Value Sense
CTSH

Cognizant Technology Solutions Corporation (CTSH)

Last Price$83.50.2%
Market Cap$41.6B

CTSH Rating

CTSH Quality rating
6.0
How this score works?
CTSH Quality rating performance

CTSH Intrinsic Value

Key Highlights:
Relative Value vs Current Share Price
As of Mar 03, 2025 CTSH Relative Value is $140.5, which is undervalued by 68.2%, compared to current share price of $83.5.
DCF Value vs Current Share Price
As of Mar 03, 2025 CTSH DCF Value is $92.4, which is undervalued by 10.7%, compared to current share price of $83.5.
Methodology
Price per share, $
CTSH
Intrinsic value$116.3
Undervalued by39.3%
Current share price
83.5
Relative value
140.5
DCF value
92.4

CTSH Share Price History

1W (1.2%)
1M 0.7%
6M 9.2%
YTD 14.0%
1Y 6.9%
3Y (0.6%)
5Y 50.5%
10Y 47.6%
Share Price
Intrinsic Value
Drawdown
Total Return
vs SP500
vs NASDAQ
Crunching data... Almost there!

CTSH Stock Metrics

Key stats
Income statement
Balance sheet
Cash Flow Statement
Valuation
Ratios
Per share
Per employee
Dividends & Yields
Base
Market Cap
$41.6B
Enterprise Value
$40.8B
LTM Revenue
$19.7B
LTM Free Cash Flow
$1,827.0M
Shares Outstanding
498M
Employees
337K
Growth (CAGR)
Revenue 5Y
3.3%
Operating Income 5Y
3.7%
EPS 5Y
6.51%
Free Cash Flow 5Y
(2.8%)
Forward Revenue 2Y
5.9%
Forward EPS 2Y
10.19%
Profitability
Gross margin
32.4%
EBIT margin
14.9%
Net income margin
11.3%
OCF margin
10.8%
FCF margin
9.3%
FCF / Net Income
81.6%
Intrinsic Value
Intrinsic Value
$116.3 (39.3% undervalued)
DCF Value
$93.2
Relative Value
$139.4
Peter Lynch fair value
$49.3
Ben Graham fair value
$66.5
Reverse DCF (implied FCF growth)
3.4%
EPV, % of EV
76.9%
Valuation (LTM)
EV / Revenue
2.1x
EV / EBIT
13.9x
P / FCF
22.8x
P / E
18.6x
P / BV
2.9x
PEG
1.8x
FCF Yield
4.4%
Return on Capital
ROE
15.5%
ROA
11.2%
ROIC
18.7%
ROCE
15.9%
ROE 5Y avg
16.4%
ROIC 5Y avg
12.5%
ROCE 5Y avg
12.5%
Financial Health
Cash & Short-term Investments
$2,243.0M
Net Debt
($763.0M)
Net Debt / FCF
(0.4x)
EBIT / Interest
184.0x
Total Debt / Equity
10.3%
Dividends
Dividends per share (DPS)
$1.2
DPS 5Y CAGR
9.5%
Dividend Yield
1.4%
FCF Payout ratio
32.8%
Ex-dividend date
Nov 19, 2024
Earnings
Next earnings date
Apr 29, 2025
Last Revenue surprise
BEAT by 1.0%
Last EPS surprise
BEAT by 8.0%
Next EPS YoY growth
11.6%
Last 10 earnings
9 Beat & 1 Miss

CTSH Stock Financials

CTSH Income Statement Metrics

Annual
Quarterly
LTM

Revenue

$19.7B +2.0% YoY

Operating Income

$2.9B +7.5% YoY

Net Income

$2.2B +5.4% YoY

CTSH Cash Flow Statement Metrics

Annual
Quarterly
LTM

Operating Cash Flow (OCF)

$2,124.0M -8.8% YoY

Capital Expenditure (CAPEX)

($297.0M) -6.3% YoY

Free Cash Flow (FCF)

$1,827.0M -9.2% YoY

CTSH Income Statement Overview

Annual
Quarterly
LTM
Dec'15
Dec'16
Dec'17
Dec'18
Dec'19
Dec'20
Dec'21
Dec'22
Dec'23
Dec'24
Revenue
$19.7B 2.0% YoY
Gross profit
$6,778.0M 1.3% YoY
34.3% margin
Cost of revenue
$13.0B 2.3% YoY
Operating income
$2,892.0M 7.5% YoY
14.7% margin
Other: $19.0M
Net interest: $65.0M
Operating expenses
$3,886.0M (2.8%) YoY
Pre-tax income
$2,938.0M 5.4% YoY
14.9% margin
Net income
$2,240.0M 5.4% YoY
11.3% margin
Income tax
$713.0M
24.3% tax rate
SG&A
$3,223.0M (0.9%) YoY
16.3% of revenue

CTSH Balance Sheet Overview

Annual
Quarterly
LTM
Dec'15
Dec'16
Dec'17
Dec'18
Dec'19
Dec'20
Dec'21
Dec'22
Dec'23
Dec'24
Assets
Liabilities
Total assets
$20.0B
Current assets ($7,504.0M, 37.6% of total)
Cash & ST investments
$2,243.0M (11.2%)
Accounts receivables
$4,059.0M (20.3%)
Other current assets
$1,202.0M (6.0%)
Non-current assets ($12.5B, 62.4% of total)
Intangible assets
$1,599.0M (8.0%)
Other non-current assets
$9,227.0M (46.2%)
Financial position
Net Debt
($763.0M)
$2,243.0M$1,480.0M
Cash & Short-term Investments
Total Debt
Quick ratio
1.8x
Net Debt to Free Cash Flow
(0.4x)
Debt to Equity ratio
10.3%

CTSH Stock Ratios

Annual
Quarterly
LTM
Industry Median
5Y Historical Average
Benchmark
Revenue growth
EPS growth
Gross margin
Free Cash Flow margin
Net Debt to FCF
FCF to Interest
ROIC
Shareholder yield

CTSH Earnings Surprises

Crunching data... Almost there!

CTSH Dividends

CTSH Dividend Yield

Crunching data... Almost there!

CTSH Dividend Per Share

3Y
10Y
30Y
Annual
Quarterly
LTM
1Y Growth
4.3%
3Y CAGR
9.4%
5Y CAGR
9.5%
10Y CAGR
N/A

Competing with CTSH

Overview
Ratings
Intrinsic Value
Valuation
Growth
Profitability
Health
Capital allocation
Momentum
Earnings
Dividends
Company name
Market Cap
Quality rating
Intrinsic value
1Y Return
Revenue
Free Cash Flow
Revenue growth
FCF margin
Gross margin
ROIC
Total Debt to Equity
CTSH
$41.6B
6.0
$116.3
39.3% undervalued
6.9%
$19.7B
$1,827.0M
2.0%
9.3%
32.4%
18.7%
10.3%
IBM
$236.6B
6.2
$205.6
17.8% overvalued
33.1%
$62.8B
$12.2B
1.4%
19.5%
56.3%
10.3%
213.2%
ACN
$218.7B
6.8
$285.0
17.4% overvalued
(8.6%)
$66.4B
$9,055.2M
2.7%
13.6%
32.5%
24.0%
19.5%
FI
$135.6B
7.9
$209.3
12.0% overvalued
58.5%
$20.5B
$5,101.0M
7.1%
24.9%
70.7%
11.5%
89.7%
INFY
$84.8B
6.9
$16.2
18.1% overvalued
3.0%
$19.1B
$2,828.1M
3.0%
14.8%
30.3%
35.3%
6.4%
IT
$38.6B
7.5
$321.7
34.5% overvalued
4.6%
$6,267.4M
$1,383.2M
6.1%
22.1%
66.9%
20.4%
213.4%
FIS
$38.5B
6.3
$61.1
15.4% overvalued
5.9%
$10.1B
$2,067.0M
(17.4%)
20.4%
37.7%
7.7%
10.2%
BR
$28.7B
7.1
$172.0
29.7% overvalued
21.0%
$6,682.9M
$946.3M
5.7%
14.2%
30.3%
16.1%
164.1%
GIB
$24.0B
5.7
$144.4
39.8% undervalued
(11.0%)
CA$14.9B
CA$2,013.1M
2.8%
13.5%
16.4%
4.8%
34.5%
CDW
$23.5B
5.5
$284.8
65.1% undervalued
(29.4%)
$21.0B
$1,154.7M
(1.8%)
5.5%
21.9%
16.7%
76.6%
WIT
$17.3B
6.6
$6.2
90.3% undervalued
3.8%
₹887.9B
₹126.8B
(2.1%)
14.3%
30.2%
16.7%
22.6%

FAQ

What is Cognizant Technology Solutions Corporation (CTSH) stock rating?

As of today, Cognizant Technology Solutions Corporation has a stock rating of 6 (out of 10), which is considered Good.

is Cognizant Technology Solutions Corporation (CTSH) a good stock to buy?

As of today, Cognizant Technology Solutions Corporation has a Good stock rating, which is 39.3% undervalued. According to Value Sense backtesting, stocks with similar profile tend to outperform the market by 3.2%.