NASDAQ
CTSH
Last Price
US $38.73
KEY FIGURES
MKT CAP
$19.0B
EPS
TTM
$4.67
PEG
TTM
N/M
P/E
TTM
8.68x
P/S
TTM
0.90x
YIELD
3.20%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
14.79%
Return on equity
ROIC: 12.51%
Valuation History
8.7X
Price to Earnings
EV/EBITDA: 4.6X
Cash flow
Profit margin
4.86%
(FY vs FY)
EBITDA Y/Y
9.27%
(FY vs FY)
Cash flow Y/Y
-2.20%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $38.73
49.52%
Default assumptions
EBITDA Multiple
Fair Value
Market $38.73
58.02%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Cognizant Technology Solutions Corporation cash flow to debt ratio of 183.05% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.
Financial stability - Healthy cash flow growth.
Cognizant Technology Solutions Corporation's free cash flow has increased 42.04% from $1.83G last year to $2.60G, signaling increasing performance
Financial stability - Healthy debt to equity ratio.
Cognizant Technology Solutions Corporation's debt to equity ratio is 0.07, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial stability - Healthy debt to equity ratio development.
Cognizant Technology Solutions Corporation's debt has decreased relative to shareholder equity from 0.10 last year to 0.07 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
Cognizant Technology Solutions Corporation has a net debt to EBITDA ratio of 0.00x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Cognizant Technology Solutions Corporation earns at least as much interest as it pays. Interest obligations are fully covered.
Financial risk - Profit margin growth.
Cognizant Technology Solutions Corporation's profit margin has decreased (-8.25%) in the last year from 11.35% to 10.41%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
Cognizant Technology Solutions Corporation's short-term assets of $8.55G exceed its short-term liabilities of $3.66G
Increasing performance - ROA.
Cognizant Technology Solutions Corporation's return on assets of 10.87% is higher than the 5.00% threshold, indicating efficient asset utilization
Decreasing performance - Absolute return on equity.
Cognizant Technology Solutions Corporation's return on equity of 14.79%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
Cognizant Technology Solutions Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Cognizant Technology Solutions Corporation had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Cognizant Technology Solutions Corporation has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Cognizant Technology Solutions Corporation has a free cash flow yield of 13.68%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
Cognizant Technology Solutions Corporation's yearly earnings has decreased -0.45% since last year from $2.24G to $2.23G, signaling decreasing performance
Increasing performance - Healthy revenue growth.
Cognizant Technology Solutions Corporation's yearly revenue has increased 6.95% since last year from $19.74G to $21.11G, signaling increasing performance
Increasing performance - ROIC.
ROIC 12.51% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
Cognizant Technology Solutions Corporation's 3-year revenue CAGR of 2.80% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Cognizant Technology Solutions Corporation had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Cognizant Technology Solutions Corporation had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Undervalued - DCF valuation.
Cognizant Technology Solutions Corporation is undervalued relative to its fair value price of 57.91 based on Discounted Cash Flow model
Undervalued - Earnings yield.
Cognizant Technology Solutions Corporation has an earnings yield of 11.67%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Undervalued - EBITDA valuation.
Cognizant Technology Solutions Corporation is undervalued relative to its fair value price of 61.20 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Cognizant Technology Solutions Corporation has an EV/EBITDA ratio of 4.57x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
Cognizant Technology Solutions Corporation has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails
Undervalued - P/B ratio.
Cognizant Technology Solutions Corporation has a price-to-book ratio of 1.27x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Cognizant Technology Solutions Corporation has a price-to-sales ratio of 0.89x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue