Discounted Cash Flow (DCF) Analysis Levered
Cognizant Technology Solutions Corp... (CTSH)
$72.74
+1.05 (+1.46%)
All numbers are in Millions, Currency in USD
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 | 14,810 | 16,125 | 16,783 | 16,652 | 18,507 | 19,585.91 | 20,727.72 | 21,936.10 | 23,214.92 | 24,568.29 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 2,407 | 2,592 | 2,499 | 3,299 | 2,495 | 3,153.72 | 3,337.57 | 3,532.14 | 3,738.06 | 3,955.98 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -284 | -377 | -392 | -398 | -279 | -410.87 | -434.82 | -460.17 | -487 | -515.39 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 2,123 | 2,215 | 2,107 | 2,901 | 2,216 | 2,742.85 | 2,902.75 | 3,071.97 | 3,251.06 | 3,440.59 |
Weighted Average Cost Of Capital
Share price | $ 72.74 |
---|---|
Beta | 1.103 |
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 | 7.961 |
Total Debt | 1,642 |
Total Equity | 38,261.24 |
Total Capital | 39,903.24 |
Debt Weighting | 4.11 |
Equity Weighting | 95.89 |
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 | 14,810 | 16,125 | 16,783 | 16,652 | 18,507 | 19,585.91 | 20,727.72 | 21,936.10 | 23,214.92 | 24,568.29 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 2,407 | 2,592 | 2,499 | 3,299 | 2,495 | 3,153.72 | 3,337.57 | 3,532.14 | 3,738.06 | 3,955.98 |
Capital Expenditure | -284 | -377 | -392 | -398 | -279 | -410.87 | -434.82 | -460.17 | -487 | -515.39 |
Free Cash Flow | 2,123 | 2,215 | 2,107 | 2,901 | 2,216 | 2,742.85 | 2,902.75 | 3,071.97 | 3,251.06 | 3,440.59 |
WACC | ||||||||||
PV LFCF | 2,547.93 | 2,504.85 | 2,462.49 | 2,420.85 | 2,379.92 | |||||
SUM PV LFCF | 12,316.04 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 7.65 |
Free cash flow (t + 1) | 3,509.40 |
Terminal Value | 62,113.25 |
Present Value of Terminal Value | 42,964.93 |
Intrinsic Value
Enterprise Value | 55,280.97 |
---|---|
Net Debt | -150 |
Equity Value | 55,430.97 |
Shares Outstanding | 526 |
Equity Value Per Share | 105.38 |