Cognizant Technology Solutions Corporation (CTSH), Discounted Cash Flow Valuation

Cognizant Technology Solutions Corporation (CTSH) Unternehmen Profile

US | Technology | Information Technology Services | NASDAQ
69.44 -0.57 (-0.81%)
Real-Time Price (USD)
Market Cap A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
34.35B
Revenue (ttm) The total amount of income generated by the sale of goods or services related to the company's primary operations.
19.74B
Net Income (ttm) The company's earnings for a period net of operating costs, taxes and interest.
2.24B
Shares Out Total number of common shares outstanding as of the latest date disclosed in a financial filing.
496M
EPS (ttm) Company's net earnings or losses from continuing operations on a per diluted share basis.
4.51
PE Ratio The price-to-earnings (PE) ratio is the ratio between a company's stock price and earnings per share. It measures the price of a stock relative to its profits.
17.03
Dividend Yield Measures the cash returned to shareholders by a firm as a percentage of the price they pay for each share of stock.
1.57%
Exchange Name of stock exchange where the trading item trades.
NASDAQ
Avg Volume The average number of shares traded each day over the past 30 days.
4.23M
Open The opening trade price over the trading day.
70.25
Previous Close The last closing price.
70.01
Beta A ratio that measures the risk or volatility of a company's share price in comparison to the market as a whole.
1.03
1 day delta The range between the high and low prices over the past day.
69.17-70.25
52 weeks The range between the high and low prices over the past 52 weeks.
63.79-90.82

Total Valuation

Cognizant Technology Solutions Corporation has a market cap or net worth of 34.35B. The enterprise value is 33.6B.
Market Cap (ttm) Market Capitalization
A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
34.35B
Enterprise Value (ttm) Enterprise Value
Enterprise value measures the total value of a company's outstanding shares, adjusted for debt and levels of cash and short-term investments.
Enterprise Value = Market Cap + Total Debt - Cash & Equivalents - Short-Term Investments
33.6B

Valuation Ratios

The trailing PE ratio is 15.35. Cognizant Technology Solutions Corporation's PEG ratio is -34.76.
PE Ratio (ttm) PE Ratio
The price-to-earnings (P/E) ratio is a valuation metric that shows how expensive a stock is relative to earnings.
PE Ratio = Stock Price / Earnings Per Share
15.35
PS Ratio (ttm) PS Ratio
The price-to-sales (P/S) ratio is a commonly used valuation metric. It shows how expensive a stock is compared to revenue.
PS Ratio = Market Capitalization / Revenue
1.74
PB Ratio (ttm) PB Ratio
The price-to-book (P/B) ratio measures a stock's price relative to book value. Book value is also called Shareholders' equity.
PB Ratio = Market Capitalization / Shareholders' Equity
2.39
P/FCF Ratio (ttm) P/FCF Ratio
The price to free cash flow (P/FCF) ratio is similar to the P/E ratio, except it uses free cash flow instead of accounting earnings.
P/FCF Ratio = Market Capitalization / Free Cash Flow
18.8
PEG Ratio (ttm) PEG Ratio
The price/earnings to growth (PEG) ratio is calculated by dividing a company's PE ratio by its expected earnings growth.
PEG Ratio = PE Ratio / Expected Earnings Growth
-34.76

Enterprise Valuation

The stock's EV/EBITDA ratio is 9.55, with a EV/FCF ratio of 18.39.
EV / Sales (ttm) EV / Sales Ratio
The enterprise value to sales (EV/Sales) ratio is similar to the price-to-sales ratio, but the price is adjusted for the company's debt and cash levels.
EV/Sales Ratio = Enterprise Value / Revenue
1.7
EV / EBITDA (ttm) EV / EBIT Ratio
The EV/EBITDA ratio measures a company's valuation relative to its EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization.
EV/EBITDA Ratio = Enterprise Value / EBITDA
9.55
EV / EBIT (ttm) EV/EBIT Ratio
The EV/EBIT is a valuation metric that measures a company's price relative to EBIT, or Earnings Before Interest and Taxes.
EV/EBIT Ratio = Enterprise Value / EBIT
15.82
EV / FCF (ttm) EV/FCF Ratio
The enterprise value to free cash flow (EV/FCF) ratio is similar to the price to free cash flow ratio, except the price is adjusted for the company's cash and debt.
EV/FCF Ratio = Enterprise Value / Free Cash Flow
18.39

Financial Efficiency

Return on equity (ROE) is 15.93% and return on invested capital (ROIC) is 13.46%.
Return on Equity (ROE) (ttm) Return on Equity (ROE)
Return on equity (ROE) is a profitability metric that shows how efficient a company is at using its equity (or "net" assets) to generate profits. It is calculated by dividing the company's net income by the average shareholders' equity over the past 12 months.
ROE = (Net Income / Average Shareholders' Equity) * 100%
15.93%
Return on Assets (ROA) (ttm) Return on Assets (ROA)
Return on assets (ROA) is a metric that measures how much profit a company is able to generate using its assets. It is calculated by dividing net income by the average total assets for the past 12 months.
ROA = (Net Income / Average Total Assets) * 100%
11.22%
Return on Capital (ROIC) (ttm) Return on Capital (ROIC)
Return on invested capital (ROIC) measures how effective a company is at investing its capital in order to increase profits. It is calculated by dividing the EBIT (Earnings Before Interest & Taxes) by the average invested capital in the previous year.
ROIC = (EBIT / Average Invested Capital) * 100%
13.46%
Asset Turnover Asset Turnover
The asset turnover ratio measures the amount of sales relative to a company's assets. It indicates how efficiently the company uses its assets to generate revenue.
Asset Turnover Ratio = Revenue / Average Assets
0.99
Inventory Turnover (ttm) Inventory Turnover
The inventory turnover ratio measures how many times inventory has been sold and replaced during a time period.
Inventory Turnover Ratio = Cost of Revenue / Average Inventory
0

Margins

Trailing 12 months gross margin is 32.35%, with operating and profit margins of 14.92% and 11.35%.
Gross Margin (ttm) Gross Margin
Gross margin is the percentage of revenue left as gross profits, after subtracting cost of goods sold from the revenue.
Gross Margin = (Gross Profit / Revenue) * 100%
32.35%
Operating Margin (ttm) Operating Margin
Operating margin is the percentage of revenue left as operating income, after subtracting cost of revenue and all operating expenses from the revenue.
Operating Margin = (Operating Income / Revenue) * 100%
14.92%
Pretax Margin (ttm) Pretax Margin
Pretax margin is the percentage of revenue left as profits before subtracting taxes.
Pretax Margin = (Pretax Income / Revenue) * 100%
14.89%
Profit Margin (ttm) Profit Margin
Profit margin is the percentage of revenue left as net income, or profits, after subtracting all costs and expenses from the revenue.
Profit Margin = (Net Income / Revenue) * 100%
11.35%
EBITDA Margin (ttm) EBITDA Margin
EBITDA margin is the percentage of revenue left as EBITDA, after subtracting all expenses except interest, taxes, depreciation and amortization from revenue.
EBITDA Margin = (EBITDA / Revenue) * 100%
17.83%

Income Statement

In the last 12 months, Cognizant Technology Solutions Corporation had revenue of 19.74B and earned 2.24B in profits. Earnings per share (EPS) was 4.51.
Revenue (ttm) Revenue
Revenue is the amount of money a company receives from its main business activities, such as sales of products or services. Revenue is also called sales.
19.74B
Gross Profit (ttm) Gross Profit
Gross profit is a company’s profit after subtracting the costs directly linked to making and delivering its products and services.
Gross Profit = Revenue - Cost of Revenue
6.38B
Operating Income (ttm) Operating Income
Operating income is the amount of profit in a company after paying for all the expenses related to its core operations.
Operating Income = Revenue - Cost of Revenue - Operating Expenses
2.94B
Pretax Income (ttm) Pretax Income
Pretax income is a company's profits before accounting for income taxes.
Pretax Income = Net Income + Income Taxes
2.94B
Net Income (ttm) Net Income
Net income is a company's accounting profits after subtracting all costs and expenses from the revenue. It is also called earnings, profits or "the bottom line"
Net Income = Revenue - All Expenses
2.24B
EBITDA (ttm) EBITDA
EBITDA stands for "Earnings Before Interest, Taxes, Depreciation and Amortization." It is a commonly used measure of profitability.
EBITDA = Net Income + Interest + Taxes + Depreciation and Amortization
3.52B
EBIT (ttm) EBIT
EBIT stands for "Earnings Before Interest and Taxes" and is a commonly used measure of earnings or profits. It is similar to operating income.
EBIT = Net Income + Interest + Taxes
2.98B
Earnings Per Share (EPS) (ttm) EPS (Diluted)
Earnings per share is the portion of a company's profit that is allocated to each individual stock. Diluted EPS is calculated by dividing net income by "diluted" shares outstanding.
Diluted EPS = Net Income / Shares Outstanding (Diluted)
4.51

Financial Position

The company has a trailing 12 months (ttm) current ratio of 2.09, with a ttm Debt / Equity ratio of 0.1.
Current Ratio (ttm) Current Ratio
The current ratio is used to measure a company's short-term liquidity. A low number can indicate that a company will have trouble paying its upcoming liabilities.
Current Ratio = Current Assets / Current Liabilities
2.09
Quick Ratio (ttm) Quick Ratio
The quick ratio measure a company's short-term liquidity. A low number indicates that the company may have trouble paying its upcoming financial obligations.
Quick Ratio = (Cash + Short-Term Investments + Accounts Receivable) / Current Liabilities
2.09
Debt / Equity (ttm) Debt / Equity Ratio
The debt-to-equity ratio measures a company's debt levels relative to its shareholders' equity or book value. A high ratio implies that a company has a lot of debt.
Debt / Equity Ratio = Total Debt / Shareholders' Equity
0.1
Debt / EBIT (ttm) Debt / EBIT Ratio
The debt-to-EBIT ratio is a company's debt levels relative to its trailing twelve-month EBIT. A high ratio implies that debt is high relative to the company's earnings.
Debt / EBIT Ratio = Total Debt / EBIT (ttm)
1

Dividends & Yields

This stock pays an annual dividend of 1.21, which amounts to a dividend yield of 1.74%.
Dividend Per Share (ttm) Dividend Per Share
Total amount paid to each outstanding share in dividends during the period.
1.21
Dividend Yield (ttm) Dividend Yield
The dividend yield is how much a stock pays in dividends each year, as a percentage of the stock price.
Dividend Yield = (Annual Dividends Per Share / Stock Price) * 100%
1.74%
Earnings Yield (ttm) Earnings Yield
The earnings yield is a valuation metric that measures a company's profits relative to stock price, expressed as a percentage yield. It is the inverse of the P/E ratio.
Earnings Yield = (Earnings Per Share / Stock Price) * 100%
6.52%
FCF Yield (ttm) FCF Yield
The free cash flow (FCF) yield measures a company's free cash flow relative to its price, shown as a percentage. It is the inverse of the P/FCF ratio.
FCF Yield = (Free Cash Flow / Market Cap) * 100%
5.32%
Dividend Growth (YoY) Dividend Growth
The change in dividend payments per share, compared to the previous period.
Dividend Growth = ((Current Dividend / Previous Dividend) - 1) * 100%
3.36%
Payout Ratio (ttm) Payout Ratio
The payout ratio is the percentage of a company's profits that are paid out as dividends. A high ratio implies that the dividend payments may not be sustainable.
Payout Ratio = (Dividends Per Share / Earnings Per Share) * 100%
26.79%

Balance Sheet

The company has 2.23B in cash and 1.48B in debt, giving a net cash position of 751M.
Cash & Cash Equivalents Cash & Cash Equivalents
Cash and cash equivalents is the sum of "Cash & Equivalents" and "Short-Term Investments." This is the amount of money that a company has quick access to, assuming that the cash equivalents and short-term investments can be sold at a short notice.
Cash & Cash Equivalents = Cash & Equivalents + Short-Term Investments
2.23B
Total Debt Total Debt
Total debt is the total amount of liabilities categorized as "debt" on the balance sheet. It includes both current and long-term (non-current) debt.
Total Debt = Current Debt + Long-Term Debt
1.48B
Net Cash Net Cash / Debt
Net Cash / Debt is an indicator of the financial position of a company. It is calculated by taking the total amount of cash and cash equivalents and subtracting the total debt.
Net Cash / Debt = Total Cash - Total Debt
751M
Book Value Shareholders' Equity
Shareholders’ equity is also called book value or net worth. It can be seen as the amount of money held by investors inside the company. It is calculated by subtracting all liabilities from all assets.
Shareholders' Equity = Total Assets - Total Liabilities
14.41B
Book Value Per Share (ttm) Book Value Per Share
Book value per share is the total amount of book value attributable to each individual stock. It is calculated by dividing book value (shareholders' equity) by the number of outstanding shares.
Book Value Per Share = Book Value / Shares Outstanding
29.11
Working Capital (ttm) Working Capital
Working capital is the amount of money available to a business to conduct its day-to-day operations. It is calculated by subtracting total current liabilities from total current assets.
Working Capital = Current Assets - Current Liabilities
3.92B

Cash Flow

In the last 12 months, operating cash flow of the company was 2.12B and capital expenditures -297M, giving a free cash flow of 1.83B.
Operating Cash Flow (ttm) Operating Cash Flow
Operating cash flow, also called cash flow from operating activities, measures the amount of cash that a company generates from normal business activities. It is the amount of cash left after all cash income has been received, and all cash expenses have been paid.
2.12B
Capital Expenditures (ttm) Capital Expenditures
Capital expenditures are also called payments for property, plants and equipment. It measures cash spent on long-term assets that will be used to run the business, such as manufacturing equipment, real estate and others.
-297M
Free Cash Flow (ttm) Free Cash Flow
Free cash flow is the cash remaining after the company spends on everything required to maintain and grow the business. It is calculated by subtracting capital expenditures from operating cash flow.
Free Cash Flow = Operating Cash Flow - Capital Expenditures
1.83B
FCF Per Share (ttm) Free Cash Flow Per Share
Free cash flow per share is the amount of free cash flow attributed to each outstanding stock.
FCF Per Share = Free Cash Flow / Shares Outstanding
3.69

Cognizant Technology Solutions Corporation News

Apr 18, 2025 - prnewswire.com
Cognizant Expands Partnership with Docusign to Enhance Customer Support and Drive Digital Transformation
Collaboration aims to optimize customer service management and streamline agreement processes globally TEANECK, N.J. , April 18, 2025 /PRNewswire/ -- Cognizant (Nasdaq: CTSH) announced today an expanded partnership with Docusign (Nasdaq: DOCU), the Intelligent Agreement Management company, to enhance customer support and drive digital transformation....[read more]
Apr 14, 2025 - newsfilecorp.com
Gorilla Technology Appoints AI Visionary Satish Venkatesan to Lead Americas Innovation Drive
Company also reiterates capital allocation priorities through its previously announced share buyback programme London, United Kingdom--(Newsfile Corp. - April 14, 2025) - Gorilla Technology Group Inc. (NASDAQ: GRRR) ("Gorilla" or the "Company"), global solution provider in Security Intelligence, Network Intelligence, Business Intelligence and IoT technology, today announced the appointment of Satish Venkatesan as Chief Solutions Strategist - Americas, effective 14 April 2025. To view an enhanced...[read more]
Apr 14, 2025 - prnewswire.com
Belcan Named Supplier of the Year by GE Aerospace
CINCINNATI , April 14, 2025 /PRNewswire/ -- Belcan, LLC (a Cognizant company), a global supplier of design, software, manufacturing, supply chain, information technology, and digital engineering solutions to the aerospace, defense, space, automotive, industrial, marine, and government services markets, today announced that it has been named Supplier of the Year by GE Aerospace. The Supplier of the Year award recognizes the business that exemplifies excellence in all key aspects of a valued suppl...[read more]
Apr 11, 2025 - https://247wallst.com
Live Nasdaq Composite: AMZN (Nasdaq: AMZN), CEG (Nasdaq: CEG) Fall in Sea of Red
Live Updates Live Coverage Has Ended Markets Lose Their Mojo 4:00 pm by Gerelyn Terzo The markets finished the day much like they started it – lower. All three of the major stock market indexes were sent reeling today, including an eye-popping 4% drop in the Nasdaq Composite. Right behind it was the Dow Jones Industrial Average, with nearly another 1,000-point drop, and the S&P 500, falling 3.3%. President Trump is willing to extend the 90-day tariff relief, but it did little to lift t...[read more]
Apr 9, 2025 - zacks.com
CTSH Expands Clientele With OMRON Deal: Buy, Sell or Hold the Stock?
Cognizant teams up with OMRON to transform manufacturing with IT-OT integration, offering smart solutions for enhanced productivity and sustainability....[read more]
Apr 9, 2025 - prnewswire.com
Cognizant Schedules First Quarter 2025 Earnings Release and Conference Call
TEANECK, N.J. , April 9, 2025 /PRNewswire/ -- Cognizant (Nasdaq: CTSH), a leading provider of information technology, consulting, and business process services, will announce results for the first quarter of 2025 on Wednesday, April 30, 2025 after market close....[read more]
Apr 8, 2025 - prnewswire.com
OMRON and Cognizant Partner to Revolutionize Manufacturing with Unique One-Stop IT-OT Integration
Balancing economic and social value for the future of manufacturing through advanced technologies. Promoting sustainable manufacturing by enhancing workforce efficiency, boosting productivity, and minimizing greenhouse gas emissions....[read more]
Mar 31, 2025 - zacks.com
Cognizant Grows Through Expanding Clientele & Strong Partnerships
CTSH's expanding client base, AI advancements and key partnerships position it for strong growth in 2025....[read more]
Mar 27, 2025 - prnewswire.com
Cognizant and ServiceNow Launch AI-Powered Dispute Management Solution for Mid-Market Banks
The BPaaS solution is designed to streamline the dispute resolution process and enhance customer satisfaction TEANECK, N.J. , March 27, 2025 /PRNewswire/ -- Cognizant (Nasdaq: CTSH) announced today the launch of an AI-powered dispute management solution in partnership with ServiceNow (NYSE: NOW)....[read more]
Mar 26, 2025 - schaeffersresearch.com
3 Cloud-Based Stocks to Watch in the Short Term
The tech sector has been at the front of broader-market volatility over the past month, and today's Big Tech rout is currently dragging the Nasdaq Composite Index (IXIC) toward its first losing day in four....[read more]

Cognizant Technology Solutions Corporation Details

Country US
City Teaneck
Address 300 Frank West Burr Boulevard
Ticker Symbol CTSH
Exchange NASDAQ Global Select
IPO Date Jun 19, 1998
CEO Mr. Ravi Kumar Singisetti
Sector Technology
Industry Information Technology Services
Employees 336.8K

Cognizant Technology Solutions Corporation Company Description

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services; Healthcare; Products and Resources; and Communications, Media and Technology. The company offers customer experience enhancement, robotic process automation, analytics, and AI services in areas, such as digital lending, fraud detection, and next generation payments; the shift towards consumerism, outcome-based contracting, digital health, delivering integrated seamless, omni-channel, and patient-centered experience; and services that drive operational improvements in areas, such as clinical development, pharmacovigilance, and manufacturing, as well as claims processing, enrollment, membership, and billing to healthcare providers and payers, and life sciences companies, including pharmaceutical, biotech, and medical device companies. It also provides solution to manufacturers, retailers and travel and hospitality companies, as well as companies providing logistics, energy and utility services; and digital content, the creation of personalized user experience, and acceleration of digital engineering services to information, media and entertainment, and communications and technology companies. The company was founded in 1994 and is headquartered in Teaneck, New Jersey.

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