Cognizant Technology Solutions Corp Class A (CTSH) Fair Value & Analysis
Technology · US · Market cap $21.2B · ISIN US1924461023
What is Cognizant Technology Solutions Corp Class A really worth?
Cognizant Technology Solutions Corp Class A
CTSH · US
A strong business, trading 51% below our fair value of $132.01.
Strengths
Risks
For context
Fair value as of: Sep 1, 2026
From 26 valuation models · updated 4 days ago
Share price +15.2% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The rarer combination: high quality (76/100) AND below fair value. That earns a closer look rather than a quick verdict.
- The price is below even our cautious bear case ($85.40). The market is more pessimistic than our downside scenario.
- A fairly wide model range ($85.40 to $165.01) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 1, 2026.
How to read this chart
60‑month range $38.73 – $88.18 · fair‑value band $85.40 – $165.01 · the $64.64 price screens below the $132.01 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 1, 2026.
Analysis
Cognizant Technology Solutions Corp Class A (CTSH) currently trades at $64.64, while our model-based Fair Value estimate is $132.01, implying the stock looks roughly 51.0% undervalued today. The Quality Score stands at 76/100 (high quality), in the Technology sector. Bull case: the DCF Models group reads highest at a median of $143.84 per share, and 19 of the 26 models we run sit above the $64.64 price. Bear case: the Dividend Discount group reads lowest at $20.76, and 7 of the 26 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, Cognizant Technology Solutions Corp Class A generated revenue of $21.4B at a net margin of 10.4%. Revenue grew 5.8% year over year. It earns a return on equity of 14.9%. The balance sheet holds a net cash position of $326M. Fundamentals as of Sep 1, 2026
Our scenario range runs from $85.40 (bear case) to $165.01 (bull case); at $64.64, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 25% below its 52-week high and 43% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at 57% fair-value upside, at 104%, CTSH screens cheaper than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $2.25 per share, which is 1.7 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 26 models by family
Widest divergence: DCF Models ($143.84) versus Dividend Discount ($20.76). Highest evidence: FCF DCF (77).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Sep 1, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 73 · Market factors (momentum, volatility) 45
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services; Health Sciences; Products and Resources; and Communications, Media and Technology.
Full company description
Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services; Health Sciences; Products and Resources; and Communications, Media and Technology. The company provides services including artificial intelligence (AI) and other technology services and solutions, consulting, application development, systems integration, quality engineering and assurance, engineering research and development, application maintenance, infrastructure, security, and business process services and automation. It also offers AI-led automation, which includes advisory, and process and IT automation solutions designed to simplify and accelerate automation adoption; business process outsourcing services, which help deliver business outcomes including revenue growth, increased customer and employee satisfaction, and cost savings; and Cognizant Moment, a digital experience service that uses AI to reimagine customer experiences and engineer strategies aimed at driving growth. In addition, the company develops, licenses, implements, and supports proprietary and third-party software products and platforms; and develops industry-specific products and services. It offers solution to healthcare providers and payers, life sciences companies, banking, capital markets, payments and insurance companies, manufacturers, automakers, retailers, consumer goods, travel and hospitality, communications, media and entertainment, education, information services, and technology companies, as well as businesses providing logistics, energy, and utility services. The company has a strategic partnership with Uniphore Technologies Inc. for the development of AI solutions that combine small language models and AI agents. Cognizant Technology Solutions Corporation was incorporated in 1988 and is headquartered in Teaneck, New Jersey.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Cognizant Technology Solutions Corp Class A reported revenue of $21.1B in FY2025 versus $18.5B in FY2021, a compound +3.3%/yr. Reported net income was $2.2B in FY2025, compounding +1.1%/yr from FY2021.
of which total revenue +5.8 % · buybacks/dilution +2.4 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
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Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Cognizant to Present at Upcoming Investor Conferences
- Cognizant and CrowdStrike Protect Critical Operations Across Converged IT and OT Environments
- Why Is Cognizant (CTSH) Up 18.3% Since Last Earnings Report?
- Is Cognizant (CTSH) Quietly Redefining Its Automation Edge With Kyowa Kirin’s AI R&D Deal?
Peer Group
Information Technology Services · 486 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Information Technology Services median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
Insider activity: 46/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Sep 1, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| International Business Machines Corporation IBM | $235.59 | $175.76 | −25% |
| Accenture plc ACN | $189.61 | $334.27 | +76% |
| Tata Consultancy Services Limited TCS | ₹2,302 | ₹3,473 | +51% |
| Infosys Limited INFY | ₹1,156 | ₹1,958 | +69% |
| HCL Technologies Limited HCLTECH | ₹1,282 | ₹1,722 | +34% |
| Fiserv, Inc FI | C$5.13 | C$8.07 | +57% |
| Wipro Limited WIT | $1.83 | $3.51 | +92% |
| Fidelity National Information Services, Inc FIS | $41.34 | $19.28 | −53% |
| Capgemini SE CAP | €109.45 | €222.79 | +104% |
| CDW Corporation CDW | $153.92 | $179.36 | +17% |
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