Discounted Cash Flow (DCF) Analysis Levered
Cognizant Technology Solutions Corp... (CTSH)
$62.6
+0.43 (+0.69%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Revenue | 16,125 | 16,783 | 16,652 | 18,507 | 19,428 | 20,371.05 | 21,359.88 | 22,396.71 | 23,483.87 | 24,623.80 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 2,592 | 2,499 | 3,299 | 2,495 | 2,568 | 3,156.51 | 3,309.73 | 3,470.39 | 3,638.84 | 3,815.47 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -377 | -392 | -398 | -279 | -332 | -418.84 | -439.17 | -460.49 | -482.84 | -506.27 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 2,215 | 2,107 | 2,901 | 2,216 | 2,236 | 2,737.67 | 2,870.56 | 3,009.90 | 3,156 | 3,309.20 |
Weighted Average Cost Of Capital
Share price | $ 62.6 |
---|---|
Beta | 1.102 |
Diluted Shares Outstanding | 519 |
Cost of Debt | |
Tax Rate | 24.07 |
After-tax Cost of Debt | 0.94% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 8.986 |
Total Debt | 1,534 |
Total Equity | 32,489.40 |
Total Capital | 34,023.40 |
Debt Weighting | 4.51 |
Equity Weighting | 95.49 |
Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Revenue | 16,125 | 16,783 | 16,652 | 18,507 | 19,428 | 20,371.05 | 21,359.88 | 22,396.71 | 23,483.87 | 24,623.80 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 2,592 | 2,499 | 3,299 | 2,495 | 2,568 | 3,156.51 | 3,309.73 | 3,470.39 | 3,638.84 | 3,815.47 |
Capital Expenditure | -377 | -392 | -398 | -279 | -332 | -418.84 | -439.17 | -460.49 | -482.84 | -506.27 |
Free Cash Flow | 2,215 | 2,107 | 2,901 | 2,216 | 2,236 | 2,737.67 | 2,870.56 | 3,009.90 | 3,156 | 3,309.20 |
WACC | ||||||||||
PV LFCF | 2,520.41 | 2,433.03 | 2,348.67 | 2,267.24 | 2,188.64 | |||||
SUM PV LFCF | 11,758 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 8.62 |
Free cash flow (t + 1) | 3,375.38 |
Terminal Value | 50,987.66 |
Present Value of Terminal Value | 33,722.21 |
Intrinsic Value
Enterprise Value | 45,480.21 |
---|---|
Net Debt | -657 |
Equity Value | 46,137.21 |
Shares Outstanding | 519 |
Equity Value Per Share | 88.90 |