Cognizant Technology Solutions Corporation logo CTSH - Cognizant Technology Solutions Corporation

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 22
HOLD 24
SELL 5
STRONG
SELL
0
| PRICE TARGET: $68.85 DETAILS
HIGH: $100.00
LOW: $44.00
MEDIAN: $68.00
CONSENSUS: $68.85
UPSIDE: 61.73%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 65% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Undervalued Moderate
Trading 39.4% below fair value
Current Price $42.57
Bear Case $56.17 32.0% upside ($56.17 - $42.57) / $42.57 = 32.0% $4.73 × 12x P/E
Fair Value $70.21 64.9% upside ($70.21 - $42.57) / $42.57 = 64.9% $4.73 × 15x P/E
Bull Case $84.25 97.9% upside ($84.25 - $42.57) / $42.57 = 97.9% $4.73 × 18x P/E

Adjust Assumptions

15.0x
4.73$

Key Value Driver

Normalized P/E multiple (15x base case)

Implied Market Multiple 9.0x

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 $68.85 from 51 analysts, using a 35% weight on analyst consensus. That produces an estimated intrinsic value of $70.21 per share.

Warnings

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