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Cognizant Technology Solutions (STU:COZ) Cyclically Adjusted Price-to-FCF : 15.79 (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 €63.14. Cognizant Technology Solutions's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was €4.00. Cognizant Technology Solutions's Cyclically Adjusted Price-to-FCF for today is 15.79.

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

STU:COZ' 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.

STU:COZ's Cyclically Adjusted Price-to-FCF is ranked better than
73.68% of 661 companies
in the Software industry
Industry Median: 29.5 vs STU:COZ: 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 €0.030. 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 €4.00 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
=63.14/4
=15.79

* 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)
=0.03/131.7762*131.7762
=0.030

Current CPI (Mar. 2024) = 131.7762.

Cognizant Technology Solutions Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.444 100.560 0.582
201409 0.669 100.428 0.878
201412 0.329 99.070 0.438
201503 0.198 99.621 0.262
201506 0.552 100.684 0.722
201509 1.095 100.392 1.437
201512 0.975 99.792 1.287
201603 0.012 100.470 0.016
201606 0.425 101.688 0.551
201609 0.774 101.861 1.001
201612 0.803 101.863 1.039
201703 0.325 102.862 0.416
201706 0.694 103.349 0.885
201709 0.985 104.136 1.246
201712 1.079 104.011 1.367
201803 0.402 105.290 0.503
201806 0.802 106.317 0.994
201809 1.135 106.507 1.404
201812 0.917 105.998 1.140
201903 0.251 107.251 0.308
201906 0.752 108.070 0.917
201909 1.022 108.329 1.243
201912 1.380 108.420 1.677
202003 0.638 108.902 0.772
202006 1.454 108.767 1.762
202009 1.284 109.815 1.541
202012 1.243 109.897 1.490
202103 0.147 111.754 0.173
202106 0.733 114.631 0.843
202109 1.450 115.734 1.651
202112 1.274 117.630 1.427
202203 0.322 121.301 0.350
202206 0.881 125.017 0.929
202209 1.862 125.227 1.959
202212 1.126 125.222 1.185
202303 1.158 127.348 1.198
202306 -0.058 128.729 -0.059
202309 1.401 129.860 1.422
202312 1.204 129.419 1.226
202403 0.030 131.776 0.030

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  (STU:COZ) 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 (STU:COZ) 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.

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