Information Technology · IT Consulting & Other Services · US stock · price as of 16 Oct 2026
Key indicators
Price
$66.03
52-week range
$36.86 – $85.48
Market cap
$31.5B
P/E (trailing)
14.4×
EV / EBITDA
7.8×
Free-cash-flow yield
7.8%
Dividend yield
2.0%
Revenue (last 12 months)
$21.4B
Revenue growth (3y a year)
2.8%
Operating margin
15.8%
Return on invested capital
16.8%
Net debt / EBITDA
-0.2×
Fair value
Blended fair value$143.23 range $138 – $147
Versus priceUndervalued+117% to fair value
Peer multiples
$159.69
Fundamentals-adjusted multiple
$148.68
10-year DCF (market-scaled)
$121.32
Earnings power value (floor, not blended)
$53.78
Model uncertainty
Medium
X-Ray Score
64/ 100 · High confidence · ahead of 88% of sector peers
Valuation94
Growth26
Profitability50
Financial health85
Dividends50
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
Cognizant Technology Solutions is an information technology services company. It helps clients modernize systems, build software, run cloud and data projects, and operate business processes, with much of its delivery work carried out by teams in India and other locations. Customers are mostly in financial services, health care, retail and manufacturing. Revenue comes from fees for consulting, project work and multi-year outsourcing contracts, usually billed on time and materials or fixed terms.
Sales reached $21.4 billion in the last twelve months, having grown 2.8% a year over the past three years. Operating profit equals 15.8% of revenue. Return on invested capital is 17%. Net debt to EBITDA is -0.2 times, which means the company holds more cash than debt. It pays a dividend, and the yield is 2.0%.
StocksXray gives Cognizant Technology Solutions Corp an X-Ray Score of 64 out of 100 (high confidence), ahead of 88% of the S&P 500 stocks in its sector. Its strongest lens is valuation (94) and its weakest is growth (26).
Our fair value blend is $143.23 (range $138.48 to $147.47). At $66.03 the stock trades 54% below that blend, so the label is "Undervalued" with medium model uncertainty. Fair value is a range, not a price target.
XStocksXray
Cognizant Technology Solutions Corp (CTSH)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2021
FY2022
FY2023
FY2024
FY2025
Now
Price
$81.68
$53.47
$71.85
$74.33
$81.52
$66.03
Market cap
$43.1B
$27.8B
$36.3B
$36.9B
$39.9B
$31.5B
P/E
20.2×
12.1×
17.1×
16.5×
17.9×
14.4×
EV / revenue
2.2×
1.3×
1.8×
1.8×
1.8×
1.4×
EV / EBITDA
12.1×
7.3×
10.6×
10.4×
9.8×
7.8×
Price / free cash flow
19.5×
12.4×
18.0×
20.2×
15.4×
12.8×
Free-cash-flow yield
5.1%
8.1%
5.5%
4.9%
6.5%
7.8%
Price / book
3.6×
2.3×
2.7×
2.6×
2.7×
2.1×
Dividend yield
1.18%
2.02%
1.61%
1.61%
1.52%
1.97%
Fundamentals checklist ● 8 Good · ● 3 Average · ● 4 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−2.6%Bad
Free-cash-flow yield7.8%Good
Risk models
Altman Z score7.8×Good
Piotroski F-Score8 of 9Good
Growth
EPS growth (3y)1.1%Average
Free-cash-flow growth (3y)5.1%Bad
Revenue growth (3y)2.8%Bad
Growth consistency70%Bad
Balance sheet
Current ratio2.2×Good
Net debt / EBITDA-0.2×Good
Interest coverno interest costGood
Valuation
Fair value vs price2.2×Good
EBIT / EV yield11.1%Good
Profitability
Return on invested capital16.8%Average
Operating margin15.8%Average
XStocksXray
Cognizant Technology Solutions Corp (CTSH)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY21
FY22
FY23
FY24
FY25
LTM
Revenue
18,507
19,428
19,353
19,736
21,108
21,406
Gross profit
–
–
–
–
–
–
Operating income
2,826
2,968
2,689
2,892
3,389
3,379
Net income
2,137
2,290
2,126
2,240
2,230
2,229
Diluted EPS ($)
4.05
4.41
4.21
4.51
4.56
4.58
Free cash flow
2,216
2,236
2,013
1,827
2,595
2,470
Gross margin
–
–
–
–
–
–
Operating margin
15.3%
15.3%
13.9%
14.7%
16.1%
15.8%
Net margin
11.5%
11.8%
11.0%
11.3%
10.6%
10.4%
Balance sheet
FY21
FY22
FY23
FY24
FY25
LTM
Total assets
17,852
17,852
18,483
19,966
20,692
20,500
Cash
1,792
2,191
2,621
2,231
1,901
1,504
Total debt
664
646
639
908
576
568
Equity
11,991
12,309
13,227
14,408
15,015
15,068
Dividend per share ($)
0.96
1.08
1.16
1.20
1.24
–
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.