Cognizant Technology Valuation
| CTSH Stock | USD 84.84 0.29 0.34% |
At this time, the firm appears to be undervalued. Cognizant Technology shows a prevailing Real Value of $91.4 per share. The current price of the firm is $84.84. Our model approximates the value of Cognizant Technology from analyzing the firm fundamentals such as Return On Equity of 0.16, profit margin of 0.11 %, and Current Valuation of 41.22 B as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Cognizant Technology's valuation include:
Price Book 2.9135 | Enterprise Value | Enterprise Value Ebitda 11.6624 | Price Sales 2.119 | Forward PE 16.9205 |
Undervalued
Today
Please note that Cognizant Technology's price fluctuation is very steady at this time. Calculation of the real value of Cognizant Technology is based on 3 months time horizon. Increasing Cognizant Technology's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Cognizant Technology is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Cognizant Stock. However, Cognizant Technology's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 84.84 | Real 91.4 | Target 84.18 | Hype 84.47 | Naive 81.3 |
The intrinsic value of Cognizant Technology's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Cognizant Technology's stock price.
Estimating the potential upside or downside of Cognizant Technology Solutions helps investors to forecast how Cognizant stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Cognizant Technology more accurately as focusing exclusively on Cognizant Technology's fundamentals will not take into account other important factors: When choosing an evaluation method for Cognizant Technology, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using all methods to arrive at a better estimate.
Cognizant Technology Cash |
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Cognizant Valuation Trend
Cognizant Technology's real value analysis enables investors to forecast the earnings more efficiently. Using both Cognizant Technology's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing decisions.
Cognizant Revenue by Product
Cognizant Technology Total Value Analysis
Cognizant Technology Solutions is currently projected to have valuation of 41.22 B with market capitalization of 41.82 B, debt of 1.48 B, and cash on hands of 2.73 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Cognizant Technology fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
41.22 B | 41.82 B | 1.48 B | 2.73 B |
Cognizant Technology Investor Information
About 100.0% of the company shares are held by institutions such as insurance companies. The book value of Cognizant Technology was currently reported as 29.11. The company has Price/Earnings To Growth (PEG) ratio of 1.78. Cognizant Technology last dividend was issued on the 18th of February 2025. The entity had 2:1 split on the 10th of March 2014. Based on the key measurements obtained from Cognizant Technology's financial statements, Cognizant Technology Solutions is performing exceptionally good at this time. It has a great probability to report excellent financial results in March.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Total Cash From Operating Activities | 1.3 B | 2.1 B |
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Cognizant Technology Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cognizant Technology has an asset utilization ratio of 98.85 percent. This signifies that the Company is making $0.99 for each dollar of assets. An increasing asset utilization means that Cognizant Technology Solutions is more efficient with each dollar of assets it utilizes for everyday operations.Cognizant Technology Ownership Allocation
The majority of Cognizant Technology Solutions outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Cognizant Technology to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Cognizant Technology. Please pay attention to any change in the institutional holdings of Cognizant Technology Solutions as this could imply that something significant has changed or is about to change at the company. On September 6, 2024, Representative John James of US Congress acquired under $15k worth of Cognizant Technology's common stock.Cognizant Technology Profitability Analysis
The company reported the previous year's revenue of 19.74 B. Net Income was 2.24 B with profit before overhead, payroll, taxes, and interest of 6.78 B.Cognizant Technology Past Distributions to stockholders
About Cognizant Technology Valuation
An absolute valuation paradigm, as applied to Cognizant Stock, attempts to find the value of Cognizant Technology based on its fundamental and basic technical indicators. By analyzing Cognizant Technology's financials, quarterly and monthly indicators, and their related drivers, such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Cognizant Technology's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Cognizant Technology. We calculate exposure to Cognizant Technology's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Cognizant Technology's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 6.8 B | 7.1 B | |
| Pretax Profit Margin | 0.15 | 0.20 | |
| Operating Profit Margin | 0.15 | 0.18 | |
| Net Profit Margin | 0.11 | 0.14 | |
| Gross Profit Margin | 0.34 | 0.46 |
Cognizant Technology Quarterly Retained Earnings |
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A single share of Cognizant Technology represents a small ownership stake in the entity. As a stockholder of Cognizant, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Cognizant Technology Dividends Analysis For Valuation
The Cognizant Technology's current Dividend Paid And Capex Coverage Ratio is estimated to increase to 2.94, while Dividends Paid is forecasted to increase to (570 M). . As of now, Cognizant Technology's Retained Earnings are increasing as compared to previous years. The Cognizant Technology's current Price Earnings Ratio is estimated to increase to 33.12, while Retained Earnings Total Equity is projected to decrease to under 8.9 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -600 M | -570 M | |
| Dividend Yield | 0.02 | 0.01 | |
| Dividend Payout Ratio | 0.27 | 0.20 | |
| Dividend Paid And Capex Coverage Ratio | 2.37 | 2.94 |
There are various types of dividends Cognizant Technology can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Cognizant shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Cognizant Technology Solutions directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Cognizant pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Cognizant Technology by the value of the dividends paid out.
Cognizant Technology Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 497 M | |
| Quarterly Earnings Growth Y O Y | -0.012 | |
| Forward Price Earnings | 16.9205 |
Cognizant Technology Current Valuation Indicators
Valuation refers to the process of determining the present value of Cognizant Technology Solutions and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Cognizant we look at many different elements of the entity such as Cognizant's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Cognizant Technology, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Cognizant Technology's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Cognizant Technology's worth.Complementary Tools for Cognizant Stock analysis
When running Cognizant Technology's price analysis, check to measure Cognizant Technology's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cognizant Technology is operating at the current time. Most of Cognizant Technology's value examination focuses on studying past and present price action to predict the probability of Cognizant Technology's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cognizant Technology's price. Additionally, you may evaluate how the addition of Cognizant Technology to your portfolios can decrease your overall portfolio volatility.
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