CTSH Fair Value Estimate
$134.76162.7% undervalued
Blended fair value estimate based on DCF, Graham Number, and earnings-based models.
Cognizant Technology Solutions Corp - Class A
Exchange: NASDAQSector: TechnologyIndustry: Information Technology Services
Cognizant Technology Solutions Corporation (Cognizant) is a provider of custom information technology, consulting and business process outsourcing services. The Company is engaged in Business, Process, Operations and Information Technology Consulting, Application Development and Systems Integration, Enterprise Information Management (EIM), Application Testing, Application Maintenance, Information Technology Infrastructure Services, and Business and Knowledge Process Outsourcing, or BPO and KPO. The Company operates in four segments: Financial Services; Healthcare; Manufacturing, Retail and Logistics, and Other, which includes communications, information, media and entertainment, and high technology. In October 2013, Cognizant Technology Solutions of India acquired Equinox Consulting SAS.
Current Price
$51.30
+0.83%GoodMoat Value
$134.76
162.7% undervaluedProfile
Valuation (TTM)
Market Cap$24.53B
P/E11.01
EV$29.13B
P/B1.63
Shares Out478.25M
P/Sales1.15
Revenue$21.41B
EV/EBITDA5.93
Cognizant Technology Solutions Corp - Class A (CTSH) Valuation
CTSH Valuation Metrics
FCF$2.67B
FCF Growth Rate3.99%
EPS Growth (CAGR)3.24%
WACC10.00%
Fair Value Models
Graham Number, PEG-based, and Earnings-based models
View Fair Value →CTSH Valuation & Fair Value Analysis
Cognizant Technology Solutions Corp - Class A (CTSH) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.
The GoodMoat Fair Value target for Cognizant Technology Solutions Corp - Class A is $134.76. The current stock price is $51.30, suggesting the stock is 162.7% undervalued.
The price-to-earnings (P/E) ratio is 11.01. Price-to-book ratio is 1.63. Price-to-sales ratio is 1.15. Enterprise value to EBITDA is 5.93. PEG ratio is 2.95.
GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Cognizant Technology Solutions Corp - Class A's intrinsic value.