Cognizant Technology Solutions Corporation

LSE:0QZ5 Stock Report

Market Cap: US$32.1b

Cognizant Technology Solutions Valuation

Is 0QZ5 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • 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 0QZ5 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

US$120.08
Fair Value
44.8% undervalued intrinsic discount
21
Number of Analysts

Below Fair Value: 0QZ5 ($66.27) is trading below our estimate of fair value ($120.08)

Significantly Below Fair Value: 0QZ5 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0QZ5?

Key metric: As 0QZ5 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0QZ5. This is calculated by dividing 0QZ5's market cap by their current earnings.
What is 0QZ5's PE Ratio?
PE Ratio13.2x
EarningsUS$2.44b
Market CapUS$32.14b

Price to Earnings Ratio vs Peers

How does 0QZ5's PE Ratio compare to its peers?

The above table shows the PE ratio for 0QZ5 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.5x
SCT Softcat
25.3x8.13%UK£3.1b
CCC Computacenter
17.6x10.04%UK£2.8b
KNOS Kainos Group
33.3x15.96%UK£1.1b
FDM FDM Group (Holdings)
9.8x-10.82%UK£148.0m
0QZ5 Cognizant Technology Solutions
13.2x6.46%US$32.1b

Price-To-Earnings vs Peers: 0QZ5 is good value based on its Price-To-Earnings Ratio (13.2x) compared to the peer average (21.5x).

Price to Earnings Ratio vs Industry

How does 0QZ5's PE Ratio compare vs other companies in the European IT Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0QZ5 13.2xIndustry Avg. 19.0xNo. of Companies27PE01632486480+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0QZ5 is good value based on its Price-To-Earnings Ratio (13.2x) compared to the European IT industry average (19x).

Price to Earnings Ratio vs Fair Ratio

What is 0QZ5'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.

0QZ5 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.2x
Fair PE Ratio42.7x

Price-To-Earnings vs Fair Ratio: 0QZ5 is good value based on its Price-To-Earnings Ratio (13.2x) compared to the estimated Fair Price-To-Earnings Ratio (42.7x).

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 0QZ5 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$66.44
US$86.71
+30.51%
8.54%US$103.00US$75.00n/a21
Oct ’26US$65.99
US$86.71
+31.40%
8.54%US$103.00US$75.00n/a21
Sep ’26US$72.15
US$86.63
+20.07%
8.75%US$103.00US$75.00n/a22
Aug ’26US$70.97
US$88.08
+24.11%
8.10%US$103.00US$75.00n/a23
Jul ’26US$80.32
US$87.30
+8.69%
6.88%US$103.00US$79.00n/a23
Jun ’26US$80.25
US$87.29
+8.77%
7.09%US$103.00US$79.00n/a23
May ’26US$76.02
US$86.42
+13.68%
7.17%US$103.00US$76.00n/a23
Apr ’26US$76.35
US$89.07
+16.67%
7.74%US$103.00US$80.00n/a23
Mar ’26US$82.96
US$87.35
+5.30%
9.28%US$103.00US$68.00n/a23
Feb ’26US$82.78
US$84.74
+2.37%
7.99%US$100.00US$71.00n/a23
Jan ’26US$76.75
US$84.92
+10.64%
7.64%US$100.00US$75.00n/a23
Dec ’25US$80.49
US$84.05
+4.42%
7.51%US$100.00US$75.00n/a23
Nov ’25US$74.19
US$83.44
+12.47%
7.63%US$100.00US$75.00n/a23
Oct ’25US$76.20
US$82.31
+8.02%
7.46%US$94.00US$70.00US$65.9923
Sep ’25US$77.28
US$81.22
+5.10%
7.77%US$94.00US$70.00US$72.1524
Aug ’25US$76.55
US$78.92
+3.10%
8.38%US$94.00US$70.00US$70.9724
Jul ’25US$67.59
US$76.75
+13.55%
9.49%US$94.00US$65.00US$80.3224
Jun ’25US$65.12
US$77.25
+18.64%
9.60%US$94.00US$65.00US$80.2524
May ’25US$65.77
US$78.00
+18.60%
9.75%US$94.00US$64.00US$76.0225
Apr ’25US$73.38
US$79.12
+7.82%
10.09%US$94.00US$65.00US$76.3526
Mar ’25US$78.66
US$78.50
-0.20%
11.29%US$94.00US$65.00US$82.9626
Feb ’25US$77.43
US$76.23
-1.55%
10.74%US$94.00US$65.00US$82.7826
Jan ’25US$75.37
US$73.08
-3.05%
10.20%US$94.00US$60.00US$76.7526
Dec ’24US$70.62
US$71.77
+1.63%
10.21%US$94.00US$60.00US$80.4926
Nov ’24US$65.13
US$74.10
+13.77%
10.13%US$94.00US$61.00US$74.1924
Oct ’24US$68.10
US$72.93
+7.10%
10.84%US$94.00US$61.00US$76.2024
US$87.33
Fair Value
24.1% undervalued intrinsic discount
21
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/10/13 20:33
End of Day Share Price 2025/10/13 00:00
Earnings2025/06/30
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Cognizant Technology Solutions Corporation is covered by 57 analysts. 24 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ashwin MehtaAmbit Capital
Nitin BhasinAmbit Capital
James KelleherArgus Research Company