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Cognizant Technology Solutions (Cognizant Technology Solutions) Cyclically Adjusted Price-to-FCF : 15.81 (As of May. 26, 2024)


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What is Cognizant Technology Solutions Cyclically Adjusted Price-to-FCF?

As of today (2024-05-26), Cognizant Technology Solutions's current share price is $68.32. Cognizant Technology Solutions's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was $4.32. Cognizant Technology Solutions's Cyclically Adjusted Price-to-FCF for today is 15.81.

The historical rank and industry rank for Cognizant Technology Solutions's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

CTSH' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 13.46   Med: 32.89   Max: 67.86
Current: 15.81

During the past years, Cognizant Technology Solutions's highest Cyclically Adjusted Price-to-FCF was 67.86. The lowest was 13.46. And the median was 32.89.

CTSH's Cyclically Adjusted Price-to-FCF is ranked better than
73.68% of 661 companies
in the Software industry
Industry Median: 29.5 vs CTSH: 15.81

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Cognizant Technology Solutions's adjusted free cash flow per share data for the three months ended in Mar. 2024 was $0.032. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $4.32 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Cognizant Technology Solutions Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Cognizant Technology Solutions's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Cognizant Technology Solutions Cyclically Adjusted Price-to-FCF Chart

Cognizant Technology Solutions Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.63 27.49 25.35 14.36 17.71

Cognizant Technology Solutions Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.60 15.75 16.00 17.71 16.96

Competitive Comparison of Cognizant Technology Solutions's Cyclically Adjusted Price-to-FCF

For the Information Technology Services subindustry, Cognizant Technology Solutions's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Cognizant Technology Solutions's Cyclically Adjusted Price-to-FCF Distribution in the Software Industry

For the Software industry and Technology sector, Cognizant Technology Solutions's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Cognizant Technology Solutions's Cyclically Adjusted Price-to-FCF falls into.



Cognizant Technology Solutions Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Cognizant Technology Solutions's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=68.32/4.32
=15.81

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Cognizant Technology Solutions's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Cognizant Technology Solutions's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=0.032/131.7762*131.7762
=0.032

Current CPI (Mar. 2024) = 131.7762.

Cognizant Technology Solutions Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.604 100.560 0.791
201409 0.862 100.428 1.131
201412 0.406 99.070 0.540
201503 0.214 99.621 0.283
201506 0.620 100.684 0.811
201509 1.229 100.392 1.613
201512 1.062 99.792 1.402
201603 0.013 100.470 0.017
201606 0.478 101.688 0.619
201609 0.869 101.861 1.124
201612 0.848 101.863 1.097
201703 0.348 102.862 0.446
201706 0.780 103.349 0.995
201709 1.174 104.136 1.486
201712 1.277 104.011 1.618
201803 0.496 105.290 0.621
201806 0.937 106.317 1.161
201809 1.324 106.507 1.638
201812 1.043 105.998 1.297
201903 0.283 107.251 0.348
201906 0.849 108.070 1.035
201909 1.125 108.329 1.368
201912 1.534 108.420 1.864
202003 0.705 108.902 0.853
202006 1.638 108.767 1.985
202009 1.512 109.815 1.814
202012 1.512 109.897 1.813
202103 0.175 111.754 0.206
202106 0.883 114.631 1.015
202109 1.705 115.734 1.941
202112 1.439 117.630 1.612
202203 0.354 121.301 0.385
202206 0.931 125.017 0.981
202209 1.843 125.227 1.939
202212 1.193 125.222 1.255
202303 1.240 127.348 1.283
202306 -0.063 128.729 -0.064
202309 1.495 129.860 1.517
202312 1.313 129.419 1.337
202403 0.032 131.776 0.032

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Cognizant Technology Solutions  (NAS:CTSH) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Cognizant Technology Solutions Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Cognizant Technology Solutions's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Cognizant Technology Solutions (Cognizant Technology Solutions) Business Description

Traded in Other Exchanges
Address
300 Frank West Burr Boulevard, Suite 36, 6th Floor, Teaneck, NJ, USA, 07666
Cognizant is a global IT services provider, offering consulting and outsourcing services to some of the world's largest enterprises spanning the financial services, media and communications, healthcare, natural resources, and consumer products industries. Cognizant employs nearly 300,000 people globally, roughly 70% of whom are in India, although the company's headquarters are in Teaneck, New Jersey.
Executives
Michael Patsalos-fox director 300 FRANK W. BURR BLVD., STE. 36, 6 FL., TEANECK NJ 07666
Mackay Leo S. Jr. director C/O COGNIZANT TECHNOLOGY SOLUTIONS CORP., 300 FRANK W. BURR BLVD., STE. 36, 6 FL., TEANECK NJ 07666
Robert C. Walker officer: EVP & Pres, Global Growth Mkts C/O COGNIZANT TECHNOLOGY SOLUTIONS, 300 FRANK W. BURR BOULEVARD, TEANECK NJ 07666
Abraham Schot director C/O COGNIZANT TECHNOLOGY SOLUTIONS CORP, 300 FRANK W. BURR BLVD. STE 36, 6 FL, TEANECK NJ 07666
Zein Abdalla director 700 ANDERSON HILL ROAD, LEGAL DEPARTMENT, 1/2, PURCHASE NY 10577
Maureen Breakiron-evans director C/O COGNIZANT TECHNOLOGY SOLUTIONS CORP., 300 FRANK W. BURR BLVD., STE. 36, 6 FL., TEANECK NJ 07666
Kathryn Diaz officer: SVP & Interim Chief People Off 300 FRANK W BURR BLVD, TEANECK NJ 07666
Eric Branderiz director 915 DEGUIGNE DRIVE, PO BOX 3453, SUNNYVALE CA 94088-3453
Nella Domenici director C/O ALLIANCEBERNSTEIN, 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Ravi Kumar Singisetti director, officer: Chief Executive Officer 9405 SW GEMINI DRIVE, BEAVERTON OR 97008
Surya Gummadi officer: SVP & Interim Americas Lead C/O COGNIZANT TECHNOLOGY SOLUTIONS, 300 FRANK W. BURR BOULEVARD, TEANECK NJ 07666
Andrew J Stafford officer: EVP, Head of Global Delivery C/O COGNIZANT TECHNOLOGY SOLUTIONS CORP., 300 FRANK W. BURR BLVD., STE. 36, 6 FL., TEANECK NJ 07666
Stephen J Rohleder director C/O ACCENTURE, 161 N. CLARK STREET, CHICAGO IL 60601
Rajesh Nambiar officer: President, Digital Business 300 FRANK W. BURR BLVD, STE. 36, 6TH FL., TEANECK NJ 07666
Robert Telesmanic officer: SVP, Cont. & Chief Acct. Offc. COGNIZANT TECHNOLOGY SOLUTIONS CORP., 300 FRANK W. BURR BLVD., STE. 36, 6 FL., TEANECK NJ 07666