CTSH · Nasdaq · Services-Computer Programming Services
$68.04 · $33.3B market value · fiscal year to 31 Dec 2025
Live from the latest filings
9 of 10
Buffett tests pass
Margin of safety 33%
Bear
$60.48
Base
$102.23
Bull
$161.07
Price $68.04
9 pass · 0 mixed · 1 fail · 0 can't tell
Each dollar retained over the period has been matched by -0.1× of market value created ($13.3B retained in total).
Why this testNo loss years across 15 years of filings, with operating margin varying by 1.5% around its average.
Why this testReturn on equity averaged 16%, reaching 15% in 8 of the years measured; the weakest year was 13%.
Why this testAfter-tax return on invested capital averaged 21% over 10 years and was 16% in the latest year.
Why this testTotal debt of $576.0M would take 0.2 yrs of normalised owner earnings to repay; operating income covers interest 92×. Both tests pass: payback within 4 years and interest cover of 8x or more.
Why this testNormalised owner earnings are $2.5B, and free cash flow has averaged 115% of reported profit.
Why this testCapital spending has averaged 0.6× depreciation; estimated maintenance capex was $169.4M last year.
Why this testThe diluted share count has changed by -2.4% a year. Shrinking means buybacks are returning value; growing means owners are being diluted.
Why this testAt $68.04, the price is 33% below the base-case value of $102.23 (the bear case is $60.48). The standard lens asks for a 25% margin.
Why this testThe owner-earnings yield is 7.6% against a 10-year Treasury yield of 5.2%.
Why this testDiscounted owner earnings
Bear
$60.48
Base
$102.23
Bull
$161.07
Price $68.04
| Scenario | Starting owner earnings | Growth (yrs 1–5) | Terminal | Discount | Value / share |
|---|---|---|---|---|---|
| bear | $2.5B | -0.5% | 1.5% | 9.7% | $60.48 |
| base | $2.5B | 3.5% | 2.5% | 8.2% | $102.23 |
| bull | $2.5B | 6.5% | 3.0% | 7.2% | $161.07 |
How sensitive is that?
| Discount ↓ / Growth → | -0.5% | 1.5% | 3.5% | 5.5% | 7.5% |
|---|---|---|---|---|---|
| 6.2% | $123 | $139 | $157 | $177 |
Fiscal year to 31 Dec 2025
Replicly is a research and education tool. It is not financial advice and does not recommend that you buy or sell any investment. Analyses apply Buffett-inspired principles to public data and can be wrong. Warren Buffett and Berkshire Hathaway are not affiliated with and do not endorse Replicly. Capital is at risk.
| $200 |
| 7.1% | $98 | $110 | $124 | $139 | $156 |
|---|
| 8.2% | $82 | $91 | $102 | $114 | $128 |
|---|
| 9.2% | $70 | $78 | $87 | $97 | $108 |
|---|
| 10.2% | $61 | $68 | $76 | $85 | $94 |
|---|
Green: at least 25% above the price. Amber: above it. Red: below it. n/a means the discount rate is at or below growth, where the model has no finite answer. The corners combine the most extreme assumptions, so treat them as bounds.
Discount rate: 10-year Treasury (5.2%) plus a 3% equity hurdle. Price $68.04 on 20 Oct 2026. End-of-day prices from free public sources, may be delayed or missing.
Revenue
$21.1B
Revenue growth (CAGR)
5.1%
Operating margin (avg)
15%
Return on equity (avg)
16%
ROIC (avg)
21%
Normalised owner earnings
$2.5B
Cash conversion
115%
Net cash
$1.3B
Debt payback
0.2 yrs
Share count change (CAGR)
-2.4%
Price / earnings
15×
Owner earnings yield
7.6%