Cognizant Technology Solutions Corporation

BRSE:CTSH Stock Report

Market Cap: CHF 32.3b

Cognizant Technology Solutions Valuation

Is CTSH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CTSH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CTSH (CHF62.32) is trading below our estimate of fair value (CHF129.56)

Significantly Below Fair Value: CTSH is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CTSH?

Other financial metrics that can be useful for relative valuation.

CTSH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.9x
Enterprise Value/EBITDA10.7x
PEG Ratio2.1x

Price to Earnings Ratio vs Peers

How does CTSH's PE Ratio compare to its peers?

The above table shows the PE ratio for CTSH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.2x
6702 Fujitsu
17.7x3.5%JP¥4.6t
IT Gartner
44.4x9.9%US$37.1b
CAP Capgemini
18.6x8.8%€31.4b
507685 Wipro
24.2x9.2%₹2.7t
CTSH Cognizant Technology Solutions
17.3x8.4%CHF 38.0b

Price-To-Earnings vs Peers: CTSH is good value based on its Price-To-Earnings Ratio (17.3x) compared to the peer average (26.2x).

Price to Earnings Ratio vs Industry

How does CTSH's PE Ratio compare vs other companies in the European IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.4%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.4%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: CTSH is good value based on its Price-To-Earnings Ratio (17.3x) compared to the European IT industry average (19.9x).

Price to Earnings Ratio vs Fair Ratio

What is CTSH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CTSH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CTSH's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CTSH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF 62.32
CHF 69.33
+11.3%
8.4%CHF 81.37CHF 60.59n/a23
Aug ’25CHF 62.32
CHF 68.95
+10.6%
8.4%CHF 82.12CHF 61.15n/a24
Jul ’25CHF 62.32
CHF 69.31
+11.2%
9.5%CHF 84.89CHF 58.70n/a24
Jun ’25CHF 62.32
CHF 70.37
+12.9%
9.6%CHF 85.62CHF 59.20n/a24
May ’25CHF 62.32
CHF 71.70
+15.1%
9.8%CHF 86.41CHF 58.83n/a25
Apr ’25CHF 62.32
CHF 71.56
+14.8%
10.1%CHF 85.02CHF 58.79n/a26
Mar ’25CHF 62.32
CHF 69.17
+11.0%
11.3%CHF 82.83CHF 57.28n/a26
Feb ’25CHF 62.32
CHF 65.66
+5.4%
10.7%CHF 80.97CHF 55.99n/a26
Jan ’25CHF 62.32
CHF 62.37
+0.07%
10.2%CHF 80.22CHF 51.21n/a26
Dec ’24CHF 62.32
CHF 63.46
+1.8%
10.2%CHF 83.12CHF 53.05n/a26
Nov ’24CHF 62.32
CHF 66.81
+7.2%
10.1%CHF 84.75CHF 55.00n/a24
Oct ’24CHF 62.32
CHF 65.48
+5.1%
10.8%CHF 84.39CHF 54.76n/a24
Sep ’24CHF 62.32
CHF 63.80
+2.4%
9.8%CHF 82.77CHF 53.71n/a25
Aug ’24CHF 62.32
CHF 58.92
-5.5%
12.1%CHF 79.11CHF 46.95CHF 62.3225
Jul ’24CHF 62.32
CHF 60.33
-3.2%
13.9%CHF 81.88CHF 47.69CHF 62.3225
Jun ’24CHF 62.32
CHF 60.72
-2.6%
14.1%CHF 82.35CHF 47.96CHF 62.3224
May ’24CHF 62.32
CHF 59.71
-4.2%
15.7%CHF 81.55CHF 43.91CHF 62.3223
Apr ’24CHF 62.32
CHF 62.07
-0.4%
15.3%CHF 84.07CHF 45.27CHF 62.3223
Mar ’24CHF 62.32
CHF 62.07
-0.4%
15.3%CHF 84.07CHF 45.27CHF 62.3223
Feb ’24CHF 62.32
CHF 59.95
-3.8%
16.7%CHF 86.05CHF 41.64CHF 62.3223
Jan ’24CHF 62.32
CHF 59.93
-3.8%
16.0%CHF 86.18CHF 41.70CHF 62.3221
Dec ’23CHF 62.32
CHF 61.61
-1.1%
16.6%CHF 87.61CHF 42.39CHF 62.3221
Nov ’23CHF 62.32
CHF 73.05
+17.2%
15.6%CHF 96.13CHF 55.07CHF 62.3221
Oct ’23CHF 62.32
CHF 76.40
+22.6%
15.1%CHF 96.70CHF 54.27CHF 62.3221
Sep ’23CHF 62.32
CHF 75.75
+21.6%
13.9%CHF 94.71CHF 53.16CHF 62.3221
Aug ’23CHF 62.32
CHF 75.34
+20.9%
13.8%CHF 93.29CHF 52.36CHF 62.3222

Analyst Forecast: Target price is less than 20% higher than the current share price.

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