Intrinsic value of Cognizant Technology Solutions - CTSH

Previous Close

$72.91

  Intrinsic Value

$63.00

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  Rating & Target

hold

-14%

Previous close

$72.91

 
Intrinsic value

$63.00

 
Up/down potential

-14%

 
Rating

hold

We calculate the intrinsic value of CTSH stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 43.1

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  8.63
  8.90
  8.51
  8.16
  7.84
  7.56
  7.30
  7.07
  6.87
  6.68
  6.51
  6.36
  6.22
  6.10
  5.99
  5.89
  5.80
  5.72
  5.65
  5.59
  5.53
  5.47
  5.43
  5.38
  5.35
  5.31
  5.28
  5.25
  5.23
  5.20
  5.18
Revenue, $m
  13,487
  14,687
  15,937
  17,238
  18,590
  19,995
  21,455
  22,972
  24,549
  26,189
  27,894
  29,668
  31,515
  33,438
  35,441
  37,529
  39,707
  41,979
  44,351
  46,828
  49,417
  52,122
  54,950
  57,909
  61,004
  64,244
  67,636
  71,189
  74,910
  78,808
  82,893
Variable operating expenses, $m
 
  12,124
  13,134
  14,184
  15,277
  16,412
  17,592
  18,818
  20,093
  21,418
  22,796
  23,974
  25,466
  27,020
  28,638
  30,326
  32,086
  33,922
  35,839
  37,840
  39,932
  42,118
  44,403
  46,794
  49,295
  51,914
  54,655
  57,525
  60,532
  63,682
  66,983
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  11,198
  12,124
  13,134
  14,184
  15,277
  16,412
  17,592
  18,818
  20,093
  21,418
  22,796
  23,974
  25,466
  27,020
  28,638
  30,326
  32,086
  33,922
  35,839
  37,840
  39,932
  42,118
  44,403
  46,794
  49,295
  51,914
  54,655
  57,525
  60,532
  63,682
  66,983
Operating income, $m
  2,289
  2,564
  2,804
  3,053
  3,313
  3,582
  3,863
  4,154
  4,457
  4,771
  5,099
  5,694
  6,049
  6,418
  6,802
  7,203
  7,621
  8,057
  8,513
  8,988
  9,485
  10,004
  10,547
  11,115
  11,709
  12,331
  12,982
  13,664
  14,378
  15,126
  15,910
EBITDA, $m
  2,668
  3,000
  3,255
  3,521
  3,797
  4,084
  4,382
  4,692
  5,015
  5,349
  5,698
  6,060
  6,437
  6,830
  7,239
  7,666
  8,111
  8,575
  9,059
  9,565
  10,094
  10,647
  11,224
  11,829
  12,461
  13,123
  13,816
  14,541
  15,301
  16,098
  16,932
Interest expense (income), $m
  16
  28
  39
  50
  62
  74
  86
  99
  113
  127
  142
  157
  173
  190
  207
  225
  244
  263
  284
  305
  327
  350
  374
  400
  426
  454
  483
  514
  545
  579
  614
Earnings before tax, $m
  2,357
  2,536
  2,765
  3,003
  3,251
  3,509
  3,776
  4,054
  4,343
  4,644
  4,957
  5,537
  5,876
  6,228
  6,595
  6,978
  7,378
  7,794
  8,229
  8,683
  9,158
  9,654
  10,172
  10,715
  11,283
  11,877
  12,499
  13,150
  13,832
  14,547
  15,296
Tax expense, $m
  805
  685
  746
  811
  878
  947
  1,020
  1,095
  1,173
  1,254
  1,338
  1,495
  1,586
  1,682
  1,781
  1,884
  1,992
  2,104
  2,222
  2,344
  2,473
  2,607
  2,747
  2,893
  3,046
  3,207
  3,375
  3,551
  3,735
  3,928
  4,130
Net income, $m
  1,553
  1,851
  2,018
  2,192
  2,373
  2,561
  2,757
  2,960
  3,171
  3,390
  3,618
  4,042
  4,289
  4,547
  4,815
  5,094
  5,386
  5,690
  6,007
  6,339
  6,685
  7,047
  7,426
  7,822
  8,236
  8,670
  9,124
  9,600
  10,098
  10,620
  11,166

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  5,169
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  14,262
  9,904
  10,747
  11,623
  12,535
  13,483
  14,467
  15,490
  16,554
  17,659
  18,809
  20,006
  21,251
  22,547
  23,898
  25,306
  26,775
  28,307
  29,906
  31,577
  33,322
  35,146
  37,053
  39,048
  41,136
  43,321
  45,608
  48,003
  50,512
  53,141
  55,896
Adjusted assets (=assets-cash), $m
  9,093
  9,904
  10,747
  11,623
  12,535
  13,483
  14,467
  15,490
  16,554
  17,659
  18,809
  20,006
  21,251
  22,547
  23,898
  25,306
  26,775
  28,307
  29,906
  31,577
  33,322
  35,146
  37,053
  39,048
  41,136
  43,321
  45,608
  48,003
  50,512
  53,141
  55,896
Revenue / Adjusted assets
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
  1.483
Average production assets, $m
  1,934
  2,100
  2,279
  2,465
  2,658
  2,859
  3,068
  3,285
  3,511
  3,745
  3,989
  4,243
  4,507
  4,782
  5,068
  5,367
  5,678
  6,003
  6,342
  6,696
  7,067
  7,453
  7,858
  8,281
  8,724
  9,187
  9,672
  10,180
  10,712
  11,270
  11,854
Working capital, $m
  6,182
  1,190
  1,291
  1,396
  1,506
  1,620
  1,738
  1,861
  1,989
  2,121
  2,259
  2,403
  2,553
  2,708
  2,871
  3,040
  3,216
  3,400
  3,592
  3,793
  4,003
  4,222
  4,451
  4,691
  4,941
  5,204
  5,479
  5,766
  6,068
  6,383
  6,714
Total debt, $m
  878
  1,107
  1,428
  1,761
  2,107
  2,467
  2,842
  3,230
  3,634
  4,055
  4,492
  4,946
  5,419
  5,912
  6,425
  6,960
  7,518
  8,101
  8,708
  9,343
  10,006
  10,700
  11,424
  12,182
  12,976
  13,806
  14,675
  15,585
  16,539
  17,538
  18,584
Total liabilities, $m
  3,534
  3,763
  4,084
  4,417
  4,763
  5,123
  5,498
  5,886
  6,290
  6,711
  7,148
  7,602
  8,075
  8,568
  9,081
  9,616
  10,174
  10,757
  11,364
  11,999
  12,662
  13,356
  14,080
  14,838
  15,632
  16,462
  17,331
  18,241
  19,195
  20,194
  21,240
Total equity, $m
  10,728
  6,140
  6,663
  7,207
  7,772
  8,359
  8,970
  9,604
  10,263
  10,949
  11,662
  12,403
  13,175
  13,979
  14,817
  15,690
  16,600
  17,550
  18,542
  19,578
  20,660
  21,791
  22,973
  24,210
  25,504
  26,859
  28,277
  29,762
  31,318
  32,947
  34,655
Total liabilities and equity, $m
  14,262
  9,903
  10,747
  11,624
  12,535
  13,482
  14,468
  15,490
  16,553
  17,660
  18,810
  20,005
  21,250
  22,547
  23,898
  25,306
  26,774
  28,307
  29,906
  31,577
  33,322
  35,147
  37,053
  39,048
  41,136
  43,321
  45,608
  48,003
  50,513
  53,141
  55,895
Debt-to-equity ratio
  0.082
  0.180
  0.210
  0.240
  0.270
  0.300
  0.320
  0.340
  0.350
  0.370
  0.390
  0.400
  0.410
  0.420
  0.430
  0.440
  0.450
  0.460
  0.470
  0.480
  0.480
  0.490
  0.500
  0.500
  0.510
  0.510
  0.520
  0.520
  0.530
  0.530
  0.540
Adjusted equity ratio
  0.611
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620
  0.620

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,553
  1,851
  2,018
  2,192
  2,373
  2,561
  2,757
  2,960
  3,171
  3,390
  3,618
  4,042
  4,289
  4,547
  4,815
  5,094
  5,386
  5,690
  6,007
  6,339
  6,685
  7,047
  7,426
  7,822
  8,236
  8,670
  9,124
  9,600
  10,098
  10,620
  11,166
Depreciation, amort., depletion, $m
  379
  436
  452
  468
  485
  502
  520
  539
  558
  578
  599
  366
  389
  412
  437
  463
  489
  518
  547
  577
  609
  643
  677
  714
  752
  792
  834
  878
  923
  972
  1,022
Funds from operations, $m
  1,150
  2,288
  2,470
  2,660
  2,858
  3,063
  3,277
  3,498
  3,729
  3,968
  4,218
  4,408
  4,678
  4,959
  5,252
  5,557
  5,875
  6,207
  6,554
  6,916
  7,294
  7,690
  8,103
  8,536
  8,988
  9,462
  9,958
  10,477
  11,021
  11,591
  12,188
Change in working capital, $m
  -471
  97
  101
  105
  110
  114
  118
  123
  128
  133
  138
  144
  150
  156
  162
  169
  176
  184
  192
  201
  210
  219
  229
  240
  251
  262
  275
  288
  301
  316
  331
Cash from operations, $m
  1,621
  2,190
  2,369
  2,555
  2,748
  2,949
  3,158
  3,375
  3,601
  3,836
  4,079
  4,264
  4,528
  4,803
  5,089
  5,388
  5,699
  6,023
  6,362
  6,715
  7,085
  7,471
  7,874
  8,296
  8,738
  9,200
  9,683
  10,189
  10,720
  11,275
  11,857
Maintenance CAPEX, $m
  0
  -167
  -181
  -196
  -212
  -229
  -246
  -264
  -283
  -303
  -323
  -344
  -366
  -389
  -412
  -437
  -463
  -489
  -518
  -547
  -577
  -609
  -643
  -677
  -714
  -752
  -792
  -834
  -878
  -923
  -972
New CAPEX, $m
  -300
  -166
  -179
  -186
  -193
  -201
  -209
  -217
  -226
  -234
  -244
  -254
  -264
  -275
  -286
  -299
  -311
  -325
  -339
  -354
  -370
  -387
  -404
  -423
  -443
  -463
  -485
  -508
  -532
  -557
  -584
Cash from investing activities, $m
  -963
  -333
  -360
  -382
  -405
  -430
  -455
  -481
  -509
  -537
  -567
  -598
  -630
  -664
  -698
  -736
  -774
  -814
  -857
  -901
  -947
  -996
  -1,047
  -1,100
  -1,157
  -1,215
  -1,277
  -1,342
  -1,410
  -1,480
  -1,556
Free cash flow, $m
  658
  1,857
  2,009
  2,172
  2,342
  2,519
  2,703
  2,894
  3,092
  3,298
  3,513
  3,667
  3,898
  4,140
  4,391
  4,652
  4,925
  5,209
  5,505
  5,814
  6,137
  6,475
  6,827
  7,196
  7,581
  7,984
  8,406
  8,848
  9,310
  9,794
  10,302
Issuance/(repayment) of debt, $m
  -407
  310
  320
  333
  346
  360
  374
  389
  404
  420
  437
  455
  473
  493
  513
  535
  558
  582
  608
  635
  663
  693
  725
  758
  793
  830
  869
  910
  953
  999
  1,047
Issuance/(repurchase) of shares, $m
  -336
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -719
  310
  320
  333
  346
  360
  374
  389
  404
  420
  437
  455
  473
  493
  513
  535
  558
  582
  608
  635
  663
  693
  725
  758
  793
  830
  869
  910
  953
  999
  1,047
Total cash flow (excl. dividends), $m
  -91
  2,168
  2,329
  2,506
  2,689
  2,879
  3,077
  3,283
  3,496
  3,719
  3,950
  4,121
  4,372
  4,632
  4,904
  5,187
  5,483
  5,791
  6,113
  6,449
  6,801
  7,168
  7,552
  7,954
  8,374
  8,814
  9,275
  9,758
  10,263
  10,793
  11,348
Retained Cash Flow (-), $m
  -1,450
  -500
  -523
  -544
  -565
  -587
  -610
  -634
  -659
  -685
  -713
  -742
  -772
  -804
  -838
  -873
  -910
  -950
  -992
  -1,036
  -1,082
  -1,131
  -1,183
  -1,237
  -1,294
  -1,355
  -1,418
  -1,485
  -1,556
  -1,630
  -1,708
Prev. year cash balance distribution, $m
 
  5,088
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  6,755
  1,807
  1,962
  2,124
  2,292
  2,467
  2,648
  2,837
  3,033
  3,237
  3,380
  3,600
  3,828
  4,066
  4,314
  4,572
  4,841
  5,121
  5,414
  5,719
  6,037
  6,369
  6,717
  7,080
  7,460
  7,857
  8,273
  8,708
  9,163
  9,641
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  6,477
  1,654
  1,707
  1,749
  1,776
  1,790
  1,789
  1,773
  1,742
  1,697
  1,605
  1,536
  1,456
  1,365
  1,267
  1,162
  1,053
  943
  834
  727
  624
  528
  440
  361
  290
  229
  178
  135
  100
  73
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Cognizant Technology Solutions Corporation is a professional services company. The Company operates through four segments: Financial Services, Healthcare, Manufacturing/Retail/Logistics, and Other. The Financial Services segment includes customers providing banking/transaction processing, capital markets and insurance services. The Healthcare segment includes healthcare providers and payers, as well as life sciences customers, including pharmaceutical, biotech and medical device companies. The Manufacturing/Retail/Logistics segment includes manufacturers, retailers, travel and other hospitality customers, as well as customers providing logistics services. The Other segment includes its information, media and entertainment services, communications and high technology operating segments. Its services include consulting and technology services and outsourcing services. Its outsourcing services include application maintenance, IT infrastructure services and business process services.

FINANCIAL RATIOS  of  Cognizant Technology Solutions (CTSH)

Valuation Ratios
P/E Ratio 28.5
Price to Sales 3.3
Price to Book 4.1
Price to Tangible Book
Price to Cash Flow 27.3
Price to Free Cash Flow 33.6
Growth Rates
Sales Growth Rate 8.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 9.9%
Cap. Spend. - 3 Yr. Gr. Rate 2.7%
Financial Strength
Quick Ratio 64
Current Ratio 0.2
LT Debt to Equity 7.4%
Total Debt to Equity 8.2%
Interest Coverage 148
Management Effectiveness
Return On Assets 11.4%
Ret/ On Assets - 3 Yr. Avg. 13.1%
Return On Total Capital 14%
Ret/ On T. Cap. - 3 Yr. Avg. 16.3%
Return On Equity 15.5%
Return On Equity - 3 Yr. Avg. 18.5%
Asset Turnover 1
Profitability Ratios
Gross Margin 40.5%
Gross Margin - 3 Yr. Avg. 40.7%
EBITDA Margin 20.4%
EBITDA Margin - 3 Yr. Avg. 20.5%
Operating Margin 17%
Oper. Margin - 3 Yr. Avg. 17.5%
Pre-Tax Margin 17.5%
Pre-Tax Margin - 3 Yr. Avg. 17.9%
Net Profit Margin 11.5%
Net Profit Margin - 3 Yr. Avg. 12.9%
Effective Tax Rate 34.2%
Eff/ Tax Rate - 3 Yr. Avg. 28.1%
Payout Ratio 0%

CTSH stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CTSH stock intrinsic value calculation we used $13487 million for the last fiscal year's total revenue generated by Cognizant Technology Solutions. The default revenue input number comes from 2016 income statement of Cognizant Technology Solutions. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our CTSH stock valuation model: a) initial revenue growth rate of 8.9% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for CTSH is calculated based on our internal credit rating of Cognizant Technology Solutions, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Cognizant Technology Solutions.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of CTSH stock the variable cost ratio is equal to 82.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for CTSH stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Cognizant Technology Solutions.

Corporate tax rate of 27% is the nominal tax rate for Cognizant Technology Solutions. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the CTSH stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for CTSH are equal to 14.3%.

Life of production assets of 11.6 years is the average useful life of capital assets used in Cognizant Technology Solutions operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for CTSH is equal to 8.1%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $10728 million for Cognizant Technology Solutions - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 590.642 million for Cognizant Technology Solutions is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Cognizant Technology Solutions at the current share price and the inputted number of shares is $43.1 billion.

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Financial statements of CTSH
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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