Cognizant Technology Solutions Valuation
Is CTSH * undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation 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 * (MX$1400) is trading below our estimate of fair value (MX$1777.64)
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 *?
Key metric: As CTSH * is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is CTSH *'s PE Ratio? | |
|---|---|
| PE Ratio | 18.1x |
| Earnings | US$2.25b |
| Market Cap | US$40.82b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 2.1x |
| Enterprise Value/EBITDA | 11.7x |
| PEG Ratio | 1.9x |
Price to Earnings Ratio vs Peers
How does CTSH *'s PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 25.2x | ||
6702 Fujitsu | 20.4x | 8.5% | JP¥5.2t |
IT Gartner | 38.9x | 0.5% | US$42.6b |
507685 Wipro | 25.2x | 8.1% | ₹3.0t |
CAP Capgemini | 16.4x | 6.1% | €27.6b |
CTSH * Cognizant Technology Solutions | 18.1x | 9.4% | Mex$40.8b |
Price-To-Earnings vs Peers: CTSH * is good value based on its Price-To-Earnings Ratio (18.1x) compared to the peer average (25.5x).
Price to Earnings Ratio vs Industry
How does CTSH *'s PE Ratio compare vs other companies in the Global IT Industry?
| 18 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 18 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: CTSH * is good value based on its Price-To-Earnings Ratio (18.1x) compared to the Global IT industry average (23.5x).
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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 18.1x |
| Fair PE Ratio | n/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?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | n/a | Mex$1,688.85 0% | 7.8% | Mex$2,019.17 | Mex$1,514.38 | n/a | 22 |
| Nov ’25 | Mex$1,400.00 | Mex$1,687.78 +20.6% | 7.7% | Mex$2,027.66 | Mex$1,520.75 | n/a | 22 |
| Oct ’25 | n/a | Mex$1,620.60 0% | 7.5% | Mex$1,850.67 | Mex$1,378.16 | n/a | 23 |
| Sep ’25 | n/a | Mex$1,600.39 0% | 7.8% | Mex$1,852.26 | Mex$1,379.34 | n/a | 24 |
| Aug ’25 | n/a | Mex$1,481.50 0% | 8.4% | Mex$1,764.58 | Mex$1,314.05 | n/a | 24 |
| Jul ’25 | n/a | Mex$1,409.61 0% | 9.5% | Mex$1,726.34 | Mex$1,193.74 | n/a | 24 |
| Jun ’25 | n/a | Mex$1,285.02 0% | 9.6% | Mex$1,563.58 | Mex$1,081.20 | n/a | 24 |
| May ’25 | Mex$1,105.00 | Mex$1,335.89 +20.9% | 9.8% | Mex$1,609.92 | Mex$1,096.12 | n/a | 25 |
| Apr ’25 | n/a | Mex$1,315.81 0% | 10.1% | Mex$1,563.36 | Mex$1,081.05 | n/a | 26 |
| Mar ’25 | n/a | Mex$1,341.89 0% | 11.3% | Mex$1,606.85 | Mex$1,111.12 | n/a | 26 |
| Feb ’25 | n/a | Mex$1,312.88 0% | 10.7% | Mex$1,618.92 | Mex$1,119.46 | n/a | 26 |
| Jan ’25 | n/a | Mex$1,241.01 0% | 10.2% | Mex$1,596.34 | Mex$1,018.94 | n/a | 26 |
| Dec ’24 | n/a | Mex$1,233.68 0% | 10.2% | Mex$1,615.82 | Mex$1,031.38 | n/a | 26 |
| Nov ’24 | Mex$1,177.00 | Mex$1,337.74 +13.7% | 10.1% | Mex$1,697.03 | Mex$1,101.26 | Mex$1,400.00 | 24 |
| Oct ’24 | n/a | Mex$1,245.20 0% | 10.8% | Mex$1,604.90 | Mex$1,041.48 | n/a | 24 |
| Sep ’24 | n/a | Mex$1,226.09 0% | 9.8% | Mex$1,590.68 | Mex$1,032.25 | n/a | 25 |
| Aug ’24 | n/a | Mex$1,130.51 0% | 12.1% | Mex$1,518.01 | Mex$900.80 | n/a | 25 |
| Jul ’24 | Mex$1,100.00 | Mex$1,147.37 +4.3% | 13.9% | Mex$1,557.19 | Mex$906.94 | n/a | 25 |
| Jun ’24 | Mex$1,097.33 | Mex$1,187.71 +8.2% | 14.1% | Mex$1,610.89 | Mex$938.21 | n/a | 24 |
| May ’24 | n/a | Mex$1,194.43 0% | 15.7% | Mex$1,631.50 | Mex$878.50 | Mex$1,105.00 | 23 |
| Apr ’24 | n/a | Mex$1,253.54 0% | 15.3% | Mex$1,697.83 | Mex$914.22 | n/a | 23 |
| Mar ’24 | n/a | Mex$1,253.54 0% | 15.3% | Mex$1,697.83 | Mex$914.22 | n/a | 23 |
| Feb ’24 | Mex$1,213.25 | Mex$1,216.16 +0.2% | 16.7% | Mex$1,745.54 | Mex$844.61 | n/a | 23 |
| Jan ’24 | n/a | Mex$1,270.36 0% | 16.0% | Mex$1,826.97 | Mex$884.02 | n/a | 21 |
| Dec ’23 | n/a | Mex$1,265.71 0% | 16.6% | Mex$1,799.87 | Mex$870.90 | n/a | 21 |
| Nov ’23 | n/a | Mex$1,445.51 0% | 15.6% | Mex$1,902.18 | Mex$1,089.79 | Mex$1,177.00 | 21 |
Analyst Forecast: Target price is less than 20% higher than the current share price.
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