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:
We started the process of determining a valid price forecast for Cognizant Technology Solutions Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Cognizant Technology Solutions Corp ranked in the 51th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 13.83% on a DCF basis. The most interesting components of our discounted cash flow analysis for Cognizant Technology Solutions Corp ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 82.37; that's higher than 91.71% of US stocks in the Technology sector that have positive free cash flow.
The business' balance sheet reveals debt to be 8% of the company's capital (with equity being the remaining amount). Approximately just 20.49% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
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 39.26% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
IBM, COMM, CPSI, AUDC, and PALT 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.
Cognizant Technology Solutions (NASDAQ: CTSH) has been on a buying spree in 2020. The portfolio of the acquisitions that Cognizant made this year is expected to help the company in its legacy offerings and new offerings and were focused on expanding its cloud capabilities. So far, Cognizant had made seven acquisitions in this year. The […]
Seeing signs of "building momentum," BofA upgrades Cognizant Technology Solutions (CTSH) from Neutral to Buy and raises the price target from $67 to $76.Analyst Jason Kupferberg thinks "the riskiest part of the turnaround has passed" thanks to the positive track record under the new management.The analyst praises CTSH's shift towards high-growth digital sales...
Cognizant Softvision will host its sixth annual Programmers Week, Sept.14-18, celebrating innovations and digital technology contributions of programmers, developers, and software engineers from Cognizant Softvision studios around the world. The virtual event will honor developers, code designers, quality assurance, and software engineers who bring invaluable expertise and insights to Cognizant Softvision. Keynote sessions will […] The post Cognizant Softvision to Host 6th Annual Programmers’ Week appeared first on Business Review .
Cognizant (CTSH) has entered into an agreement to acquire Microsoft Azure-focused cloud specialist 10th Magnitude.The transaction is expected to close in Q3. Financial terms weren't provided.The acquisition will bolster Cognizant's Microsoft Business Group, adding development and service hubs in major cities across the United States.10th Magnitude is Cognizant's sixth cloud-related acquisition...
There were six Indian companies among the top 25 employers, and only one, Tata Consultancy Services, among the top ten. The denial rates for these companies, and others like Cognizant (52%), Deloitte (41%) and Accenture(31%) who bring in employees and place them at client locations was significantly higher than product and technology companies like Facebook (7%) and Microsoft (12%).