CTSH — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($63.50)
DCF	$190.86	+200.6%
Graham Number	$56.71	-10.7%
Reverse DCF	—	implied g: 2.7%
DDM	$27.19	-57.2%
EV/EBITDA	$63.50	+0.0%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.93B

Near-term growth (yrs 1–5)(%)Rev: 4.9% / EPS: 22.1%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.35%

Computed WACC: 9.35%

Cost of equity (Re)9.71%(Rf 4.30% + β 0.98 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)96.31%

Debt weight (D/V)3.69%

Results

Intrinsic Value / share$179.94

Current Price$63.50

Upside / Downside+183.4%

Net Debt (used)-$740.00M

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	14.1%	18.1%	22.1%	26.1%	30.1%
7.0%	$209.97	$247.36	$290.06	$338.60	$393.58
8.0%	$168.14	$197.71	$231.44	$269.77	$313.15
9.0%	$139.40	$163.60	$191.19	$222.51	$257.95
10.0%	$118.50	$138.80	$161.93	$188.17	$217.84
11.0%	$102.66	$120.01	$139.76	$162.17	$187.48

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $4.56

Book Value / share($)Yahoo: $31.35

Results

Graham Number$56.71

Current Price$63.50

Margin of Safety-10.7%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.35%

Terminal growth rate(%)

Computed WACC: 9.35%

Cost of equity (Re)9.71%(Rf 4.30% + β 0.98 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)96.31%

Debt weight (D/V)3.69%

Results

Current Price$63.50

Implied Near-term FCF Growth3.6%

Historical Revenue Growth4.9%

Historical Earnings Growth22.1%

Base FCF (TTM)$1.93B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $1.32

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$27.19

Current Price$63.50

Upside / Downside-57.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $3.83B

Target EV/EBITDA multipleCurrent: 7.7×

Net Debt($B)Default: -$740.00M

Results

Implied Equity Value / share$63.50

Current Price$63.50

Upside / Downside+0.0%

Implied EV$29.63B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	-$2.74B	-$1.74B	-$740.00M	$260.00M	$1.26B
3.7x	$35.62	$33.52	$31.43	$29.34	$27.25
5.7x	$51.65	$49.56	$47.47	$45.38	$43.29
7.7x	$67.68	$65.59	$63.50	$61.41	$59.32
9.7x	$83.72	$81.63	$79.53	$77.44	$75.35
11.7x	$99.75	$97.66	$95.57	$93.48	$91.39

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