The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. As of today (2024-04-18), Cognizant Technology Solutions's share price is $67.135. Cognizant Technology Solutions's Book Value per Share for the quarter that ended in Dec. 2023 was $26.56. Hence, Cognizant Technology Solutions's PB Ratio of today is 2.53.
Good Sign:
Cognizant Technology Solutions Corp stock PB Ratio (=2.54) is close to 1-year low of 2.38
The historical rank and industry rank for Cognizant Technology Solutions's PB Ratio or its related term are showing as below:
CTSH'
s PB Ratio Range Over the Past 10 Years
Min: 2.19 Med: 3.66 Max: 5.31
Current: 2.53
During the past 13 years, Cognizant Technology Solutions's highest PB Ratio was 5.31. The lowest was 2.19. And the median was 3.66.
CTSH's PB Ratio is ranked better than 50.21% of 2577
companies
in the Software industry
Industry Median: 2.56
vs CTSH: 2.53
During the past 12 months, Cognizant Technology Solutions's average Book Value Per Share Growth Rate was 9.80% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was 9.10% per year.
During the past 5 years, the average Book Value Per Share Growth Rate was 6.30% per year.
During the past 10 years, the average Book Value Per Share Growth Rate was 8.60% per year.
During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Cognizant Technology Solutions was 58.30% per year. The lowest was 4.10% per year. And the median was 24.60% per year.
Back to Basics: PB Ratio
Cognizant Technology Solutions PB Ratio Historical Data
The historical data trend for Cognizant Technology Solutions's PB Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
Cognizant Technology Solutions Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
PB Ratio
3.08
4.01
3.88
2.36
2.84
Cognizant Technology Solutions Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
PB Ratio
2.36
2.44
2.52
2.63
2.84
Competitive Comparison
For the Information Technology Services subindustry, Cognizant Technology Solutions's PB Ratio, along with its competitors' market caps and PB Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cognizant Technology Solutions PB Ratio Distribution
For the Software industry and Technology sector, Cognizant Technology Solutions's PB Ratio distribution charts can be found below:
* The bar in red indicates where Cognizant Technology Solutions's PB Ratio falls into.
Cognizant Technology Solutions PB Ratio Calculation
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.
Cognizant Technology Solutions's PB Ratio for today is calculated as follows:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
It can also be calculated from the numbers for the whole company:
A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.
Cognizant Technology Solutions (NAS:CTSH) PB Ratio Explanation
The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.
Be Aware
Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.
Cognizant Technology Solutions PB Ratio Related Terms
Thank you for viewing the detailed overview of Cognizant Technology Solutions's PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Cognizant Technology Solutions (Cognizant Technology Solutions) Business Description
Cognizant is a global IT services provider, offering consulting and outsourcing services to some of the world's largest enterprises spanning the financial services, media and communications, healthcare, natural resources, and consumer products industries. Cognizant employs nearly 300,000 people globally, roughly 70% of whom are in India, although the company's headquarters are in Teaneck, New Jersey.
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