CTSH Cognizant
Intrinsic value$71.86
Price (at call)$58.32
Margin of safety
+23.2%
vs market (rating basis)
+106.3%
Model unavailable; showing baseline valuation.
⚠ LLM error: unbalanced JSON in response: '{\n "story": "Cognizant is a mature IT services and consulting firm that lost its premium-growth mantle years ago, now growing 2-3% annually in a commoditizing, people-based industry. Its moat is thin'; using baseline
The story
Value drivers
| Revenue growth (Y1) | 3.0% |
| Terminal growth | 3.5% |
| Forecast horizon | 10y |
| Target operating margin | 16.4% |
| Years to target margin | 5 |
| Sales-to-capital | 1.39 |
| Beta | 0.83 |
| Failure probability | 0.0% |
| Cost of capital (WACC) | 8.6% |
| Terminal WACC | 9.3% |
Valuation bridge
| PV of explicit FCFF | 13.84B |
| PV of terminal value | 18.83B |
| Equity value | 33.99B |
| ÷ shares → per share | $71.86 |
News
neutral +0.15 · 8 articles
- What Is The Market Seeing In Accenture Stock That You Are Not?
- Cognizant (CTSH): Can 17 AI Agents Turn Productivity Into Revenue?
- Is Accenture's Business Falling As Fast As Its Stock?
- Why Is Amdocs (DOX) Up 7% Since Last Earnings Report?
- The Business Accenture Now Mentions In Passing
- Why Is Wix.com (WIX) Up 34.3% Since Last Earnings Report?
- ACN Got Cheaper. The Business Did Not Get Worse
- Why CrowdStrike (CRWD) Stock Is Trading Up Today
Projected free cash flow to the firm
| Yr | Revenue | Growth | Margin | NOPAT | Reinvest | FCFF | PV |
|---|---|---|---|---|---|---|---|
| 1 | 22.29B | 3.0% | 16.4% | 2.37B | 467.73M | 1.90B | 1.75B |
| 2 | 22.97B | 3.1% | 16.4% | 2.44B | 490.68M | 1.95B | 1.66B |
| 3 | 23.69B | 3.1% | 16.4% | 2.52B | 514.87M | 2.01B | 1.57B |
| 4 | 24.44B | 3.2% | 16.4% | 2.60B | 540.37M | 2.06B | 1.48B |
| 5 | 25.22B | 3.2% | 16.4% | 2.68B | 567.26M | 2.12B | 1.40B |
| 6 | 26.05B | 3.3% | 16.4% | 2.77B | 595.63M | 2.18B | 1.33B |
| 7 | 26.92B | 3.3% | 16.4% | 2.86B | 625.58M | 2.24B | 1.26B |
| 8 | 27.83B | 3.4% | 16.4% | 2.96B | 657.21M | 2.30B | 1.19B |
| 9 | 28.79B | 3.4% | 16.4% | 3.06B | 690.62M | 2.37B | 1.13B |
| 10 | 29.80B | 3.5% | 16.4% | 3.17B | 725.93M | 2.44B | 1.07B |