Cognizant Technology Solutions Valuation
Is CTSH * undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation 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 * (MX$1118.55) is trading below our estimate of fair value (MX$1607.24)
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.
What is CTSH *'s n/a Ratio? | |
---|---|
n/a | 0x |
n/a | n/a |
Market Cap | US$33.30b |
Key Statistics | |
---|---|
Enterprise Value/Revenue | 1.7x |
Enterprise Value/EBITDA | 9.4x |
PEG Ratio | 1.8x |
Price to Earnings Ratio vs Peers
How does CTSH *'s PE Ratio compare to its peers?
Company | Forward PE | Estimated Growth | Market Cap |
---|---|---|---|
Peer Average | 25.8x | ||
IT Gartner | 42.8x | 9.1% | US$34.1b |
6702 Fujitsu | 17x | 3.5% | JP¥4.3t |
CAP Capgemini | 21.2x | 9.9% | €35.2b |
HCLTECH HCL Technologies | 22.5x | 9.1% | ₹3.6t |
CTSH * Cognizant Technology Solutions | 15.9x | 9.0% | Mex$33.3b |
Price-To-Earnings vs Peers: CTSH * is good value based on its Price-To-Earnings Ratio (15.9x) compared to the peer average (25.8x).
Price to Earnings Ratio vs Industry
How does CTSH *'s PE Ratio compare vs other companies in the Global IT Industry?
Price-To-Earnings vs Industry: CTSH * is good value based on its Price-To-Earnings Ratio (15.9x) compared to the Global IT industry average (22.5x).
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.
Fair Ratio | |
---|---|
Current PE Ratio | 15.9x |
Fair PE Ratio | n/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?
Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
---|---|---|---|---|---|---|---|
Current | Mex$1,118.55 | Mex$1,307.80 +16.9% | 9.6% | Mex$1,588.80 | Mex$1,098.64 | n/a | 24 |
May ’25 | Mex$1,105.00 | Mex$1,335.89 +20.9% | 9.8% | Mex$1,609.92 | Mex$1,096.12 | n/a | 25 |
Apr ’25 | n/a | Mex$1,315.81 0% | 10.1% | Mex$1,563.36 | Mex$1,081.05 | n/a | 26 |
Mar ’25 | n/a | Mex$1,343.76 0% | 11.3% | Mex$1,609.09 | Mex$1,112.67 | n/a | 26 |
Feb ’25 | n/a | Mex$1,312.88 0% | 10.7% | Mex$1,618.92 | Mex$1,119.46 | n/a | 26 |
Jan ’25 | n/a | Mex$1,241.01 0% | 10.2% | Mex$1,596.34 | Mex$1,018.94 | n/a | 26 |
Dec ’24 | n/a | Mex$1,233.68 0% | 10.2% | Mex$1,615.82 | Mex$1,031.38 | n/a | 26 |
Nov ’24 | Mex$1,177.00 | Mex$1,337.74 +13.7% | 10.1% | Mex$1,697.03 | Mex$1,101.26 | n/a | 24 |
Oct ’24 | n/a | Mex$1,245.20 0% | 10.8% | Mex$1,604.90 | Mex$1,041.48 | n/a | 24 |
Sep ’24 | n/a | Mex$1,226.09 0% | 9.8% | Mex$1,590.68 | Mex$1,032.25 | n/a | 25 |
Aug ’24 | n/a | Mex$1,130.51 0% | 12.1% | Mex$1,518.01 | Mex$900.80 | n/a | 25 |
Jul ’24 | Mex$1,100.00 | Mex$1,147.37 +4.3% | 13.9% | Mex$1,557.19 | Mex$906.94 | n/a | 25 |
Jun ’24 | Mex$1,097.33 | Mex$1,187.71 +8.2% | 14.1% | Mex$1,610.89 | Mex$938.21 | n/a | 24 |
May ’24 | n/a | Mex$1,194.43 0% | 15.7% | Mex$1,631.50 | Mex$878.50 | Mex$1,105.00 | 23 |
Apr ’24 | n/a | Mex$1,222.49 0% | 14.8% | Mex$1,640.04 | Mex$883.10 | n/a | 22 |
Mar ’24 | n/a | Mex$1,253.54 0% | 15.3% | Mex$1,697.83 | Mex$914.22 | n/a | 23 |
Feb ’24 | Mex$1,213.25 | Mex$1,216.16 +0.2% | 16.7% | Mex$1,745.54 | Mex$844.61 | n/a | 23 |
Jan ’24 | n/a | Mex$1,270.36 0% | 16.0% | Mex$1,826.97 | Mex$884.02 | n/a | 21 |
Dec ’23 | n/a | Mex$1,265.71 0% | 16.6% | Mex$1,799.87 | Mex$870.90 | n/a | 21 |
Nov ’23 | n/a | Mex$1,445.51 0% | 15.6% | Mex$1,902.18 | Mex$1,089.79 | Mex$1,177.00 | 21 |
Oct ’23 | n/a | Mex$1,559.30 0% | 15.1% | Mex$1,973.57 | Mex$1,107.62 | n/a | 21 |
Sep ’23 | n/a | Mex$1,558.71 0% | 13.9% | Mex$1,948.87 | Mex$1,093.75 | n/a | 21 |
Aug ’23 | n/a | Mex$1,613.12 0% | 13.8% | Mex$1,997.64 | Mex$1,121.13 | n/a | 22 |
Jul ’23 | n/a | Mex$1,803.73 0% | 10.7% | Mex$2,073.29 | Mex$1,368.77 | Mex$1,100.00 | 23 |
Jun ’23 | Mex$1,718.00 | Mex$1,801.64 +4.9% | 9.6% | Mex$2,043.13 | Mex$1,348.86 | Mex$1,097.33 | 23 |
May ’23 | n/a | Mex$1,915.91 0% | 7.0% | Mex$2,245.40 | Mex$1,664.00 | n/a | 23 |
Analyst Forecast: Target price is less than 20% higher than the current share price.