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Is this Large Market Cap Stock target price reasonable for Cognizant Technology Solutions Corporation (NASDAQ:CTSH)?

The company in question is, Cognizant Technology Solutions Corporation (NASDAQ:CTSH) currently with a stock price of 58.44 (0.23% today). The market cap for Cognizant Technology Solutions Corporation is 36050.16, and is in the sector Technology, and Business Software & Services industry. The target price for Cognizant Technology Solutions Corporation is 69.35. Currently Cognizant Technology Solutions Corporation is trading with a P/E of 21.24, and a forward P/E of 15.41. Average volume for Cognizant Technology Solutions Corporation is 4045.91 and so far today it is 1424058.

Performance in the last year for Cognizant Technology Solutions Corporation has been -6.24%. For EPS growth, Cognizant Technology Solutions Corporation has seen a growth of 12.70%, and is looking to grow in the next year to 12.29%. More long term stats show that EPS growth has been 17.40% over the last five years and could be 14.10% for the next five years. Cognizant Technology Solutions Corporation has seen sales growth quarter over quarter at 10.00%, with EPS growth quarter over quarter at 15.60%. The 20-day simple moving average is -2.41%, with the 200-day simple moving average coming to -3.85%.

Since the IPO date for Cognizant Technology Solutions Corporation on the 6/19/1998, Cognizant Technology Solutions Corporation has seen performance year to date to be -2.85%. With Cognizant Technology Solutions Corporation trading at 58.44, the dividend yield is *TBA, and the EPS is 2.75.

So could Cognizant Technology Solutions Corporation, be undervalued? Well as said before P/E is 21.24. The PEG is 1.51, P/S is 2.84 and the P/B is at 3.69. The P/cash is 8.1, with P/free cash flow at 20.55.

Cognizant Technology Solutions Corporation ability to deal with debt shows that the current ratio is 3.7, and the quick ratio is 3.7. This is with long term debt/equity at 0.09, and total debt/equity at 0.11.

In terms of margins, Cognizant Technology Solutions Corporation has a gross margin of 40.20%, an operating margin of 17.30% and a profit margin of 13.20%.Payout ratio for Cognizant Technology Solutions Corporation is 0.00%. Return on assets come to 13.50% with return on investment coming to 15.20%.

Insider ownership for Cognizant Technology Solutions Corporation, is at 0.30% and institutional ownership comes to 91.80%. Outstanding shares are at 618.25. While shares float is 603.03. The float short is currently 1.19%, and short ratio is 1.77.

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.

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Stephen Butters

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