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Cognizant Technology Solutions Shiller PE Ratio

: 26.12 (As of Today)
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As of today (2020-09-21), Cognizant Technology Solutions's current share price is USD67.39. Cognizant Technology Solutions's E10 for the quarter that ended in Jun. 2020 was USD2.58. Cognizant Technology Solutions's Shiller PE Ratio for today is 26.12.

NAS:CTSH' s Shiller PE Ratio Range Over the Past 10 Years
Min: 17.22   Med: 42.06   Max: 82.7
Current: 26.09

17.22
82.7

During the past years, Cognizant Technology Solutions's highest Shiller PE Ratio was 82.70. The lowest was 17.22. And the median was 42.06.

NAS:CTSH's Shiller PE Ratio is ranked higher than
61% of the 803 Companies
in the Software industry.

( Industry Median: 35.26 vs. NAS:CTSH: 26.09 )

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Cognizant Technology Solutions's adjusted earnings per share data for the three months ended in Jun. 2020 was USD0.670. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is USD2.58 for the trailing ten years ended in Jun. 2020.

Shiller PE for Stocks: The True Measure of Stock Valuation


Cognizant Technology Solutions Shiller PE Ratio Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Cognizant Technology Solutions Annual Data
Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Shiller PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 41.47 33.10 37.10 28.60 24.82

Cognizant Technology Solutions Quarterly Data
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20
Shiller PE Ratio 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 Premium Member Only Premium Member Only Premium Member Only 26.65 24.61 24.82 18.43 22.01

Competitive Comparison
* 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.


Cognizant Technology Solutions Shiller PE Ratio Distribution

* The bar in red indicates where Cognizant Technology Solutions's Shiller PE Ratio falls into.



Cognizant Technology Solutions Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Cognizant Technology Solutions's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=67.39/2.58
=26.12

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Cognizant Technology Solutions's E10 for the quarter that ended in Jun. 2020 is calculated as:

For example, Cognizant Technology Solutions's adjusted earnings per share data for the three months ended in Jun. 2020 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Jun. 2020 (Change)*Current CPI (Jun. 2020)
=0.67/109.3175*109.3175
=0.670

Current CPI (Jun. 2020) = 109.3175.

Cognizant Technology Solutions Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201009 0.330 92.277 0.391
201012 0.330 92.914 0.388
201103 0.335 94.890 0.386
201106 0.335 95.319 0.384
201109 0.365 95.529 0.418
201112 0.390 95.632 0.446
201203 0.395 97.075 0.445
201206 0.410 96.661 0.464
201209 0.455 97.595 0.510
201212 0.460 97.158 0.518
201303 0.470 98.107 0.524
201306 0.490 98.557 0.544
201309 0.530 98.536 0.588
201312 0.530 98.692 0.587
201403 0.570 100.023 0.623
201406 0.610 100.520 0.663
201409 0.580 100.176 0.633
201412 0.590 98.604 0.654
201503 0.620 99.824 0.679
201506 0.680 100.691 0.738
201509 0.650 100.346 0.708
201512 0.690 99.957 0.755
201603 0.720 100.947 0.780
201606 0.410 101.524 0.441
201609 0.730 101.988 0.782
201612 0.680 102.456 0.726
201703 0.920 103.167 0.975
201706 0.800 103.278 0.847
201709 0.840 104.070 0.882
201712 -0.030 104.578 -0.031
201803 0.880 105.708 0.910
201806 0.780 106.324 0.802
201809 0.820 106.695 0.840
201812 1.120 106.200 1.153
201903 0.770 107.818 0.781
201906 0.900 108.250 0.909
201909 0.900 108.577 0.906
201912 0.720 108.841 0.723
202003 0.670 108.173 0.677
202006 0.670 109.318 0.670

Add all the adjusted EPS together and divide 10 will get our E10.

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) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


Cognizant Technology Solutions Shiller PE Ratio Related Terms


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