Discounted Cash Flow

Cognizant Technology Solutions Corp.

CTSH · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income
Dividends

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $-17.3k $1.6b $-3.5b -9000811.4% $2.56
2017 $4.5k (126.0%) $1.5b (-3.2%) $2.1b (159.8%) 33534002.2% (472.6%) $2.54 (-0.8%)
2018 $-62.0k (-1482.5%) $2.1b (39.7%) $2.2b (4.3%) -3388491.1% (-110.1%) $3.61 (42.1%)
2019 $-29.0k (53.3%) $1.8b (-12.3%) $2.1b (-4.9%) -6360716.9% (-87.7%) $3.30 (-8.6%)
2020 $-14.1k (51.4%) $1.4b (-24.4%) $2.9b (37.7%) -9899018.6% (-55.6%) $2.58 (-21.8%)
2021 $38.0k (369.9%) $2.1b (53.5%) $2.2b (-23.6%) 5630351.7% (156.9%) $4.06 (57.4%)
2022 $36.2k (-4.6%) $2.3b (7.2%) $2.2b (0.9%) 6322473.8% (12.3%) $4.42 (8.9%)
2023 $2.1b (-7.2%) $2.0b (-10.0%) $4.21 (-4.8%)
2024 $2.2b (5.4%) $1.8b (-9.2%) $4.52 (7.4%)
2025 $2.2b (-0.4%) $2.6b (42.0%) $4.57 (1.1%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model