Cognizant Technology Solutions Stock Market Value
| CTSH Stock | USD 79.20 0.69 0.86% |
| Symbol | Cognizant |
Cognizant Technology Price To Book Ratio
Is IT Consulting & Other Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cognizant Technology. If investors know Cognizant will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cognizant Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.125 | Dividend Share 1.2 | Earnings Share 4.52 | Revenue Per Share 38.96 | Quarterly Revenue Growth 0.03 |
The market value of Cognizant Technology is measured differently than its book value, which is the value of Cognizant that is recorded on the company's balance sheet. Investors also form their own opinion of Cognizant Technology's value that differs from its market value or its book value, called intrinsic value, which is Cognizant Technology's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cognizant Technology's market value can be influenced by many factors that don't directly affect Cognizant Technology's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cognizant Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cognizant Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cognizant Technology's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Cognizant Technology 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Cognizant Technology's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Cognizant Technology.
| 09/30/2024 |
| 12/29/2024 |
If you would invest 0.00 in Cognizant Technology on September 30, 2024 and sell it all today you would earn a total of 0.00 from holding Cognizant Technology Solutions or generate 0.0% return on investment in Cognizant Technology over 90 days. Cognizant Technology is related to or competes with Wipro Limited, Accenture Plc, Gartner, CACI International, CDW Corp, Jack Henry, and Broadridge Financial. Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and out... More
Cognizant Technology Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Cognizant Technology's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Cognizant Technology Solutions upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.61 | |||
| Information Ratio | 0.0391 | |||
| Maximum Drawdown | 9.84 | |||
| Value At Risk | (1.89) | |||
| Potential Upside | 1.93 |
Cognizant Technology Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Cognizant Technology's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Cognizant Technology's standard deviation. In reality, there are many statistical measures that can use Cognizant Technology historical prices to predict the future Cognizant Technology's volatility.| Risk Adjusted Performance | 0.0536 | |||
| Jensen Alpha | 0.0741 | |||
| Total Risk Alpha | 0.0382 | |||
| Sortino Ratio | 0.0346 | |||
| Treynor Ratio | 0.4888 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Cognizant Technology's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Cognizant Technology Backtested Returns
Cognizant Technology is very steady at the moment. Cognizant Technology secures Sharpe Ratio (or Efficiency) of 0.0398, which signifies that the company had a 0.0398% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Cognizant Technology Solutions, which you can use to evaluate the volatility of the firm. Please confirm Cognizant Technology's Downside Deviation of 1.61, risk adjusted performance of 0.0536, and Mean Deviation of 0.9952 to double-check if the risk estimate we provide is consistent with the expected return of 0.0563%. Cognizant Technology has a performance score of 3 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.16, which signifies not very significant fluctuations relative to the market. As returns on the market increase, Cognizant Technology's returns are expected to increase less than the market. However, during the bear market, the loss of holding Cognizant Technology is expected to be smaller as well. Cognizant Technology right now shows a risk of 1.41%. Please confirm Cognizant Technology value at risk, and the relationship between the jensen alpha and skewness , to decide if Cognizant Technology will be following its price patterns.
Auto-correlation | -0.09 |
Very weak reverse predictability
Cognizant Technology Solutions has very weak reverse predictability. Overlapping area represents the amount of predictability between Cognizant Technology time series from 30th of September 2024 to 14th of November 2024 and 14th of November 2024 to 29th of December 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Cognizant Technology price movement. The serial correlation of -0.09 indicates that less than 9.0% of current Cognizant Technology price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.09 | |
| Spearman Rank Test | 0.15 | |
| Residual Average | 0.0 | |
| Price Variance | 1.78 |
Cognizant Technology lagged returns against current returns
Autocorrelation, which is Cognizant Technology stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Cognizant Technology's stock expected returns. We can calculate the autocorrelation of Cognizant Technology returns to help us make a trade decision. For example, suppose you find that Cognizant Technology has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
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Cognizant Technology regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Cognizant Technology stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Cognizant Technology stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Cognizant Technology stock over time.
Current vs Lagged Prices |
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Cognizant Technology Lagged Returns
When evaluating Cognizant Technology's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Cognizant Technology stock have on its future price. Cognizant Technology autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Cognizant Technology autocorrelation shows the relationship between Cognizant Technology stock current value and its past values and can show if there is a momentum factor associated with investing in Cognizant Technology Solutions.
Regressed Prices |
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Currently Active Assets on Macroaxis
When determining whether Cognizant Technology offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Cognizant Technology's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Cognizant Technology Solutions Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Cognizant Technology Solutions Stock:Check out Cognizant Technology Correlation, Cognizant Technology Volatility and Cognizant Technology Alpha and Beta module to complement your research on Cognizant Technology. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Cognizant Technology technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.