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Cognizant Technology Solutions Corporation — Intrinsic Value & Fair Price

CTSH
NASDAQTechnologyInformation Technology ServicesCIK 0001058290cognizant.comAbout CTSH
Valuation grade ?S
Quant grade ?A
Last close · Oct 30, 202665.11+2.59 (+4.14%)
Model value · DCF · Perpetuity growth · 5y
95.22
Cognizant closed at $65.11 — undervalued by 32% vs model.
81.09the model's range115.82

DCF · Perpetuity growth · 5y leads for a mature, steady company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
25.74 – 120.03
Wall St. target
78.00 17% below
Below model, 1y
30 of 30 days

How it is valued

Valued asMature & stable
Low/slowing growth (~4% recent)Moderate margins (11% net margin)Pays dividendsHighly cyclical earningsStrong FCF yield (8.9%)
What growth the price implies: the reverse DCF

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; how each model works is in the manual.