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
Stock DCF: 88.90 | 62.6 | undervalue

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 16,12516,78316,65218,50719,42820,371.0521,359.8822,396.7123,483.8724,623.80
Revenue (%)
Operating Cash Flow 2,5922,4993,2992,4952,5683,156.513,309.733,470.393,638.843,815.47
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 2,2152,1072,9012,2162,2362,737.672,870.563,009.903,1563,309.20

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 16,12516,78316,65218,50719,42820,371.0521,359.8822,396.7123,483.8724,623.80
Operating Cash Flow 2,5922,4993,2992,4952,5683,156.513,309.733,470.393,638.843,815.47
Capital Expenditure -377-392-398-279-332-418.84-439.17-460.49-482.84-506.27
Free Cash Flow 2,2152,1072,9012,2162,2362,737.672,870.563,009.903,1563,309.20
WACC
PV LFCF 2,520.412,433.032,348.672,267.242,188.64
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