Cognizant Technology Solutions Corporation

SWX:CTSH Stock Report

Market Cap: CHF30.5b

Cognizant Technology Solutions Valuation

Is CTSH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CTSH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CTSH (CHF62.32) is trading below our estimate of fair value (CHF130.29)

Significantly Below Fair Value: CTSH is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CTSH?

Other financial metrics that can be useful for relative valuation.

CTSH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.7x
Enterprise Value/EBITDA9.4x
PEG Ratio1.9x

Price to Earnings Ratio vs Peers

How does CTSH's PE Ratio compare to its peers?

The above table shows the PE ratio for CTSH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25x
IT Gartner
39.6x5.9%US$34.9b
6702 Fujitsu
17.5x3.9%JP¥4.5t
CAP Capgemini
20.9x9.9%€34.8b
507685 Wipro
22x8.7%₹2.4t
CTSH Cognizant Technology Solutions
15.7x8.2%CHF33.3b

Price-To-Earnings vs Peers: CTSH is good value based on its Price-To-Earnings Ratio (15.7x) compared to the peer average (25x).

Price to Earnings Ratio vs Industry

How does CTSH's PE Ratio compare vs other companies in the European IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.3%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.3%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: CTSH is good value based on its Price-To-Earnings Ratio (15.7x) compared to the European IT industry average (19.5x).

Price to Earnings Ratio vs Fair Ratio

What is CTSH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CTSH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CTSH's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CTSH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF62.32
CHF71.57
+14.8%
9.9%CHF85.90CHF58.49n/a25
Apr ’25CHF62.32
CHF71.56
+14.8%
10.1%CHF85.02CHF58.79n/a26
Mar ’25CHF62.32
CHF69.17
+11.0%
11.3%CHF82.83CHF57.28n/a26
Feb ’25CHF62.32
CHF65.66
+5.4%
10.7%CHF80.97CHF55.99n/a26
Jan ’25CHF62.32
CHF62.37
+0.07%
10.2%CHF80.22CHF51.21n/a26
Dec ’24CHF62.32
CHF63.46
+1.8%
10.2%CHF83.12CHF53.05n/a26
Nov ’24CHF62.32
CHF66.81
+7.2%
10.1%CHF84.75CHF55.00n/a24
Oct ’24CHF62.32
CHF65.48
+5.1%
10.8%CHF84.39CHF54.76n/a24
Sep ’24CHF62.32
CHF63.80
+2.4%
9.8%CHF82.77CHF53.71n/a25
Aug ’24CHF62.32
CHF58.92
-5.5%
12.1%CHF79.11CHF46.95n/a25
Jul ’24CHF62.32
CHF60.33
-3.2%
13.9%CHF81.88CHF47.69n/a25
Jun ’24CHF62.32
CHF60.72
-2.6%
14.1%CHF82.35CHF47.96n/a24
May ’24CHF62.32
CHF59.71
-4.2%
15.7%CHF81.55CHF43.91n/a23
Apr ’24CHF62.32
CHF62.05
-0.4%
14.8%CHF83.24CHF44.82CHF62.3222
Mar ’24CHF62.32
CHF62.07
-0.4%
15.3%CHF84.07CHF45.27CHF62.3223
Feb ’24CHF62.32
CHF59.95
-3.8%
16.7%CHF86.05CHF41.64CHF62.3223
Jan ’24CHF62.32
CHF59.93
-3.8%
16.0%CHF86.18CHF41.70CHF62.3221
Dec ’23CHF62.32
CHF61.61
-1.1%
16.6%CHF87.61CHF42.39CHF62.3221
Nov ’23CHF62.32
CHF73.05
+17.2%
15.6%CHF96.13CHF55.07CHF62.3221
Oct ’23CHF62.32
CHF76.40
+22.6%
15.1%CHF96.70CHF54.27CHF62.3221
Sep ’23CHF62.32
CHF75.75
+21.6%
13.9%CHF94.71CHF53.16CHF62.3221
Aug ’23CHF62.32
CHF75.34
+20.9%
13.8%CHF93.29CHF52.36CHF62.3222
Jul ’23CHF62.32
CHF85.78
+37.6%
10.7%CHF98.60CHF65.09CHF62.3223
Jun ’23CHF62.32
CHF87.29
+40.1%
9.6%CHF98.99CHF65.35CHF62.3223
May ’23CHF62.32
CHF89.25
+43.2%
7.0%CHF104.60CHF77.52CHF62.3223
Apr ’23CHF62.32
CHF88.68
+42.3%
7.2%CHF103.60CHF76.77CHF62.3223

Analyst Forecast: Target price is less than 20% higher than the current share price.

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