| Intrinsic Valuation of: CTSH | |||||||||||
| Free Cash Flow Average and Growth over past 5Y | Key Statistics | ||||||||||
| Year | FCF | FCF (FCF/Revenue) | |||||||||
| 2020 | - | - | EPS (FY) | 5 | Market Cap | $22B | |||||
| 2021 | - | - (-) | P/E Ratio | 10 | Total Asset | $21B | |||||
| 2022 | $2B | - (-) | Net Income | $2B | Total Debt | $543M | |||||
| 2023 | $2B | -10.0% (-9.6%) | EBITDA | $4B | Total Liab | $6B | |||||
| 2024 | $2B | -9.2% (-11.0%) | Opr Margin | 15.76 | Debt/Equity | 0.04 | |||||
| 2025 | $3B | 42.0% (32.8%) | PreTax Margin | 15.59 | BV/Share | 14 | |||||
| 5Y Average FCF | $2B | 4.8% (4.1%) | |||||||||
| Overall Market Assumptions: | |||||||||||
| Assumptions: | P/E for No-Growth Company: | 7.0 | |||||||||
| Perpetual Growth Rate (g): | 2.48% | Historical US Bond Yield: | 4.40% | ||||||||
| Discount Rate (WACC): | 7.82% | Current US Bond Yield: | 3.48% | ||||||||
| Forcasting Future Free Cash Flow for next 6Y | Modified Benjamin Graham's Intrinsic Value | ||||||||||
| Year | FCF Projection (4.8%) | ||||||||||
| 2026 | $3B | MBG Intrinsic Value | $41 | ||||||||
| 2027 | $3B | ||||||||||
| 2028 | $3B | ||||||||||
| 2029 | $3B | ||||||||||
| 2030 | $3B | ||||||||||
| 2031 | $3B | ||||||||||
| Terminal Value | $59B | Net Worth/Share | $32 | ||||||||
| DCF Valuation | DCF Valuation "What If" Scenario Table | ||||||||||
| Enterprise Value | $50B | Growth Rate | |||||||||
| (+) Cash & Cash Equivalents | $2B | $109 | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | ||||
| (-) Total Debt | $543M | WACC | 6.5% | 121 | 131 | 144 | 161 | 183 | |||
| Equity Value | $52B | 7.3% | 104 | 111 | 120 | 131 | 144 | ||||
| Shares Outstanding | 473,000,000 | 8.2% | 91 | 97 | 103 | 110 | 119 | ||||
| 9.0% | 82 | 86 | 90 | 95 | 102 | ||||||
| DCF Intrinsic Value | $109 | 9.8% | 74 | 77 | 80 | 84 | 89 | ||||
| Analyzed by QuantJuice (2025) | |||||||||||