Cognizant Tech Solutions-A
CTSHWithin bandExpectations · modestHeld by 6 superinvestors.
SEC 10-K · fundamentals
Business quality
as of 2025-12-31Valuation basis: trailing twelve months to 2026-03-31 — latest 10-K plus unaudited 10-Q filings.
- Revenue growth
- +7.0%
- Net margin
- 10.6%
- ROE
- 14.9%
- FCF margin
- 12.3%
Valuation · value band
In fair-value range
Zero-growth floor
$49
Central IV
$55
Optimistic top
$105
Cognizant Tech Solutions-A (CTSH): Two methods value the business — a conservative owner-earnings DCF and a growth-credited Greenwald estimate, $49–$105 / sh. Today’s price sits inside both (price $62 as of 2026-08-26).
The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.
Revenue growth 1% (lower of historical trend and fundamental cap, capped by moat) · moat 20 yr · discount 10.6% · Zero-growth downside $49
Price as of 2026-08-26 · yahoo · DGS10 4.7% @ 2026-08-26.
Method & numbers
Model cautions
- Owner-earnings yield diverges sharply from the 10-year Treasury (over 300 bps).
- The two methods’ midpoints differ materially — growth assumptions warrant review (over 20%).
A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.
Owner-earnings DCF $46.08 – $64.21 · Greenwald $78.52 – $105.36 (neutral $92.82) · zero-growth base $69.30 · reproduction $12.37
Moat Franchise (moat) · terminal value 15% of present value · owner-earnings yield 9% vs 10Y 4.7%.
Graham earnings-power value (normalized NOPAT)$57.06 – $69.30 / sh
Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.
Years: TTM 2026-03-31, 2024, 2023, 2022, 2021
v1 simplifications: Maintenance capex (degraded) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Maintenance-capex methods diverge by 234% (> 50%); estimate is degraded. Share-based compensation is left as a real expense (not added back).
Buffett owner-earnings value$49.20 – $60.13 / sh
Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 9–11% rate band (read as a cost-of-equity proxy). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).
Years: TTM 2026-03-31, 2024, 2023, 2022, 2021
v1 simplifications: Owner earnings = net income + D&A − maintenance capex (degraded); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). Maintenance-capex methods diverge by 234% (> 50%); estimate is degraded. One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% band as a cost-of-equity proxy; no leverage premium applied (net cash or debt within the no-charge range).
Reproduction value = tangible net assets $5.90B = $12.37 / sh. Tangible net assets = shareholders' equity − goodwill − intangibles, ÷ diluted shares (no R&D history to capitalize).
Moat reading: Franchise test compares earnings power (EPV) against reproduction value on both AV_conservative (tangible + capitalized R&D) and AV_reproduction (conservative + acquired-reset proxy). Both must clear the franchise multiple for a moat signal; near it, a commodity; below it, value destruction. A directional reading, not a verdict.
Assumes a wide moat · competitive-advantage period ≈ 20 years (earnings intact, ROIC stable over history).
Growth value: if the moat holds for 20 yr at ROIIC ≈ 105%, $9.22–$36.06 / sh (neutral $23.52). Conservative, not a forecast.
Window TTM 2026-03-31, FY 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 21% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.
Owner-earnings DCF: growth g₁ 1% · OE FY TTM 2026-03-31, 2024, 2023, 2022, 2021 · Discount band: 9.16%–12.00% (DGS10 +4.5% to a 12% strict end, as of 2026-08-26). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp. Two-method midpoint gap 51%.
Valuation basis: trailing twelve months to 2026-03-31 — latest 10-K plus unaudited 10-Q filings.
What the price is betting
Today's price pencils in about 2.5% a year in owner-earnings for the next few years. Revenue actually grew 4.0% a year.
Below what it has already done.
Roughly, the price needs its historical revenue growth to run about 7 more years to hold up.
SEC 13F · holders
Superinvestors Holding This Security
6 holders · $1.77B combined · this quarter +1 opened / -1 exited
- Value$1.03BWeight (prev→now)4.0% → 3.0% ▼
- Value$563.2MWeight (prev→now)0.5% → 0.3% ▼
- Value$122.0MWeight (prev→now)2.5% → 1.5% ▼
- Value$25.8MWeight (prev→now)0.1% → 0.1% ▼
- Value$19.2MWeight (prev→now)1.1% → 0.2% ▼
- Value$14.6MWeight (prev→now)New · 1.7%
SEC 13F · notes
Written summary
Written summary
Cognizant Tech Solutions-A (CTSH) is held by 6 of the superinvestors tracked on Compounder, with a combined $1.77B in reported 13F value. The largest position belongs to Richard Pzena, where it makes up 3.0% of the portfolio.
Other notable holders by value include Dodge & Cox (0.3% of its book), Donald Yacktman (1.5% of its book) and Jeremy Grantham (0.1% of its book).
Over the latest quarter, 1 of the tracked filers opened a new position in CTSH, 4 added to existing ones, 1 trimmed, and 1 sold out entirely.
Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.
SEC 13F · co-ownership
Also held by these investors
Investors holding Cognizant Tech Solutions-A (CTSH) also commonly hold →
- Microsoft CorpMSFT6 holders
- Walt Disney Co/TheDIS6 holders
- Alphabet Inc-Cl CGOOG5 holders
- Merck & Co. IncMRK5 holders
- Alphabet Inc-Cl AGOOGL4 holders
- Unitedhealth Group IncUNH4 holders
CTSH's price is not below its conservative value band. See current strike-zone stocks
Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14
Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.
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