# Cognizant Technology Solutions Corporation (CTSH) fundamentals

Data as of 2026-11-04. NASDAQ, United States. Sector: Technology / IT Services. Price $63.83, market value $28.5 billion.

## Valuation
- **P/E (trailing): 11.6×** (5-yr avg 16.8×, 3-yr avg 17.2×). Cognizant Technology Solutions Corporation trades at 11.6× trailing earnings, well below its own five-year average of 16.8×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 10.2×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 9.18**. A PEG of 9.18 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 1.3×**. Each dollar of revenue is priced at 1.3×.
- **Price / book: 1.9×**. The shares trade at 1.9× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 6.8×**. Enterprise value is 6.8× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 8.3%** (5-yr avg 6.0%). Free cash flow equals 8.3% of the market value, above its five-year average of 6.0%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 8.6%**. The inverse of the P/E: 8.6% of the price is earned each year.

## Profitability
- **Operating margin: 15.7%**. 15.7% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 10.6%**. 10.6% of each dollar of sales reaches the bottom line.
- **Return on equity: 14.9%**. 14.9% on shareholders' equity is solid.
- **Return on invested capital: 19.9%**. Return on all capital, debt included, is 19.9%: comfortably above what that capital costs.
- **Return on assets: 12.4%**. Each dollar of assets produces 12.4% of profit.

## Growth
- **Revenue growth (1 yr): 7.0%** (3-yr 2.8%/yr, 5-yr 4.9%/yr). Revenue grew 7.0% over the last year, against 4.9% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 1.1%** (3-yr 1.1%/yr, 5-yr 12.2%/yr). Earnings per share rose 1.1%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 5.1%/yr**. Free cash flow has compounded at 5.1% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.04**. Debt is 0.04 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Cognizant Technology Solutions Corporation holds more cash than debt.
- **Current ratio: 2.14** (quick 2.14). Current assets cover the next year's liabilities 2.14 times.
- **Altman Z-score: 5.83**. A Z-score of 5.83 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 2.07%** ($1.32 per share, trailing). Cognizant Technology Solutions Corporation yields 2.07%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 27%** (26% of free cash flow). 27% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 9**. 9 straight years of increases.
- **Dividend growth (5 yr): 7.1%/yr** (1-yr 3.3%). The dividend has grown 7.1% a year over five years.

## Analyst view
- **Analyst consensus: buy** (25 analysts). 25 analysts cover Cognizant Technology Solutions Corporation; the consensus is buy, with an average price target of $69.50 (+9% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -9.2%** (YTD -20.6%, 3-mo 18.0%). The shares are down 9.2% over twelve months including dividends.
- **From 52-week high: -26.7%** (72.1% above the low). Trading 27% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 52**. An RSI of 52 is neutral.
- **Beta (1 yr): 0.13** (volatility 43%). Beta of 0.13 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=CTSH · Page: https://foliofundamentals.com/stocks/ctsh

Not investment advice.