Historical Valuation
Cognizant Technology Solutions Corp (CTSH) is now in the Undervalued zone, suggesting that its current forward PE ratio of 14.75 is considered Undervalued compared with the five-year average of 15.90. The fair price of Cognizant Technology Solutions Corp (CTSH) is between 91.91 to 110.75 according to relative valuation methord. Compared to the current price of 85.26 USD , Cognizant Technology Solutions Corp is Undervalued By 7.23%.
Relative Value
Fair Zone
91.91-110.75
Current Price：85.26
7.23%
Undervalued
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
Cognizant Technology Solutions Corp (CTSH) has a current Price-to-Book (P/B) ratio of 2.64. Compared to its 3-year average P/B ratio of 2.61 , the current P/B ratio is approximately 1.04% higher. Relative to its 5-year average P/B ratio of 2.91, the current P/B ratio is about -9.45% higher. Cognizant Technology Solutions Corp (CTSH) has a Forward Free Cash Flow (FCF) yield of approximately 6.76%. Compared to its 3-year average FCF yield of 5.75%, the current FCF yield is approximately 17.43% lower. Relative to its 5-year average FCF yield of 5.96% , the current FCF yield is about 13.30% lower.
P/B
Median3y
2.61
Median5y
2.91
FCF Yield
Median3y
5.75
Median5y
5.96
Competitors Valuation Multiple
AI Analysis for CTSH
The average P/S ratio for CTSH competitors is 5.34, providing a benchmark for relative valuation. Cognizant Technology Solutions Corp Corp (CTSH.O) exhibits a P/S ratio of 1.80, which is -66.24% above the industry average. Given its robust revenue growth of 7.36%, this premium appears unsustainable.
Performance Decomposition
AI Analysis for CTSH
1Y
3Y
5Y
Market capitalization of CTSH increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of CTSH in the past 1 year is driven by Unknown.
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Frequently Asked Questions
Is CTSH currently overvalued or undervalued?
Cognizant Technology Solutions Corp (CTSH) is now in the Undervalued zone, suggesting that its current forward PE ratio of 14.75 is considered Undervalued compared with the five-year average of 15.90. The fair price of Cognizant Technology Solutions Corp (CTSH) is between 91.91 to 110.75 according to relative valuation methord. Compared to the current price of 85.26 USD , Cognizant Technology Solutions Corp is Undervalued By 7.23% .
What is Cognizant Technology Solutions Corp (CTSH) fair value?
CTSH's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Cognizant Technology Solutions Corp (CTSH) is between 91.91 to 110.75 according to relative valuation methord.
How does CTSH's valuation metrics compare to the industry average?
The average P/S ratio for CTSH's competitors is 5.34, providing a benchmark for relative valuation. Cognizant Technology Solutions Corp Corp (CTSH) exhibits a P/S ratio of 1.80, which is -66.24% above the industry average. Given its robust revenue growth of 7.36%, this premium appears unsustainable.
What is the current P/B ratio for Cognizant Technology Solutions Corp (CTSH) as of Jan 10 2026?
As of Jan 10 2026, Cognizant Technology Solutions Corp (CTSH) has a P/B ratio of 2.64. This indicates that the market values CTSH at 2.64 times its book value.
What is the current FCF Yield for Cognizant Technology Solutions Corp (CTSH) as of Jan 10 2026?
As of Jan 10 2026, Cognizant Technology Solutions Corp (CTSH) has a FCF Yield of 6.76%. This means that for every dollar of Cognizant Technology Solutions Corp’s market capitalization, the company generates 6.76 cents in free cash flow.
What is the current Forward P/E ratio for Cognizant Technology Solutions Corp (CTSH) as of Jan 10 2026?
As of Jan 10 2026, Cognizant Technology Solutions Corp (CTSH) has a Forward P/E ratio of 14.75. This means the market is willing to pay $14.75 for every dollar of Cognizant Technology Solutions Corp’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Cognizant Technology Solutions Corp (CTSH) as of Jan 10 2026?
As of Jan 10 2026, Cognizant Technology Solutions Corp (CTSH) has a Forward P/S ratio of 1.80. This means the market is valuing CTSH at $1.80 for every dollar of expected revenue over the next 12 months.