Cognizant Technology Solutions (MEX:CTSH) Effective Interest Rate on Debt %: 2.50% (As of Mar. 2026)


MEX:CTSH Cognizant Technology Solutions Corp MEX:CTSH
69 GF Score
Price MXN760.00
GF Value MXN1,472.73
Valuation Significantly Undervalued
! 1 Warning Sign
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What is Cognizant Technology Solutions Effective Interest Rate on Debt %?

Cognizant Technology Solutions MEX:CTSH 69 Effective Interest Rate on Debt % is 2.50% as of Mar. 2026. GuruFocus rates MEX:CTSH with a GF Score™ of 69/100 and a GF Value™ of MXN1,472.73 (Significantly Undervalued). The stock has 1 warning sign investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Cognizant Technology Solutions's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was MXN505 Mil. Cognizant Technology Solutions's average total debt for the quarter that ended in Mar. 2026 was MXN20,217 Mil. Therefore, Cognizant Technology Solutions's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 2.50%.


Cognizant Technology Solutions  (MEX:CTSH) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Cognizant Technology Solutions Effective Interest Rate on Debt % Related Terms


Cognizant Technology Solutions Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Cognizant Technology Solutions's Effective Interest Rate on Debt % 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.

Cognizant Technology Solutions Effective Interest Rate on Debt % Chart

Cognizant Technology Solutions Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.54 1.17 2.67 4.23 2.58

Cognizant Technology Solutions Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.57 2.93 2.69 2.73 2.50

MEX:CTSH vs FIS, CDW, BR: Effective Interest Rate on Debt % Comparison

For the Information Technology Services subindustry, Cognizant Technology Solutions's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % vs Software Industry

For the Software industry and Technology sector, Cognizant Technology Solutions's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Cognizant Technology Solutions's Effective Interest Rate on Debt % falls into.


MEX:CTSH
69GF Score
Cognizant Technology Solutions Corp MEX:CTSH
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Cognizant Technology Solutions Effective Interest Rate on Debt % Calculation

Cognizant Technology Solutions's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2024 )+Total Debt  (A: Dec. 2025 ))/ count )
=-1  *  -666.211/( (30866.435+20742.566)/ 2 )
=-1  *  -666.211/25804.5005
=2.58 %

where

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=27008.131 + 3858.304
=30866.435

Total Debt  (A: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=17393.506 + 3349.06
=20742.566

Cognizant Technology Solutions's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -504.916/( (20742.566+19691.708)/ 2 )
=-1  *  -504.916/20217.137
=2.50 %

where

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=17393.506 + 3349.06
=20742.566

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=16572.051 + 3119.657
=19691.708

* 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.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 2.50% mean?
Cognizant Technology Solutions (MEX:CTSH) has a Effective Interest Rate on Debt % of 2.50% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Cognizant Technology Solutions and its competitors.
Is Cognizant Technology Solutions' Effective Interest Rate on Debt % too high?
Cognizant Technology Solutions' current Effective Interest Rate on Debt % is 2.50%. Overall, Cognizant Technology Solutions has a GF Score™ of 69/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cognizant Technology Solutions' Effective Interest Rate on Debt % compare to FIS and CDW?
Cognizant Technology Solutions' Effective Interest Rate on Debt % of 2.50% can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Software company?
A good Effective Interest Rate on Debt % depends on the Software industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Cognizant Technology Solutions and its competitors. Cognizant Technology Solutions's current Effective Interest Rate on Debt % is 2.50%. 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 MXN1,472.73, compared to a current price of MXN760.00 — trading 48.4% below its estimated fair value. The current Effective Interest Rate on Debt % is 2.50%. Cognizant Technology Solutions' overall GF Score™ is 69/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Cognizant Technology Solutions (MEX:CTSH), the current Effective Interest Rate on Debt % is 2.50% 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 MXN760.00 is trading 48.4% below its estimated GF Value™ of MXN1,472.73. GuruFocus considers Cognizant Technology Solutions to be Significantly Undervalued.

Key valuation signals for MEX:CTSH:

  • Effective Interest Rate on Debt %: 2.50%
  • GF Value™: MXN1,472.73 vs. price of MXN760.00 (48.4% below fair value)
  • GF Score™: 69/100 with 1 warning sign

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

Address 300 Frank West Burr Boulevard, Suite 36, 6th Floor, Teaneck, NJ, USA, 07666
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.
69GF Score

Get the complete analysis for MEX:CTSH

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN760.00
Price
MXN1,472.73
GF Value