The fair value of requested stock should be $99.54
* Note: Prices are in Million (M) USD.
These criteria used Company’s Cash, EBITDA and Debt balance to determines its fair value:
Cash : $2,240 M
Debt : $1,500 M
EBITDA : $3,520 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Information Technology Services
Based on sector, 5 points assigned.
This criteria used Company’s Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 13.96
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $1,326 M
Average Revenue: $10,750 M
Free Cash Flow to Revenue : 12 %
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $19,736 M
Revenue 4 Years Ago (2020-12-31): $16,652 M
Revenue Growth: 4%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $497 M
Share Count 5 Years Ago (2020-12-31): $541 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Earnings Per Share (EPS): $5.17
Dividend Per Share (DPS): $1
Payout Ratio: 23%
Dividend Yield: 2%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 1, 1 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 19%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $72
52-Week Low: $63
Threshold Price (15% Above 52-Week Low): $73
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $34,707 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the calculated score, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 33 points to above Cognizant Technology Solutions Corp Class A (CTSH) stock.
Twenty Years Avg PE 24, Fair Value PE 25, Industry Based PE is 25 and Growth based PE is 15. Based on these all values average assigned is 22.25.
Value-Trades has assined P/E value 22.25. Since current year earning per share is $5.17.
The fair value of Cognizant Technology Solutions Corp Class A (CTSH) stock should be (22.25 x $5.17) = $115.03
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