Cognizant Technology Solutions Corporation - (CTSH) Company Bio
Cognizant Technology Solutions is a provider of information technology, consulting, and business process outsourcing services. The Company operates in four segments: Financial Services segment, which include banking and insurance; Healthcare segment, which includes healthcare and life sciences, and Manufacturing/Retail/Logistics segment, which includes manufacturing and logistics; retail, travel and hospitality, and consumer goods and Other segment, which includes Communications, Manufacturing/Retail/Logistics, and High Technology.
CTSH Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CTSH, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Cognizant Technology Solutions Corp ranked in the 48th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 7.5%. In terms of the factors that were most noteworthy in this DCF analysis for CTSH, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 97.44 -- which is good for besting 93.74% of its peer stocks (US stocks in the Technology sector with positive cash flow).
The business' balance sheet suggests that 10% of the company's capital is sourced from debt; this is greater than merely 21.46% of the free cash flow producing stocks we're observing.
CTSH's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 40.38% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
MCHP, MXL, AMOT, CDW, and GIB can be thought of as valuation peers to CTSH, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Ahead of the Q2 results on July 29, BMO upgrades Cognizant (CTSH) from Market Perform to Outperform and raises the target from $64 to $70, a 17% upside.The firm expects CTSH's results to "gradually improve from a bottom in the June Q."BMO says the stock's upside outweighs the downside, but...
Stocks overall were rising largely on positive developments on a coronavirus vaccine. Shares of travel-related Internet stocks surged on Wednesday following the news that a coronavirus vaccine candidate developed by Moderna and the U.S. National Institutes of Health produced the desired immune response. Expedia was up 8.4% to $89.40 following the news of a vaccine.
(Bloomberg) -- When the pandemic slammed the travel industry earlier this year, Jeff Cavins didn’t know if his startup was going to make it. Cavins is the chief executive officer of Outdoorsy Inc., a Texas-based RV marketplace. In March and April, as Americans scrapped their travel plans en masse, Outdoorsy’s cancellation rate ran as high as 90%.Cavins furloughed 40% of his staff, gave across-the-board pay cuts and said he wouldn’t take a salary through the end of the year. Despite having raised more than $80 million from investors, the company took a $1.5 million loan from the federal government’s Paycheck Protection Program to staunch the bleeding.“If we don’t do it, we’re going to sink this company and there will be nothing left,” Cavins recalls telling his team before the changes. “...
Technavio has been monitoring the digital asset management market and it is poised to grow by $ 6.59 bn during 2020-2024, progressing at a CAGR of 23% during the forecast period. The report offers an up-to-date analysis regarding the current market scenario, latest trends and drivers, and the overall market environment. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200712005007/en/ Technavio has announced its latest market research report titled Global Digital Asset Management Market 2020-2024 (Graphic: Business Wire) Technavio suggests three forecast scenarios (optimistic, probable, and pessimistic) considering the impact of COVID-19 . Please Request Latest Free Sample Report on COVID-19 Impact The market is concentrated, a...
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