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Cognizant Technology Solutions Corp (NAS:CTSH)
Price-to-Free-Cash-Flow Ratio
21.36 (As of Today)

As of today, Cognizant Technology Solutions Corp's share price is $57.87. Cognizant Technology Solutions Corp's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2016 was $2.71. Hence, Cognizant Technology Solutions Corp's Price-to-Free-Cash-Flow Ratio for today is 21.36.

CTSH' s Price-to-Free-Cash-Flow ratio Range Over the Past 10 Years
Min: 15.8   Max: 138
Current: 21.35

15.8
138

During the past 13 years, Cognizant Technology Solutions Corp's highest Price-to-Free-Cash-Flow Ratio was 138.00. The lowest was 15.80. And the median was 29.47.

CTSH's Price-to-Free-Cash-Flow ratio is ranked higher than
57% of the 646 Companies
in the Global Information Technology Services industry.

( Industry Median: 24.51 vs. CTSH: 21.35 )

Cognizant Technology Solutions Corp's Free Cash Flow per Share for the three months ended in Jun. 2016 was $0.47. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2016 was $2.71.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Cognizant Technology Solutions Corp was 28.80% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 30.80% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 27.80% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 33.40% per year.

During the past 13 years, Cognizant Technology Solutions Corp's highest 3-Year average Free Cash Flow per Share Growth Rate was 59.50% per year. The lowest was -10.60% per year. And the median was 30.80% per year.


Definition

Cognizant Technology Solutions Corp's Price-to-Free-Cash-Flow ratio for today is calculated as

Price-to-Free-Cash-Flow Ratio=Share Price/Free Cash Flow per Share (TTM)
=57.87/2.709
=21.36

Cognizant Technology Solutions Corp's Share Price of today is $57.87.
Cognizant Technology Solutions Corp's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2016 was 1.229 (Sep. 2015 ) + 1.004 (Dec. 2015 ) + 0.008 (Mar. 2016 ) + 0.468 (Jun. 2016 ) = $2.71.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

It can also be calculated from the numbers for the whole company:

Price-to-Free-Cash-Flow Ratio=Market Cap/Free Cash Flow

Explanation

Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.

In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.


Be Aware

In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management’s decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.


Related Terms

Free Cash Flow, Free Cash Flow per Share, P/S Ratio, P/B Ratio, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Cognizant Technology Solutions Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
pfcf 78.7364.0420.7622.8839.1633.9626.9226.4525.5819.57

Cognizant Technology Solutions Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
pfcf 24.1822.4519.4125.5829.8929.0525.3519.5721.9221.13
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