EBITDA Margin % is the ratio of EBITDA divided by net sales or Revenue. It is an performance metric measuring company's operating profitability. EBITDA Margin takes depreciation and amortization, interest expense and tax into account, which makes it easy to compare the relative profitability of companies of different sizes in the same industry.
Cognizant Technology Solutions EBITDA Margin % Related Terms
Cognizant Technology Solutions EBITDA Margin % Historical Data
* 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.
MEX:CTSH vs FISV, FIS, BR: EBITDA Margin % Comparison
For the Information Technology Services subindustry, Cognizant Technology Solutions's EBITDA Margin %, along with its competitors' market caps and EBITDA Margin % 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 EBITDA Margin % vs Software Industry
For the Software industry and Technology sector, Cognizant Technology Solutions's EBITDA Margin % distribution charts can be found below:
* The bar in red indicates where Cognizant Technology Solutions's EBITDA Margin % falls into.
* 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.
Cognizant Technology Solutions (MEX:CTSH) has a EBITDA Margin % of 18.75% as of Mar. 2026. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Cognizant Technology Solutions and its competitors. This is near median its historical median of 18.50. Over the past decade, Cognizant Technology Solutions' EBITDA Margin % has ranged from 16.09 to 21.07. According to the industry distribution chart, Cognizant Technology Solutions ranks #684 out of 2818 companies in the Software industry, placing it in the top 24.3%.
Is Cognizant Technology Solutions' EBITDA Margin % too high?
Cognizant Technology Solutions' current EBITDA Margin % of 18.75% is near median its 10-year median of 18.50. Over the past 10 years, this metric has ranged from a low of 16.09 to a high of 21.07. The Software industry median EBITDA Margin % is 8.07. Cognizant Technology Solutions' value of 18.75% is 132.3% above this industry median. Based on the distribution chart, Cognizant Technology Solutions ranks #684 out of 2818 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Cognizant Technology Solutions has a GF Score™ of 66/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cognizant Technology Solutions' EBITDA Margin % compare to FISV and FIS?
According to the Software industry distribution chart, Cognizant Technology Solutions ranks #684 out of 2818 companies for EBITDA Margin %. This places Cognizant Technology Solutions in the top 24% of its industry — outperforming the majority of peers. The industry median EBITDA Margin % is 8.07. Cognizant Technology Solutions' value of 18.75% is 132.3% above this benchmark. Historically, Cognizant Technology Solutions' own EBITDA Margin % has ranged from 16.09 to 21.07 over the past decade. While the company's 10-year median is 18.50 vs. the industry median of 8.07, Cognizant Technology Solutions has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBITDA Margin % for a Software company?
The median EBITDA Margin % among Software companies is 8.07, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a EBITDA Margin % significantly above this median, while those in the bottom quartile fall well below. However, EBITDA Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cognizant Technology Solutions's current EBITDA Margin % of 18.75% is 132.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBITDA Margin % mean?
A high EBITDA Margin % can signal that a stock is expensive relative to its fundamentals. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Cognizant Technology Solutions and its competitors. For the Software industry, the median EBITDA Margin % is 8.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cognizant Technology Solutions's current EBITDA Margin % is 18.75%, which is near median its own 10-year median of 18.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cognizant Technology Solutions stock overvalued right now?
Based on GuruFocus' analysis, Cognizant Technology Solutions (MEX:CTSH) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN1,477.03, compared to a current price of MXN722.03 — trading 51.1% below its estimated fair value. The current EBITDA Margin % is 18.75%, which is near median its 10-year median of 18.50 and 132.3% above the Software industry median of 8.07. Cognizant Technology Solutions' overall GF Score™ is 66/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBITDA Margin % calculated?
EBITDA Margin % is calculated from a company's financial statements. For Cognizant Technology Solutions (MEX:CTSH), the current EBITDA Margin % is 18.75% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cognizant Technology Solutions (MEX:CTSH) Overvalued in 2026?
Based on GuruFocus' analysis, Cognizant Technology Solutions stock appears to be undervalued.
The current stock price of MXN722.03 is trading 51.1% below its estimated GF Value™ of MXN1,477.03.
GuruFocus considers Cognizant Technology Solutions to be Significantly Undervalued.
Key valuation signals for MEX:CTSH:
EBITDA Margin %: 18.75% (near median its 10-year median of 18.50)
GF Value™: MXN1,477.03 vs. price of MXN722.03 (51.1% below fair value)
Industry Position: 132.3% above the Software median (#684 of 2818)
No single metric tells the full story. See the MEX:CTSH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cognizant Technology Solutions Business Description
Cognizant Technology Solutions is a multinational IT services provider that offers a range of consulting and business process outsourcing services. Originally founded in India, the company is headquartered in the US and serves enterprise customers spanning the financial services, healthcare, and resources industries. With most of its workforce located in India, Cognizant leverages a global delivery model that helps clients outsource their IT needs to offshore labor.
66GF Score
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