Cognizant Technology Solutions Corporation Stock Price and Value Analysis

Should you buy Cognizant Technology Solutions Corporation stock? (NasdaqGS:CTSH). Let's see how it does in our automated value investing analysis system.

CTSH Free Cash Flow Trend

Free Cash Flow trendline for CTSH
Free Cash Flow trendline for Cognizant Technology Solutions Corporation

Based on historical returns, we believe that Cognizant Technology Solutions Corporation can grow its free cash at a rate of about 2%. That's positive!

AdvantagesDisadvantages
  • This company has stable growth.
  • This company is very stable.
  • This company is making money at a modest rate.
  • This company has a low dividend yield.
  • This stock looks overpriced.

Inside the CTSH Numbers

CTSH Price
(Cognizant Technology Solutions Corporation stock price per share)
$73.71
[?] CTSH Fair Price
(based on intrinsic value)
$37.78
[?] CTSH Safety Price (based on a variable margin of safety) $30.22
[?] PE Ratio versus Sector 74% higher than other Technology stocks
[?] PE Ratio versus Industry 27% higher than other Information Technology Services stocks
[?] Cash Yield 3.75%
[?] Free Cash Flow Jitter 18%
[?] Dividend Yield 1%
Shares Shorted 9,433,503

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 9,433,503 shares shorted. With 528,979,966 shares available for purchase and an average trading volume over the past 10 trading days of 3,139,000, it would take at least 3.005 days for all of the short holders to cover their shorts.

Is Cognizant Technology Solutions Corporation Stock on Sale?

We believe that Cognizant Technology Solutions Corporation may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Cognizant Technology Solutions Corporation looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy CTSH Stock?

Does Cognizant Technology Solutions Corporation have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.