Cognizant Technology Solutions Corporation (CTSH) Financial Ratios
28 years of historical data (1998–2025) · Technology · Information Technology Services
EV/EBITDA
↓
5.00
↓-54% vs avg
5yr avg: 10.79
30Y Low7.9·High52.0
P/FCF
↓
7.98
↓-56% vs avg
5yr avg: 17.94
30Y Low13.3·High83.9
P/B Ratio
↓
1.40
↓-52% vs avg
5yr avg: 2.90
30Y Low2.4·High23.4
ROE
↓
15.2%
-11% vs avg
5yr avg: 17.1%
30Y Low13%·High32%
Debt/EBITDA
↓
0.39
↓-10% vs avg
5yr avg: 0.43
30Y Low0.2·High0.8
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
CTSH Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Cognizant Technology Solutions Corporation trades at 9.6x earnings, 45% below its 5-year average of 17.6x, sitting at the 0th percentile of its historical range. Compared to the Technology sector median P/E of 29.0x, the stock trades at a discount of 67%. On a free-cash-flow basis, the stock trades at 8.0x P/FCF, 56% below the 5-year average of 17.9x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $20.7B | $40.0B | $38.2B | $38.1B | $29.7B | $46.8B | $44.3B | $34.7B | $37.1B | $42.3B | $34.2B |
| Enterprise Value | $20.4B | $39.7B | $37.5B | $36.8B | $29.0B | $46.7B | $43.4B | $33.8B | $36.7B | $41.2B | $33.0B |
| P/E Ratio → | 9.60 | 18.24 | 17.05 | 17.94 | 12.97 | 21.91 | 31.89 | 18.85 | 17.63 | 28.07 | 21.97 |
| P/S Ratio | 0.98 | 1.90 | 1.94 | 1.97 | 1.53 | 2.53 | 2.66 | 2.07 | 2.30 | 2.85 | 2.53 |
| P/B Ratio | 1.40 | 2.66 | 2.65 | 2.88 | 2.41 | 3.91 | 4.09 | 3.15 | 3.25 | 3.96 | 3.19 |
| P/FCF | 7.98 | 15.42 | 20.92 | 18.95 | 13.27 | 21.14 | 15.28 | 16.48 | 16.74 | 19.90 | 25.87 |
| P/OCF | 7.18 | 13.88 | 17.99 | 16.37 | 11.56 | 18.78 | 13.44 | 13.90 | 14.30 | 17.56 | 21.08 |
P/E links to full P/E history page with 30-year chart
CTSH EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Cognizant Technology Solutions Corporation's enterprise value stands at 5.0x EBITDA, 54% below its 5-year average of 10.8x. The Technology sector median is 16.7x, placing the stock at a 70% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.88 | 1.90 | 1.90 | 1.49 | 2.52 | 2.61 | 2.01 | 2.27 | 2.78 | 2.45 |
| EV / EBITDA | 5.00 | 9.73 | 10.92 | 11.36 | 8.21 | 13.73 | 16.24 | 11.34 | 11.11 | 14.09 | 12.38 |
| EV / EBIT | 5.78 | 10.95 | 12.53 | 13.03 | 9.56 | 16.46 | 20.48 | 13.15 | 12.98 | 15.39 | 13.90 |
| EV / FCF | — | 15.29 | 20.52 | 18.30 | 12.98 | 21.07 | 14.96 | 16.03 | 16.55 | 19.41 | 25.00 |
CTSH Profitability
Margins and return-on-capital ratios measuring operating efficiency
Cognizant Technology Solutions Corporation earns an operating margin of 16.7%. Operating margins have expanded from 13.9% to 16.7% over the past 3 years, signaling improving operational efficiency. ROE of 15.2% indicates solid capital efficiency. ROIC of 18.7% represents solid returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 33.7% | 33.7% | 34.3% | 34.6% | 35.9% | 37.3% | 35.9% | 36.6% | 39.0% | 38.2% | 39.9% |
| Operating Margin | 16.7% | 16.7% | 14.7% | 13.9% | 15.3% | 15.3% | 12.7% | 14.6% | 17.4% | 16.8% | 17.0% |
| Net Profit Margin | 10.6% | 10.6% | 11.3% | 11.0% | 11.8% | 11.5% | 8.4% | 11.0% | 13.0% | 10.2% | 11.5% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 15.2% | 15.2% | 16.2% | 16.7% | 18.8% | 18.7% | 12.7% | 16.4% | 19.0% | 14.1% | 15.5% |
| ROA | 11.0% | 11.0% | 11.7% | 11.7% | 12.8% | 12.3% | 8.4% | 11.5% | 13.5% | 10.2% | 11.4% |
| ROIC | 18.7% | 18.7% | 16.9% | 17.1% | 19.0% | 19.5% | 15.9% | 17.5% | 20.4% | 19.4% | 19.1% |
| ROCE | 21.1% | 21.1% | 18.3% | 18.1% | 20.6% | 20.4% | 15.9% | 18.6% | 22.0% | 20.5% | 20.6% |
CTSH Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Cognizant Technology Solutions Corporation carries a Debt/EBITDA ratio of 0.4x, which is very conservative (87% below the sector average of 2.9x). The company holds a net cash position — cash of $1.9B exceeds total debt of $1.6B, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns. Interest coverage of 97.9x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.10 | 0.10 | 0.10 | 0.10 | 0.12 | 0.14 | 0.16 | 0.15 | 0.07 | 0.08 | 0.08 |
| Debt / EBITDA | 0.39 | 0.39 | 0.44 | 0.41 | 0.43 | 0.48 | 0.66 | 0.57 | 0.23 | 0.30 | 0.33 |
| Net Debt / Equity | — | -0.02 | -0.05 | -0.10 | -0.05 | -0.01 | -0.09 | -0.09 | -0.04 | -0.10 | -0.11 |
| Net Debt / EBITDA | -0.08 | -0.08 | -0.21 | -0.40 | -0.19 | -0.04 | -0.34 | -0.32 | -0.13 | -0.36 | -0.43 |
| Debt / FCF | — | -0.13 | -0.40 | -0.65 | -0.29 | -0.07 | -0.32 | -0.46 | -0.19 | -0.50 | -0.88 |
| Interest Coverage | 97.92 | 97.92 | 55.41 | 68.98 | 159.74 | 315.11 | 88.33 | 98.81 | 104.59 | 116.43 | 125.05 |
Net cash position: cash ($1.9B) exceeds total debt ($1.6B)
CTSH Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Cognizant Technology Solutions Corporation's current ratio of 2.34x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The current ratio has improved from 2.25x to 2.34x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.34 | 2.34 | 2.09 | 2.25 | 2.17 | 2.08 | 1.94 | 2.55 | 3.12 | 3.21 | 3.56 |
| Quick Ratio | 2.34 | 2.34 | 2.09 | 2.25 | 2.17 | 2.08 | 1.94 | 2.55 | 3.12 | 3.21 | 3.56 |
| Cash Ratio | 0.52 | 0.52 | 0.63 | 0.79 | 0.75 | 0.77 | 0.77 | 1.15 | 1.62 | 1.78 | 2.14 |
| Asset Turnover | — | 1.02 | 0.99 | 1.05 | 1.09 | 1.04 | 0.98 | 1.04 | 1.01 | 0.97 | 0.95 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 76.76 | 75.07 | 72.59 | 71.32 | 70.15 | 67.66 | 70.81 | 72.21 | 79.41 | 78.62 |
CTSH Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Cognizant Technology Solutions Corporation returns 9.6% to shareholders annually — split between a 2.9% dividend yield and 6.7% buyback yield. The payout ratio of 27.4% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 10.4% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.9% | 1.5% | 1.6% | 1.5% | 1.9% | 1.1% | 1.1% | 1.3% | 1.3% | 0.6% | — |
| Payout Ratio | 27.4% | 27.4% | 26.8% | 27.8% | 24.6% | 23.8% | 34.5% | 24.6% | 22.3% | 17.6% | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 10.4% | 5.5% | 5.9% | 5.6% | 7.7% | 4.6% | 3.1% | 5.3% | 5.7% | 3.6% | 4.6% |
| FCF Yield | 12.5% | 6.5% | 4.8% | 5.3% | 7.5% | 4.7% | 6.5% | 6.1% | 6.0% | 5.0% | 3.9% |
| Buyback Yield | 6.7% | 3.4% | 1.6% | 2.8% | 4.8% | 1.6% | 3.7% | 6.5% | 3.4% | 4.5% | 1.5% |
| Total Shareholder Yield | 9.6% | 5.0% | 3.2% | 4.3% | 6.7% | 2.7% | 4.7% | 7.8% | 4.7% | 5.1% | 1.5% |
| Shares Outstanding | — | $482M | $497M | $505M | $519M | $528M | $541M | $560M | $584M | $595M | $610M |
Peer Comparison
Compare CTSH with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 CTSHYou | $21B | 9.6 | 5.0 | 8.0 | 33.7% | 16.7% | 15.2% | 18.7% | 0.4 |
 ACN | $80B | 10.7 | 6.1 | 7.4 | 31.9% | 14.7% | 25.0% | 26.8% | 0.6 |
 INFY | $43B | 13.9 | 8.8 | 10.5 | 30.5% | 21.1% | 28.9% | 31.8% | 0.2 |
 WIT | $25B | 18.1 | 13.4 | 15.4 | 30.7% | 17.0% | 16.8% | 13.4% | 1.1 |
 EPAM | $4B | 11.4 | 4.4 | 6.5 | 26.5% | 9.6% | 10.3% | 15.5% | 0.2 |
 GLOB | $1B | 13.4 | 4.7 | 5.1 | 35.0% | 7.0% | 4.9% | 5.5% | 1.4 |
 KFRC | $830M | 23.2 | 16.1 | 17.7 | 26.8% | 3.8% | 24.9% | 19.1% | 1.3 |
 IBM | $234B | 22.3 | 18.7 | 20.2 | 59.5% | 15.3% | 35.2% | 9.8% | 4.4 |
 DXC | $1B | 86.0 | 2.8 | 1.4 | 14.8% | 2.0% | 0.5% | 3.2% | 3.0 |
 LDOS | $13B | 9.6 | 7.6 | 8.3 | 17.7% | 12.3% | 30.9% | 17.1% | 2.5 |
 SAIC | $4B | 13.3 | 10.2 | 7.5 | 12.1% | 7.2% | 23.3% | 9.9% | 4.0 |
| Technology Median | — | 29.0 | 16.7 | 19.2 | 48.8% | 0.2% | 1.6% | 2.7% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 28 years · Updated daily
Consensus-Based Analysis Tools
Full Stock Analysis
Deep dive into CTSH consensus models and risk factors.
View Analysis
Intrinsic Valuation
DCF models, multiple analysis, and analyst estimates.
Check Valuation
Historical Returns
10-year return with dividends reinvested.
Calculate
DCA Calculator
See how regular investing compounds over time.
Run Numbers
Peer Comparison
Compare growth, multiples, and margins vs sector.
Compare
CTSH — Frequently Asked Questions
Quick answers to the most common questions about buying CTSH stock.
What is Cognizant Technology Solutions Corporation's P/E ratio?
Cognizant Technology Solutions Corporation's current P/E ratio is 9.6x. The historical average is 31.8x.
What is Cognizant Technology Solutions Corporation's EV/EBITDA?
Cognizant Technology Solutions Corporation's current EV/EBITDA is 5.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 19.9x.
What is Cognizant Technology Solutions Corporation's ROE?
Cognizant Technology Solutions Corporation's return on equity (ROE) is 15.2%. The historical average is 21.9%.
Is CTSH stock overvalued?
Based on historical data, Cognizant Technology Solutions Corporation is trading at a P/E of 9.6x. Compare with industry peers and growth rates for a complete picture.
What is Cognizant Technology Solutions Corporation's dividend yield?
Cognizant Technology Solutions Corporation's current dividend yield is 2.90% with a payout ratio of 27.4%.
What are Cognizant Technology Solutions Corporation's profit margins?
Cognizant Technology Solutions Corporation has 33.7% gross margin and 16.7% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Cognizant Technology Solutions Corporation have?
Cognizant Technology Solutions Corporation's Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.