Discounted Cash Flow (DCF) Analysis Levered

Cognizant Technology Solutions Corp... (CTSH)

$68.03

+0.54 (+0.80%)
All numbers are in Millions, Currency in USD
Stock DCF: 102.98 | 68.03 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 14,81016,12516,78316,65218,50719,585.9120,727.7221,936.1023,214.9224,568.29
Revenue (%)
Operating Cash Flow 2,4072,5922,4993,2992,4953,153.723,337.573,532.143,738.063,955.98
Operating Cash Flow (%)
Capital Expenditure -284-377-392-398-279-410.87-434.82-460.17-487-515.39
Capital Expenditure (%)
Free Cash Flow 2,1232,2152,1072,9012,2162,742.852,902.753,071.973,251.063,440.59

Weighted Average Cost Of Capital

Share price $ 68.03
Beta 1.108
Diluted Shares Outstanding 526
Cost of Debt
Tax Rate 24.41
After-tax Cost of Debt 0.42%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.121
Total Debt 1,642
Total Equity 35,783.78
Total Capital 37,425.78
Debt Weighting 4.39
Equity Weighting 95.61
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 14,81016,12516,78316,65218,50719,585.9120,727.7221,936.1023,214.9224,568.29
Operating Cash Flow 2,4072,5922,4993,2992,4953,153.723,337.573,532.143,738.063,955.98
Capital Expenditure -284-377-392-398-279-410.87-434.82-460.17-487-515.39
Free Cash Flow 2,1232,2152,1072,9012,2162,742.852,902.753,071.973,251.063,440.59
WACC
PV LFCF 2,544.862,498.812,453.592,409.202,365.60
SUM PV LFCF 12,272.05

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.78
Free cash flow (t + 1) 3,509.40
Terminal Value 60,716.24
Present Value of Terminal Value 41,745.91

Intrinsic Value

Enterprise Value 54,017.97
Net Debt -150
Equity Value 54,167.97
Shares Outstanding 526
Equity Value Per Share 102.98