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 47th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 13.17%. As for the metrics that stood out in our discounted cash flow analysis of Cognizant Technology Solutions Corp, consider:
Interest coverage, a measure of earnings relative to interest payments, is 80.64; that's higher than 93.16% of US stocks in the Technology sector that have positive free cash flow.
The business' balance sheet suggests that 9% of the company's capital is sourced from debt; this is greater than merely 20.35% 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 38.95% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CTSH, try UI, NOW, OSTK, IBM, and MEI.
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 .