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• On November 20, 2025, the Coalition for Epidemic Preparedness Innovations (CEPI) selected Cognizant Technology Solutions to lead a multi-year digital transformation project, including the implementation of a new core HR and Expense Management System and enhancement of CEPI’s Salesforce platform.

• This win underscores Cognizant’s recognized expertise in digital transformation and AI-enabled enterprise architecture across the healthcare and non-profit sectors.

• We’ll look at how this significant multi-year client engagement bolsters Cognizant’s investment narrative and future growth prospects.

Find companies with promising cash flow potential yet trading below their fair value.

To own shares of Cognizant, an investor needs to believe in the company’s ability to stay ahead in digital transformation and AI-driven enterprise services, despite an industry marked by rapid change and cost pressures. The newly announced multi-year CEPI digital transformation deal reinforces Cognizant’s relevance in healthcare and non-profit sectors, supporting the current short-term catalyst of robust, recurring client wins, while the key risk remains the acceleration of AI and platform automation potentially eroding demand for traditional services. So far, this news adds positive evidence but does not change the largest risk facing the business.

Among recent announcements, the launch of the ONE Bridge automation accelerator with Ataccama stands out as especially relevant. This tool enables clients to migrate data platforms more efficiently, which aligns with Cognizant’s strategy to win large digital transformation projects and could reinforce growth in recurring revenue if the company maintains its innovation pace.

However, investors should keep in mind that if enterprise adoption of agentic AI accelerates faster than Cognizant’s ability to adapt its services offering…

Read the full narrative on Cognizant Technology Solutions (it’s free!)

Cognizant Technology Solutions’ outlook anticipates $23.5 billion in revenue and $2.9 billion in earnings by 2028. This is based on a forecast annual revenue growth rate of 4.7% and an earnings increase of $0.5 billion from the current earnings of $2.4 billion.

Uncover how Cognizant Technology Solutions’ forecasts yield a $84.86 fair value, a 12% upside to its current price.

Eight members of the Simply Wall St Community estimate Cognizant’s fair value between US$66.06 and US$126.19 per share. While many focus on AI-powered deal wins, the ongoing risk of technology shifting client demand patterns could influence the company’s future growth path in several ways.

Explore 8 other fair value estimates on Cognizant Technology Solutions – why the stock might be worth as much as 66% more than the current price!

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

• A great starting point for your Cognizant Technology Solutions research is our analysis highlighting 3 key rewards that could impact your investment decision.

• Our free Cognizant Technology Solutions research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate Cognizant Technology Solutions’ overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include CTSH.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

• Wondering if Moody’s current share price reflects real value or just market hype? You’re not alone, and we’re about to break it down in plain terms.

• After mostly holding steady this year, Moody’s stock has ticked up 1.4% year-to-date and gained over 80% in the last five years. This suggests long-term growth but also raises questions about future upside.

• Recent headlines have focused on Moody’s expanding its risk assessment coverage and forming new partnerships in the financial technology space. These moves are driving fresh conversations about the company’s competitive position and its potential to navigate a shifting regulatory landscape.

• Right now, Moody’s valuation score sits at 0 out of 6 checks for being undervalued, according to our framework. Let’s look at how different valuation methods approach the stock, and keep in mind there is an even more useful perspective coming up at the end of this article.

Moody’s scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

The Excess Returns Model helps investors understand whether a company creates value above its cost of capital. It measures how much profit Moody’s can generate from its investments in comparison to the minimum return shareholders require, or the cost of equity.

For Moody’s, the average return on equity is an impressive 62.98%. The company’s stable earnings per share are estimated at $17.17, with a cost of equity at $2.25 per share. This results in a robust excess return of $14.93 per share. The latest book value sits at $22.18 per share, and projections point to a stable book value of $27.26 per share, based on weighted estimates from multiple analysts.

This model estimates Moody’s intrinsic share value at $327.15. Compared to the current market price, this implies the stock is about 46.6% overvalued. While Moody’s strong excess returns highlight its ability to create shareholder value, the current price appears to overshoot what the fundamentals justify.

Result: OVERVALUED

Our Excess Returns analysis suggests Moody’s may be overvalued by 46.6%. Discover 917 undervalued stocks or create your own screener to find better value opportunities.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Moody’s.

For profitable companies like Moody’s, the price-to-earnings (PE) ratio is a widely accepted gauge of value. It tells investors how much they are paying for each dollar of current earnings, which is especially relevant for established businesses with reliable profits.

Market expectations of growth and risk play a huge role in what a “normal” or “fair” PE ratio should be. Companies with expected higher growth, lower risks, or strong market positions often trade at higher multiples, while those facing challenges may warrant a discount.

Moody’s current PE ratio is 38.13x, which stands well above the Capital Markets industry average of 23.63x and the peer average of 30.15x. On the surface, this suggests investors are paying a premium for Moody’s shares compared to both the broader industry and other peers. However, context is key. Factors like top-notch profit margins, growth resilience, and market stature can justify a loftier multiple.

This is where the Simply Wall St “Fair Ratio” comes in. Unlike a plain industry or peer check, the Fair Ratio (17.84x for Moody’s) models what a justified multiple should be, considering Moody’s specific earnings growth outlook, profit margins, scale, and risk profile. This holistic approach digs deeper into the unique story behind the company, not just the sector it sits in.

Comparing Moody’s current PE of 38.13x to a Fair Ratio of 17.84x, the stock trades at more than double what our model deems reasonable. This suggests it is significantly overvalued with respect to earnings potential and risk.

Result: OVERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1422 companies where insiders are betting big on explosive growth.

Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives, an innovative approach that helps you make sense of a company’s potential by combining the story behind the business with financial forecasts and fair value estimates.

A Narrative is simply your perspective on a company, weaving together your assumptions about its future revenue, earnings, and margins into a story that makes sense to you. With Narratives on Simply Wall St’s Community page, millions of investors can turn their insights into actionable forecasts, helping you see not just where the numbers come from, but what they mean for future performance.

This tool empowers you to link Moody’s evolving business outlook directly to a calculated fair value, showing whether the stock is undervalued or overvalued compared to today’s price and making it easier to decide when to buy or sell. Best of all, Narratives update automatically as new news or earnings are announced, keeping your view aligned with real-world events.

For example, some investors expect rapid revenue growth and margin expansion for Moody’s, driving price targets as high as $595, while others are more cautious due to regulatory pressures and set targets closer to $475. Your Narrative helps you decide which view fits your beliefs and investment goals.

Do you think there’s more to the story for Moody’s? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include MCO.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

• Aeva Technologies announced an exclusive partnership with D2 Traffic Technologies to deliver 4D LiDAR-based smart infrastructure solutions across the U.S. and secured a US$100 million investment from funds managed by Apollo Global Management to accelerate the sales and deployment of its LiDAR technology.

• These actions mark a shift for Aeva from a LiDAR sensor supplier to a full-solution provider, offering integrated sensing, perception, and analytics for transportation infrastructure.

• We’ll explore how this move toward comprehensive traffic management solutions shapes Aeva Technologies’ broader investment narrative.

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For investors considering Aeva Technologies, the underlying story continues to hinge on whether its advanced LiDAR platform can achieve meaningful commercial adoption and drive sustainable revenue growth. The recent exclusive partnership with D2 Traffic Technologies and US$100 million backing from Apollo Global Management signal a push beyond hardware into full-stack smart infrastructure solutions, which could reshape the company’s near-term catalysts. These developments bring new momentum at a time when high growth, particularly in traffic management and automotive sectors, is top of mind. However, previous data indicated a highly volatile share price, rising losses, and a price-to-sales ratio far above peers, suggesting Aeva remains a high-risk proposition. While the new capital and partnerships may address concerns over funding and market reach, investors now need to reassess whether the commercial pipeline can grow rapidly enough to offset persistent losses and justify today’s valuation. Yet, it’s the competitive pressures and uncertain path to profitability that most demand careful consideration.

In light of our recent valuation report, it seems possible that Aeva Technologies is trading beyond its estimated value.

Ten fair value estimates from the Simply Wall St Community show a striking span from US$1.02 to US$52.96 per share, underlining wide disagreement on potential upside or risk. With recent moves aimed at full-solution delivery, the company’s ability to convert partnerships into sustained revenue remains a key focus for many market participants seeking clarity.

Explore 10 other fair value estimates on Aeva Technologies – why the stock might be worth over 5x more than the current price!

Disagree with this assessment? Create your own narrative in under 3 minutes – extraordinary investment returns rarely come from following the herd.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include AEVA.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com