Cognizant (CTSH) Stock Analysis
NMS · Technology · Information Technology Services
$55.88
-1.45 (-2.52%)
CTSH Interactive Price Chart & Trading Signals
CTSH Stock Snapshot — Valuation, Risk & Technical Signals
CTSH Key Fundamentals, Analyst Targets & Company Profile
Key Financial Ratios
Market Cap
$25.17B
P/E Ratio
11.99
Forward P/E
8.83
PEG Ratio
0.84
P/B Ratio
1.75
EPS
$4.66
Dividend Yield
2.30%
52W Range
$37.08 – $87.03
Beta
0.83
Volume
0.2M
ROE
14.9%
Profit Margin
10.3%
Revenue Growth
4.5%
Gross Margin
33.4%
EV/EBITDA
6.66
Analyst Target
$65.10
The trailing price-to-earnings ratio stands at 12.0x. Forward P/E of 8.8x implies earnings expansion expected. Price-to-book is 1.75x. EV/EBITDA sits at 6.66x. Market capitalization is $25.17B. Revenue is growing at 4.5% on a trailing basis. Earnings are expanding at 3.8%. Profit margins are 10.3%. Return on equity is 14.9%. Beta of 0.83 indicates market-average volatility.
Analyst Consensus
Recommendation
Buy
Low Target
$47.00
Mean Target
$65.10
High Target
$84.00
Based on 25 analysts
About Cognizant
Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services; Health Sciences; Products and Resources; and Communications, Media and Technology. The company provides services including artificial intelligence (AI) and other technology services and solutions, consulting, application development, systems integration, quality engineering and assurance, engineering research and development, application maintenance, infrastructure, security, and business process services and automation. It also offers AI-led automation, which includes advisory, and process and IT automation solutions designed to simplify and accelerate automation adoption; business process outsourcing services, which help deliver business outcomes including revenue growth, increased customer and employee satisfaction, and cost savings; and Cognizant Moment, a digital experience service that uses AI to reimagine customer experiences and engineer strategies aimed at driving growth. In addition, the company develops, licenses, implements, and supports proprietary and third-party software products and platforms; and develops industry-specific products and services. It offers solution to healthcare providers and payers, life sciences companies, banking, capital markets, payments and insurance companies, manufacturers, automakers, retailers, consumer goods, travel and hospitality, communications, media and entertainment, education, information services, and technology companies, as well as businesses providing logistics, energy, and utility services. The company has a strategic partnership with Uniphore Technologies Inc. for the development of AI solutions that combine small language models and AI agents. Cognizant Technology Solutions Corporation was incorporated in 1988 and is headquartered in Teaneck, New Jersey.
CTSH Deep Dive Analysis
Bottom Line
Verdict
UndervaluedBest for
Value-oriented investorsWatch out for
None flaggedNon-zero inputs
4/5Counts non-zero values for price, P/E, beta, macro risk, and revenue growth; zero may mean unavailable or be a genuine zero.
Cognizant Technology Solutions Corporation (CTSH) trades below our multi-model fair value estimate of $114.20 by approximately 104.3%. Trailing P/E: 12.0x. Profitability signals include profit margin of 10.3% and return on equity of 14.9%. Recent growth metrics show revenue growth of 4.5% and earnings growth of 3.8%. Risk profile: beta of 0.83. Consensus: buy.
Valuation, Growth & Risk
Valuation
Undervalued
P/E 12.0x
Price sits below our estimate of fair value.
Growth
Stable
Rev 4.5%
Revenue is moving sideways.
Valuation Snapshot
Cognizant Technology Solutions Corporation (CTSH) trades below our multi-model fair value estimate of $114.20 by approximately 104.3%. The trailing price-to-earnings ratio stands at 12.0x. Forward P/E of 8.8x suggests earnings compression ahead. Price-to-sales is 1.2x. Price-to-book is 1.7x. EV/EBITDA sits at 6.7x. Market capitalization is $25.17B.
Why it matters: Buying below fair value can create a margin of safety, but always check earnings quality.
Growth & Profitability
Revenue is growing at 4.5% on a trailing basis. Earnings are expanding at 3.8%. Profit margins are 10.3%. Return on equity is 14.9%. Return on assets is 10.7%.
Why it matters: Stable revenue is fine, but watch for margin pressure that could limit profit growth.
Risk Profile
Beta of 0.83 indicates market-average volatility. Net debt position is $1.04B.
Why it matters: Lower risk means steadier returns, but often with less upside in bull markets.
Analyst Context
Analyst consensus target of $65.10 implies 16.5% upside. Target range spans $47.00 to $84.00. 25 analysts cover the stock. Consensus recommendation: buy.
Why it matters: Analyst targets reflect what professionals expect over 12 months. A wide gap between price and target can mean the market disagrees with the consensus.
Investor Fit
The combination of undervaluation and moderate risk may suit value-oriented investors. Free cash flow yield of 10.3% is attractive for cash-flow-focused investors.
Takeaway: Match the stock's risk-reward profile with your own goals and time horizon. No single metric tells the whole story.
Data Methodology & Sources
Market Data (Facts)
- Price, volume, and market cap: Yahoo Finance (may be delayed)
- P/E, EPS, revenue, and debt: Yahoo Finance fundamentals
- Analyst estimates: Yahoo Finance (coverage and update times vary)
- Insider transactions: Yahoo Finance (reporting may be delayed)
QuantSoar Model (Derived)
- Fair value: available outputs from seven models; outliers are filtered using MAD (k=3.5), then combined with fixed model weights.
- Margin of Safety = (Fair Value − Displayed Price) / Displayed Price × 100
- Composite Score: 40% Value + 30% Momentum + 30% Risk
- Verdict Gauge: Base 50 + Valuation (up to ±25) + Whale sentiment (up to ±10) + Insider buying (+5) + Macro risk (up to ±10) + Technical signal (up to ±10). Analyst consensus is separate.
Model outputs are estimates based on available data and are not investment advice. Cross-check with primary sources before making investment decisions.
CTSH Undervalued
Cognizant Technology Solutions Corporation (CTSH) trades below our multi-model fair value estimate of $114.20 by approximately 104.3%.
Frequently Asked Questions
ValuationIs CTSH stock overvalued right now?
ValuationWhat is CTSH fair value based on current fundamentals?
RiskHow risky is CTSH compared with other stocks?
GrowthIs CTSH still growing?
AnalystWhat do analysts think about CTSH?
DividendDoes CTSH pay a dividend?
CatalystWhat could change the investment case for CTSH?
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About the Author
Phasakorn Traklang (Peach) — Founder
Phasakorn Traklang (Peach) is the founder of QuantSoar, bringing expertise in SEO, web development, and technical analytics to build an AI-powered investment platform accessible to retail investors worldwide.
Connect on LinkedInInvestment Disclaimer: Tax treatment can depend on tax residence, account type, and tax year. This information is general and is not personal tax or investment advice. SEC
Data: Yahoo Finance / SEC EDGAR / Alpha Vantage / Finnhub. AI outputs verified against source data.