CTSH
Cognizant Technology Solutions Corporation (CTSH)
Last Price$83.50.2%
Market Cap$41.6B
DCF value
$93.2
Undervalued (DCF value)
11.7%
Discount Rate
8.6%
Long-Term Growth Rate
4.0%
Stock quality
6/10
Good

CTSH DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Dec'20 ActualDec'21 ActualDec'22 ActualDec'23 ActualDec'24 ActualDec'25 EstimateDec'26 EstimateDec'27 EstimateDec'28 EstimateDec'29 EstimateDec'30 EstimateDec'31 EstimateDec'32 EstimateDec'33 EstimateDec'34 EstimateDec'35 Terminal
% growth
16,652.0
(0.8%)
18,507.0
11.1%
19,428.0
5.0%
19,353.0
(0.4%)
19,736.0
2.0%
20,908.5
5.9%
22,131.2
5.8%
22,440.1
1.4%
22,826.4
1.7%
23,293.6
2.0%
23,846.2
2.4%
24,489.6
2.7%
25,230.0
3.0%
26,075.0
3.3%
27,033.1
3.7%
28,114.4
4.0%
2,114.0
12.7%
2,826.0
15.3%
2,968.0
15.3%
2,689.0
13.9%
2,892.0
14.7%
3,077.6
14.7%
3,257.6
14.7%
3,303.0
14.7%
3,359.9
14.7%
3,428.7
14.7%
3,510.0
14.7%
3,604.7
14.7%
3,713.7
14.7%
3,838.1
14.7%
3,979.1
14.7%
4,138.3
14.7%
NOPAT
% effective tax rate
1,404.0
8.4%
2,133.2
11.5%
2,249.6
11.6%
2,044.5
10.6%
2,190.2
11.1%
2,330.7
11.1%
2,467.0
11.1%
2,501.5
11.1%
2,544.5
11.1%
2,596.6
11.1%
2,658.2
11.1%
2,729.9
11.1%
2,812.4
11.1%
2,906.6
11.1%
3,013.4
11.1%
3,134.0
11.1%
% of revenue
559.0
3.4%
574.0
3.1%
569.0
2.9%
519.0
2.7%
542.0
2.7%
582.4
2.8%
616.5
2.8%
625.1
2.8%
635.8
2.8%
648.9
2.8%
664.3
2.8%
682.2
2.8%
702.8
2.8%
726.3
2.8%
753.0
2.8%
783.2
2.8%
% of revenue
(398.0)
(2.4%)
(279.0)
(1.5%)
(332.0)
(1.7%)
(317.0)
(1.6%)
(297.0)
(1.5%)
(338.1)
(1.6%)
(357.9)
(1.6%)
(362.9)
(1.6%)
(369.2)
(1.6%)
(376.7)
(1.6%)
(385.7)
(1.6%)
(396.1)
(1.6%)
(408.0)
(1.6%)
(421.7)
(1.6%)
(437.2)
(1.6%)
(454.7)
(1.6%)
813.0
4.9%
(488.0)
(2.6%)
(324.0)
(1.7%)
(189.0)
(1.0%)
(510.0)
(2.6%)
(364.4)
(1.7%)
(385.7)
(1.7%)
(391.1)
(1.7%)
(397.8)
(1.7%)
(406.0)
(1.7%)
(415.6)
(1.7%)
(426.8)
(1.7%)
(439.7)
(1.7%)
(454.4)
(1.7%)
(471.1)
(1.7%)
(490.0)
(1.7%)
Free Cash Flow to Firm (FCFF)
% of revenue
2,378.0
14.3%
1,940.2
10.5%
2,162.6
11.1%
2,057.5
10.6%
1,925.2
9.8%
2,210.6
10.6%
2,339.9
10.6%
2,372.5
10.6%
2,413.4
10.6%
2,462.8
10.6%
2,521.2
10.6%
2,589.2
10.6%
2,667.5
10.6%
2,756.8
10.6%
2,858.1
10.6%
2,972.5
10.6%
% of FCFF used in calculation
83.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
9.50
Discount factor
0.96
0.88
0.81
0.75
0.69
0.63
0.58
0.54
0.49
0.46
Discounted FCFF (DFCFF)
1,760.7
2,066.5
1,928.9
1,806.1
1,696.6
1,598.8
1,511.5
1,433.4
1,363.7
1,301.4

Best stock ideas on the market right now

With Value Sense, you can find undervalued stocks list with intrinsic value. Discover more stock market investment ideas.

CTSH DCF Value

DCF Value Calculation

as of Mar 03, 2025
Sum of DFCFF
% share of EV
16.5B
36.1%
Terminal Value (TV)
64.1B
Discounted TV
% share of EV
29.2B
63.9%
Total Debt
1,480.0M
Shares outstanding
498.0M
FX rate
1.0
11.7% undervalued

Equity Value Bridge

CTSH DCF Financials

Revenue
$19.7B -> $27.0B 3.2% CAGR
Operating Income
$2,892.0M -> $3,979.1M 3.2% CAGR
FCFF
$1,925.2M -> $2,858.1M 4.0% CAGR

CTSH DCF sensitivity

DCF value
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
8.0%
$93.0
$99.0
$107.0
$115.0
$115.0
8.5%
$85.0
$90.0
$96.0
$104.0
$112.0
8.6%
$83.0
$88.0
$93.0
$100.0
$109.0
9.5%
$72.0
$75.0
$79.0
$84.0
$89.0
10.0%
$67.0
$70.0
$73.0
$77.0
$81.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
8.0%
11.0%
19.0%
28.0%
38.0%
38.0%
8.5%
2.0%
8.0%
15.0%
25.0%
34.0%
8.6%
(1.0%)
5.0%
11.0%
20.0%
31.0%
9.5%
(14.0%)
(10.0%)
(5.0%)
1.0%
7.0%
10.0%
(20.0%)
(16.0%)
(13.0%)
(8.0%)
(3.0%)

Explore more intrinsic value tools hub for CTSH

FAQ

What is Cognizant Technology Solutions Corporation DCF (discounted cash flow) valuation?

As of Mar 03, 2025, Cognizant Technology Solutions Corporation's Discounted Cash Flow (DCF) valuation estimates its share price at $93.2. This suggests it may be undervalued by 11.7% compared to its current price of around $83.5, using a WACC of 8.6% and growth rates of 4.0%.

What is Cognizant Technology Solutions Corporation WACC?

As of Mar 03, 2025, Cognizant Technology Solutions Corporation's Weighted Average Cost of Capital (WACC) is approximately 8.6%.

What is Cognizant Technology Solutions Corporation Enterprise Value?

As of Mar 03, 2025, Cognizant Technology Solutions Corporation's Enterprise Value (EV) is approximately $45.7B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.