Cognizant (CTSH) fundamentals: P/E, valuation, undervalued?

Cognizant · Information Technology · ref. ETF XLK · price $63.76
Logo CognizantSee the full Cognizant (CTSH) profile
In short — Cognizant trades at 13.3× earnings (P/E), 10.1× 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
$63.76-11.1% over range
Aug 28, 25low $38.73 · high $86.7Aug 27, 26
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Hold
38% recommend buying · 13 analysts
Valuation : Low P/E — P/E 13 (below the ~20 market average)

Valuation

13.3
P/E (price/earnings)
10.1
Forward P/E
3.50
PEG
2.0
Price/book (P/B)
$28.7B
Market cap
4.79
EPS

Profitability & growth

10.3 %
Net margin
+5 %
Revenue growth
+4 %
Earnings growth
$2.1B
Total debt

Cognizant income statement

Fiscal yearRevenueNet incomeMargin
2022$19.4B$2.3B11.8 %
2023$19.4B$2.1B11.0 %
2024$19.7B$2.2B11.3 %
2025$21.1B$2.2B10.6 %
⚠️ 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 13.3 (forward 10.1). 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 4.79). 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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