DCF Tool

CTSH

Cognizant Technology Solutions Corp. – Data Processing, Hosting, and Related Services
Cognizant is one of the world's leading professional services companies, transforming clients' business, operating, and technology models for the digital era. Its unique industry-based, consultative approach helps clients envision, build and run more innovative and efficient businesses. Headquartered in the U.S., Cognizant is ranked 194 on the Fortune 500 and is consistently listed among the most admired companies in the world.
Analysis Results
Intrinsic Value $343.59
Latest Price $72.74
Relative Value 79% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 13.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 2.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 13.7%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 3.66 3.57
2023 4.17 3.95
2024 4.74 4.38
2025 5.39 4.85
2026 6.12 5.37
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 184 billion. This corresponds to a present value of 157 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 22.1 billion. Adding in the terminal value gives a total present value of 179 billion.

There are presently 521.0 million outstanding shares, so the intrinsic value per share is 343.59.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 7,342,000,000
Current Cash 1,792,000,000
Current Liabilities 3,529,000,000
Current Debt 38,000,000
Non-Cash Working Capital (NCWC) 2,059,000,000
Change in NCWC 1,390,000,000
EBIT 2,829,000,000
Tax Provision 693,000,000
Depreciation and Amortization 574,000,000
Capital Expenditure -279,000,000
Unlevered Free Cash Flow 3,821,244,876
Current Assets 6,851,000,000
Current Cash 2,680,000,000
Current Liabilities 3,540,000,000
Current Debt 38,000,000
Non-Cash Working Capital (NCWC) 669,000,000
Change in NCWC -573,000,000
EBIT 2,329,000,000
Tax Provision 704,000,000
Depreciation and Amortization 559,000,000
Capital Expenditure -398,000,000
Unlevered Free Cash Flow 1,134,740,458
Current Assets 7,611,000,000
Current Cash 3,424,000,000
Current Liabilities 2,983,000,000
Current Debt 38,000,000
Non-Cash Working Capital (NCWC) 1,242,000,000
Change in NCWC -156,000,000
EBIT 2,612,000,000
Tax Provision 643,000,000
Depreciation and Amortization 526,000,000
Capital Expenditure -392,000,000
Unlevered Free Cash Flow 1,914,138,430
Current Assets 8,677,000,000
Current Cash 4,511,000,000
Current Liabilities 2,777,000,000
Current Debt 9,000,000
Non-Cash Working Capital (NCWC) 1,398,000,000
Change in NCWC 7,000,000
EBIT 2,803,000,000
Tax Provision 698,000,000
Depreciation and Amortization 498,000,000
Capital Expenditure -377,000,000
Unlevered Free Cash Flow 2,232,002,500
Current Assets 9,111,000,000
Current Cash 5,056,000,000
Current Liabilities 2,839,000,000
Current Debt 175,000,000
Non-Cash Working Capital (NCWC) 1,391,000,000
Change in NCWC 297,000,000
EBIT 2,483,000,000
Tax Provision 1,153,000,000
Depreciation and Amortization 443,000,000
Capital Expenditure -284,000,000
Unlevered Free Cash Flow 1,861,506,962
Current Assets 8,600,000,000
Current Cash 5,169,000,000
Current Liabilities 2,418,000,000
Current Debt 81,000,000
Non-Cash Working Capital (NCWC) 1,094,000,000
Change in NCWC 442,300,000
EBIT 2,290,000,000
Tax Provision 805,000,000
Depreciation and Amortization 379,000,000
Capital Expenditure -300,000,000
Unlevered Free Cash Flow 2,029,514,588
Current Assets 7,908,600,000
Current Cash 4,949,500,000
Current Liabilities 2,713,700,000
Current Debt 406,300,000
Non-Cash Working Capital (NCWC) 651,700,000
Change in NCWC -431,779,000
EBIT 2,142,000,000
Tax Provision 540,000,000
Depreciation and Amortization 330,000,000
Capital Expenditure -272,800,000
Unlevered Free Cash Flow 1,232,812,014
Current Assets 6,750,297,000
Current Cash 3,774,726,000
Current Liabilities 2,592,094,000
Current Debt 700,002,000
Non-Cash Working Capital (NCWC) 1,083,479,000
Change in NCWC 457,578,000
EBIT 1,884,878,000
Tax Provision 484,764,000
Depreciation and Amortization 208,067,000
Capital Expenditure -212,203,000
Unlevered Free Cash Flow 1,863,420,687
Current Assets 6,147,882,000
Current Cash 3,747,473,000
Current Liabilities 1,774,508,000
Current Debt 0
Non-Cash Working Capital (NCWC) 625,901,000
Change in NCWC 52,695,000
EBIT 1,677,910,000
Tax Provision 459,339,000
Depreciation and Amortization 179,930,000
Capital Expenditure -261,626,000
Unlevered Free Cash Flow 1,192,293,241
Current Assets 4,814,294,000
Current Cash 2,863,758,000
Current Liabilities 1,377,330,000
Current Debt 0
Non-Cash Working Capital (NCWC) 573,206,000
Change in NCWC 129,669,000
EBIT 1,361,496,000
Tax Provision 336,333,000
Depreciation and Amortization 156,588,000
Capital Expenditure -334,465,000
Unlevered Free Cash Flow 983,281,258

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.