Limitations of peer comparison

Peer comparison assumes comparable companies are truly comparable — which is never perfectly true. Sector classifications can be imperfect: a conglomerate classified as "IT" may also have significant manufacturing revenue. Small peer counts (below 5) reduce confidence, as a single outlier can skew the sector median. When the entire sector is broadly expensive, peer comparison will show even an expensive stock as "fairly valued" relative to its peers.

The peer fair value shown is an algorithmic estimate based on publicly available financial data. It is not investment advice or a recommendation to buy, sell, or hold any security. Please consult a SEBI-registered investment adviser before making any investment decision.