Cognizant Technology Solutions (CTSH) Valuation
Historical valuation analysis based on 1279 data points (2021-09-14 to 2026-10-16)
Cognizant Technology Solutions is a multinational IT services provider that offers a range of consulting and business process outsourcing services. Originally founded in India, the company is headq...
Cognizant Technology Solutions (CTSH) currently trades at a P/E ratio of 13.40 (historical range: 7.89–26.19, median: 16.13), placing it at the 17th percentile — cheap relative to its history, P/S ratio of 1.37 (range: 0.81–2.74, 11th percentile — cheap relative to its history), EV/EBITDA of 8.96 (range: 5.19–18.41, 13th percentile).
Over the historical period (2021-09-14 to 2026-10-16), Cognizant Technology Solutions's P/E ratio has contracted by 11% over the observed period (from an average of 17.4 to 15.4).
Cognizant Technology Solutions trades well below its historical valuation range across most metrics.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 13.40 | 16.13 | 17th | cheap relative to its history |
| P/S Ratio | 1.37 | 1.82 | 11th | cheap relative to its history |
| EV/EBITDA | 8.96 | 11.91 | 13th | cheap relative to its history |
| FCF Yield | 8.73% | 6.13% | 89th | cheap relative to its history |
Cognizant Technology Solutions (CTSH) Valuation & P/E History
Cognizant Technology Solutions (CTSH) is a US-listed stock operating in the Technology sector, specifically the Services-Computer Programming Services industry currently trading at $65.88 with a market capitalization of $29.7 billion. This page provides historical valuation analysis for CTSH based on 1279 data points covering 2021-09-14 to 2026-10-16. The P/E ratio of 13.40 is below the historical median of 16.13, placing CTSH at the 17th percentile of its valuation range. The P/S ratio of 1.37 compares to a median of 1.82.
CTSH Valuation Metrics & Historical Range
The valuation table above shows Cognizant Technology Solutions's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether CTSH is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests CTSH is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Cognizant Technology Solutions.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is CTSH Overvalued or Undervalued?
Cognizant Technology Solutions trades well below its historical valuation range across most metrics. The overall valuation percentile of 14 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive CTSH is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full CTSH analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.CTSH trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.