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Cognizant Technology Solutions Corporation (NASDAQ: CTSH) – Is this large market cap stock undervalued?

Cognizant Technology Solutions Corporation (NASDAQ: CTSH), is firmly in the large market cap category with market cap of 32835.52. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Cognizant Technology Solutions Corporation is 53.57 (with a change from open of -0.28%), this in conjunction with a target price of 67.41. Volume today has so far reached 1875069, with an average volume of about 4301.36. The GAP for this stock, is 0.75%.

The P/E ratio is 21.54, bringing the forward P/E to a value of 14.41. The current EPS for Cognizant Technology Solutions Corporation, is 2.48, with a EPS growth for this year coming to a value of 12.70%. Performance has been interesting with performance year to date coming to -11.16%.

Looking further into the growth statistics for Cognizant Technology Solutions Corporation, EPS is looking like it will grow 9.66% in the next year. Looking even further it is projected to be 13.37%. Quarter over quarter is -39.40% for EPS growth and for sales growth quarter over quarter it is 9.20%. Looking at past EPS growth statistics we see that for the past five years it has been 17.40%. Sales growth for the past five years has in fact been 22.00%.

Looking at the ownership, we see that the insider ownership is at 0.30% and institutional ownership is 90.80%. Shares outstanding is 615.82, while shares float is at a value of 604.09. Float short for Cognizant Technology Solutions Corporation is 1.37% and the short ratio is 1.93.

In terms of debt, long term debt/equity is 0.09, while the total debt/equity comes to 0.09. The ability to meet these debts, means that the current ratio is 3.7, and the quick ratio is 3.7. The most recent gross margin is 40.10% and their operating margin is 17.30%. The profit margin is 11.70%.

Cognizant Technology Solutions Corporation has seen returns on assets of 11.80%, and on investment, 15.20%. Return on equity is 16.10%. Price/Earnings to growth ratio is 1.61. Price/Sales ratio is at a value of 2.53, with Price/book ratio coming to 3.28 and Price/cash is 7.33, and finally Price/Free cash Flow is 19.8.

The simple moving averages are -6.97% and -9.19% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -23.25% and the 52 week low is 4.59%.

Cognizant Technology Solutions Corporation has a dividend yield of , with a current price of 53.57. The ability to pay this means the payout ratio is 0.00%. This is in an industry, Business Software & Services, with equally high dividends from other companies in this sector, which it is Technology. Cognizant Technology Solutions Corporation is based in USA.

Performance in the Business Software & Services industry means that Cognizant Technology Solutions Corporation has seen performance for the past week of -3.46%, with performance for the month coming to -6.46%. Looking at the data for the quarter it is at a value of -10.46%, and for the half year the performance is -15.22%. Volatility for this week is 2.38% and for the month this is 1.74%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Peter Clarke

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