Latest Ratios: P/E Ratio 9.7x · EV/EBITDA 5.0x · ROE 15.2%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $20.8B | $40.0B | $38.2B | $38.1B | $29.7B | $46.8B | $44.3B | $34.7B | $37.1B | $42.3B | $34.2B |
| Enterprise Value | $20.5B | $39.7B | $37.5B | $36.8B | $29.0B | $46.7B | $43.4B | $33.8B | $36.7B | $41.2B | $33.0B |
| P/E Ratio → | 9.66 | 18.24 | 17.05 | 17.94 | 12.97 | 21.91 | 31.89 | 18.85 | 17.63 | 28.07 | 21.97 |
| P/S Ratio | 0.99 | 1.90 | 1.94 | 1.97 | 1.53 | 2.53 | 2.66 | 2.07 | 2.30 | 2.85 | 2.53 |
| P/B Ratio | 1.41 | 2.66 | 2.65 | 2.88 | 2.41 | 3.91 | 4.09 | 3.15 | 3.25 | 3.96 | 3.19 |
| P/FCF | 8.02 | 15.42 | 20.92 | 18.95 | 13.27 | 21.14 | 15.28 | 16.48 | 16.74 | 19.90 | 25.87 |
| P/OCF | 7.22 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 5.02 | 9.73 | 10.92 | 11.36 | 8.21 | 13.73 | 16.24 | 11.34 | 11.11 | 14.09 | 12.38 |
| EV / EBIT | 5.81 | 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 |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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)
Short-term solvency ratios and asset-utilisation metrics
| 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 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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% | — |
| 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 | 6.6% | 3.4% | 1.6% | 2.8% | 4.8% | 1.6% | 3.7% | 6.5% | 3.4% | 4.5% | 1.5% |
| Total Shareholder Yield | 9.5% | 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 |
Discretionary IT spending volatility
According to current market data, CTSH trades at a forward P/E of 7.00, which represents a significant discount to peers like Infosys and Wipro, suggesting that investors remain skeptical regarding the company's ability to accelerate revenue growth amidst ongoing shifts in the global IT services landscape.
The low valuation multiple appears to reflect a market consensus that Cognizant's growth profile is more mature and cyclical than its Indian-heritage peers. While the PEG ratio of 0.73 suggests potential undervaluation, this may be offset by the persistent volatility in discretionary spending within the financial services segment.
Based on reported financial statements, CTSH has maintained a relatively flat ROIC trend, hovering around 4.2% to 4.6% over the last ten quarters, which significantly trails the double-digit returns generated by industry leaders like Accenture and Infosys, indicating a potential struggle to compound capital effectively.
The consistent, low-single-digit ROIC suggests that the company's heavy investment in service delivery infrastructure and past acquisitions has yet to yield superior economic returns. Investors should monitor whether the current pivot toward AI-driven delivery can improve these returns or if the capital-intensive nature of the business model will continue to suppress efficiency.
As reported in recent filings, CTSH's DSO has remained elevated near 75 days, highlighting a persistent challenge in accelerating cash collection cycles compared to more efficient peers, which directly impacts the company's ability to optimize its working capital and maintain consistent free cash flow generation.
The stability of the DSO metric suggests that the company's billing and collection processes are deeply entrenched and potentially constrained by the long-term nature of its managed services contracts. This lack of improvement in the cash conversion cycle may limit the company's internal funding capacity for strategic growth initiatives.
According to the most recent balance sheet data, CTSH maintains a current ratio of 2.23, providing a robust liquidity cushion that appears more than sufficient to navigate short-term operational volatility and potential downturns in client demand within the North American market.
This liquidity position is supported by a very conservative debt-to-equity ratio of 0.07, which grants the company significant financial flexibility. While this conservative stance protects against insolvency risk, it also raises questions about whether management is under-utilizing the balance sheet to drive inorganic growth or shareholder returns.
As evidenced by the company's unique mix of platform-based healthcare revenue and labor-intensive IT services, the P/E ratio is frequently misapplied to CTSH, as it fails to account for the significant non-cash charges and restructuring costs that often distort GAAP earnings and mask underlying operational performance.
Analysts should prioritize EV/EBITDA or free cash flow yield over P/E to better capture the true cash-generating capacity of the business, especially given the company's history of frequent restructuring. Relying solely on P/E risks ignoring the potential value embedded in the TriZetto platform, which operates with different margin dynamics than the broader services business.
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying CTSH stock.
Cognizant Technology Solutions Corporation's current P/E ratio is 9.7x. The historical average is 31.8x.
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.
Cognizant Technology Solutions Corporation's return on equity (ROE) is 15.2%. The historical average is 21.9%.
Based on historical data, Cognizant Technology Solutions Corporation is trading at a P/E of 9.7x. Compare with industry peers and growth rates for a complete picture.
Cognizant Technology Solutions Corporation's current dividend yield is 2.88% with a payout ratio of 27.4%.
Cognizant Technology Solutions Corporation has 33.7% gross margin and 16.7% operating margin. Operating margin between 10-20% is typical for established companies.
Cognizant Technology Solutions Corporation's Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.