Cognizant (CTSH) fundamentals: P/E, valuation, undervalued?
Cognizant · Information Technology · ref. ETF XLK · price $61.33
In short — Cognizant trades at 13.2× earnings (P/E), 9.7× forward, with a net margin of 10.3 % and revenue growth of +5 %. Read: Low P/E (P/E 13 (below the ~20 market average)).
Is Cognizant stock cheap or undervalued? A good time to buy? Here are its fundamentals — P/E, PEG, margin and income statement — to judge its valuation.
📈 1-year price
$61.33-8.8% over range
Oct 14, 25low $38.73 · high $86.7Oct 13, 26
📏 Click 2 points (left → right) to measure the change · click again to clear.
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Hold
46% recommend buying · 13 analysts
Valuation : Low P/E — P/E 13 (below the ~20 market average)
Valuation
13.2
P/E (price/earnings)
9.7
Forward P/E
3.47
PEG
1.9
Price/book (P/B)
$29.0B
Market cap
4.65
EPS
Profitability & growth
10.3 %
Net margin
+5 %
Revenue growth
+4 %
Earnings growth
$2.1B
Total debt
Cognizant income statement
| Fiscal year | Revenue | Net income | Margin |
|---|---|---|---|
| 2022 | $19.4B | $2.3B | 11.8 % |
| 2023 | $19.4B | $2.1B | 11.0 % |
| 2024 | $19.7B | $2.2B | 11.3 % |
| 2025 | $21.1B | $2.2B | 10.6 % |
⚠️ Indicative financial data (Yahoo Finance), not investment advice. Amounts in $.
Frequently asked questions
What is Cognizant's P/E and is the stock undervalued? What's a good P/E?
Cognizant's P/E is 13.2 (forward 9.7). Below ~15 = fairly cheap, above ~30 = expensive. Our valuation verdict: "Low P/E".
Is Cognizant profitable?
Cognizant has a net margin of 10.3 % (EPS 4.65). The company is profitable.
Is CTSH stock expensive?
Our read: "Low P/E" — P/E 13 (below the ~20 market average). Cross-check with growth and sector.
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