TGM's two-stage DCF values Cognizant Technology Solutions Corporation (CTSH) between $68.04 and $116.27 depending on assumptions, with a base case of $84.69. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth (floored at 2%)), fading to 2.5% long-run; the discount rate (8.2%) reflects its beta.
What would today's price require?
$59.92 is justified only if free cash flow grows about -6.2% a year (fading to 2.5% long-run) at a 8.2% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 0.5%/yr | 9.2% | $68.04 |
| Base case | 2.0%/yr | 8.2% | $84.69 |
| Optimistic | 5.0%/yr | 7.2% | $116.27 |
| Third-party model estimate (FMP) | independent reference · retrieved Sep 9, 2026 · assumptions not provided | $106.85 | |
The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.
Current Price
$59.92
Market-Implied Growth
-6.2%/yr
vs -2.2% 5Y actual
Model Scenario Range
$68.04 – $116.27
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for CTSH (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $2.1B · 0.45B shares · net cash $749.0M
Estimated Fair Value
$84.69
+41.3% vs $59.92
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 2.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $59.92; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.2% | $106 | $116 | $129 | $147 | $171 |
| 7.2% | $87.47 | $94.18 | $102 | $112 | $125 |
| 8.2% | $74.63 | $79.26 | $84.69 | $91.16 | $99.00 |
| 9.2% | $65.12 | $68.48 | $72.33 | $76.80 | $82.04 |
| 10.2% | $57.80 | $60.33 | $63.18 | $66.42 | $70.14 |
