Cognizant Technology Solutions Corporation (CTSH) Financial Ratios
28 years of historical data (1998–2025) · Technology · Information Technology Services
EV/EBITDA
↓
5.95
↓-45% vs avg
5yr avg: 10.79
30Y Low7.9·High52.0
P/FCF
↓
9.48
↓-47% vs avg
5yr avg: 17.94
30Y Low13.3·High83.9
P/B Ratio
↓
1.67
↓-43% 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 11.4x earnings, 35% 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 27.7x, the stock trades at a discount of 59%. On a free-cash-flow basis, the stock trades at 9.5x P/FCF, 47% 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 | $24.6B | $40.0B | $38.2B | $38.1B | $29.7B | $46.8B | $44.3B | $34.7B | $37.1B | $42.3B | $34.2B |
| Enterprise Value | $24.3B | $39.7B | $37.5B | $36.8B | $29.0B | $46.7B | $43.4B | $33.8B | $36.7B | $41.2B | $33.0B |
| P/E Ratio → | 11.42 | 18.24 | 17.05 | 17.94 | 12.97 | 21.91 | 31.89 | 18.85 | 17.63 | 28.07 | 21.97 |
| P/S Ratio | 1.17 | 1.90 | 1.94 | 1.97 | 1.53 | 2.53 | 2.66 | 2.07 | 2.30 | 2.85 | 2.53 |
| P/B Ratio | 1.67 | 2.66 | 2.65 | 2.88 | 2.41 | 3.91 | 4.09 | 3.15 | 3.25 | 3.96 | 3.19 |
| P/FCF | 9.48 | 15.42 | 20.92 | 18.95 | 13.27 | 21.14 | 15.28 | 16.48 | 16.74 | 19.90 | 25.87 |
| P/OCF | 8.54 | 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 6.0x EBITDA, 45% below its 5-year average of 10.8x. The Technology sector median is 17.5x, placing the stock at a 66% 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 | 5.95 | 9.73 | 10.92 | 11.36 | 8.21 | 13.73 | 16.24 | 11.34 | 11.11 | 14.09 | 12.38 |
| EV / EBIT | 6.88 | 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 8.0% to shareholders annually — split between a 2.4% dividend yield and 5.6% buyback yield. The payout ratio of 27.4% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 8.8% (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 | 2.4% | 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 | 8.8% | 5.5% | 5.9% | 5.6% | 7.7% | 4.6% | 3.1% | 5.3% | 5.7% | 3.6% | 4.6% |
| FCF Yield | 10.5% | 6.5% | 4.8% | 5.3% | 7.5% | 4.7% | 6.5% | 6.1% | 6.0% | 5.0% | 3.9% |
| Buyback Yield | 5.6% | 3.4% | 1.6% | 2.8% | 4.8% | 1.6% | 3.7% | 6.5% | 3.4% | 4.5% | 1.5% |
| Total Shareholder Yield | 8.0% | 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 | $25B | 11.4 | 6.0 | 9.5 | 33.7% | 16.7% | 15.2% | 18.7% | 0.4 |
 ACN | $112B | 14.8 | 8.6 | 10.3 | 31.9% | 14.7% | 25.0% | 26.8% | 0.6 |
 INFY | $51B | 16.6 | 10.6 | 12.5 | 30.5% | 21.1% | 28.9% | 31.8% | 0.2 |
 WIT | $21B | 15.0 | 11.2 | 12.7 | 30.7% | 17.0% | 16.8% | 13.4% | 1.1 |
 EPAM | $6B | 15.5 | 6.7 | 9.0 | 26.5% | 9.6% | 10.3% | 15.5% | 0.2 |
 GLOB | $2B | 11.0 | 5.3 | 8.2 | 35.7% | 9.3% | 8.7% | 8.3% | 1.1 |
 KFRC | $790M | 22.1 | 15.4 | 16.9 | 26.8% | 3.8% | 24.9% | 19.1% | 1.3 |
 IBM | $217B | 20.7 | 17.6 | 18.7 | 59.5% | 15.3% | 35.2% | 9.8% | 4.4 |
 DXC | $2B | 5.7 | 2.4 | 2.5 | 24.1% | 5.4% | 11.9% | 8.1% | 2.3 |
 LDOS | $17B | 11.8 | 8.8 | 10.2 | 17.7% | 12.3% | 30.9% | 17.1% | 2.5 |
 SAIC | $4B | 12.2 | 6.4 | 7.3 | 12.0% | 7.1% | 23.3% | 14.2% | 0.3 |
| Technology Median | — | 27.7 | 17.5 | 19.2 | 48.5% | -0.6% | 2.4% | 2.9% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonCTSH — 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 11.4x. The historical average is 31.8x.
What is Cognizant Technology Solutions Corporation's EV/EBITDA?
Cognizant Technology Solutions Corporation's current EV/EBITDA is 6.0x. 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 11.4x. 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 2.44% 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.