CTSH - Cognizant Technology Solutions Corporation
Price:
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CONSENSUS:
Hold
DETAILS
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PRICE TARGET:
$68.85
DETAILS
HIGH:
$100.00
LOW:
$44.00
MEDIAN:
$68.00
CONSENSUS:
$68.85
UPSIDE:
61.73%
AlphaVal
Deterministic, archetype-aware fair value
Stable Earnings Power
65% confidence
Primary model: P/Adj-EPS × Normalized Multiple
Adjust Assumptions
15.0x
4.73$
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