| 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 | $40B | |||||
| 2021 | - | - (-) | P/E Ratio | 17 | Total Asset | $20B | |||||
| 2022 | $2B | - (-) | Net Income | $2B | Total Debt | $875M | |||||
| 2023 | $2B | 0.9% (-3.9%) | EBITDA | $4B | Total Liab | $6B | |||||
| 2024 | $2B | -10.0% (-9.6%) | Opr Margin | 0.15 | Debt/Equity | 0.06 | |||||
| 2025 | $2B | -9.2% (-11.0%) | PreTax Margin | 15.06 | BV/Share | 12 | |||||
| 5Y Average FCF | $2B | -6.1% (-8.2%) | |||||||||
| Overall Market Assumptions: | |||||||||||
| Assumptions: | P/E for No-Growth Company: | 7.0 | |||||||||
| Perpetual Growth Rate (g): | 2.5% | Historical US Bond Yield: | 4.4% | ||||||||
| Discount Rate (WACC): | 7.4% | Current US Bond Yield: | 3.5% | ||||||||
| Forcasting Future Free Cash Flow for next 6Y | Modified Benjamin Graham's Intrinsic Value | ||||||||||
| Year | FCF Projection (4.0%) | ||||||||||
| 2026 | $2B | MBG Intrinsic Value | $42 | ||||||||
| 2027 | $2B | ||||||||||
| 2028 | $2B | ||||||||||
| 2029 | $2B | ||||||||||
| 2030 | $2B | ||||||||||
| 2031 | $2B | ||||||||||
| Terminal Value | $48B | Net Worth/Share | $29 | ||||||||
| DCF Valuation | DCF Valuation "What If" Scenario Table | ||||||||||
| Enterprise Value | $41B | Growth Rate | |||||||||
| (+) Cash & Cash Equivalents | $2B | $86 | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | ||||
| (-) Total Debt | $875M | WACC | 7.3% | 76 | 81 | 88 | 96 | 106 | |||
| Equity Value | $42B | 7.4% | 75 | 81 | 87 | 95 | 104 | ||||
| Shares Outstanding | 492,942,016 | 7.4% | 75 | 80 | 86 | 94 | 103 | ||||
| 7.9% | 69 | 73 | 78 | 84 | 92 | ||||||
| DCF Intrinsic Value | $86 | 8.4% | 64 | 68 | 72 | 77 | 83 | ||||
| Analyzed by QuantJuice (2025) | |||||||||||