Cognizant Technology Solutions Corporation logo CTSH - Cognizant Technology Solutions Corporation

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY 0
BUY 21
HOLD 25
SELL 5
STRONG
SELL 0
| PRICE TARGET: $81.75 DETAILS
HIGH: $107.00
LOW: $56.00
MEDIAN: $79.00
CONSENSUS: $81.75
UPSIDE: 54.98%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 65% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Undervalued Moderate
Trading 29.4% below fair value
Current Price $52.75
Bear Case $59.79 13.3% upside ($59.79 - $52.75) / $52.75 = 13.3% $4.73 × 12x P/E
Fair Value $74.72 41.7% upside ($74.72 - $52.75) / $52.75 = 41.7% $4.73 × 15x P/E
Bull Case $89.67 70.0% upside ($89.67 - $52.75) / $52.75 = 70.0% $4.73 × 18x P/E

Adjust Assumptions

15.0x
4.73$

Key Value Driver

Normalized P/E multiple (15x base case)

Implied Market Multiple 11.2x

Plain-Language Summary

Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $81.75 from 51 analysts, using a 35% weight on analyst consensus. That produces an estimated intrinsic value of $74.72 per share.

Warnings

ℹ Dividend-based valuation: $39.93 (below our primary estimate by 44%). Large gaps may signal the dividend doesn't reflect full earning power.

Key Risks

  • Growth DCF inappropriate — terminal value assumptions dominate
  • EV/EBITDA misleading for regulated businesses where capex is mandated
  • Regulatory risk is a fat tail not visible in normal multiples