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What is Cognizant Technology Solutions EV-to-EBIT?
Cognizant Technology SolutionsCTSH -2.26%82 EV-to-EBIT is 5.76 as of Jul. 21, 2026, which is 55% below its 10-year median of 12.72. GuruFocus rates CTSH with a GF Score™ of 82/100 and a GF Value™ of $84.22 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,770 Software companies, Cognizant Technology Solutions ranks better than 81.41% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Cognizant Technology Solutions's Enterprise Value for the quarter that ended in Mar. 2026 was $28,655 Mil.
Cognizant Technology Solutions's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $3,506 Mil.
* 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 EV-to-EBIT Related Terms
Cognizant Technology Solutions EV-to-EBIT 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.
For the Information Technology Services subindustry, Cognizant Technology Solutions's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Software Industry
For the Software industry and Technology sector, Cognizant Technology Solutions's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Cognizant Technology Solutions's EV-to-EBIT falls into.
Cognizant Technology Solutions's current Enterprise Value is $20,212 Mil.
Cognizant Technology Solutions's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $3,506 Mil.
* 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 (CTSH) has a EV-to-EBIT of 5.76 as of Jul. 21, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Cognizant Technology Solutions and its competitors. This is 55% below median its historical median of 12.72. Over the past decade, Cognizant Technology Solutions' EV-to-EBIT has ranged from 5.32 to 20.23. According to the industry distribution chart, Cognizant Technology Solutions ranks #329 out of 1770 companies in the Software industry, placing it in the top 18.6%.
Is Cognizant Technology Solutions' EV-to-EBIT too high?
Cognizant Technology Solutions' current EV-to-EBIT of 5.76 is 55% below median its 10-year median of 12.72. Over the past 10 years, this metric has ranged from a low of 5.32 to a high of 20.23. The Software industry median EV-to-EBIT is 14.23. Cognizant Technology Solutions' value of 5.76 is 59.5% below this industry median. Based on the distribution chart, Cognizant Technology Solutions ranks #329 out of 1770 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 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cognizant Technology Solutions' EV-to-EBIT compare to FIS and CDW?
According to the Software industry distribution chart, Cognizant Technology Solutions ranks #329 out of 1770 companies for EV-to-EBIT. This places Cognizant Technology Solutions in the top 19% of its industry — outperforming the majority of peers. The industry median EV-to-EBIT is 14.23. Cognizant Technology Solutions' value of 5.76 is 59.5% below this benchmark. Historically, Cognizant Technology Solutions' own EV-to-EBIT has ranged from 5.32 to 20.23 over the past decade. While the company's 10-year median is 12.72 vs. the industry median of 14.23, Cognizant Technology Solutions has consistently been below 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 EV-to-EBIT for a Software company?
The median EV-to-EBIT among Software companies is 14.23, based on 1,770 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cognizant Technology Solutions's current EV-to-EBIT of 5.76 is 59.5% below 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Cognizant Technology Solutions and its competitors. For the Software industry, the median EV-to-EBIT is 14.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cognizant Technology Solutions's current EV-to-EBIT is 5.76, which is 55% below median its own 10-year median of 12.72. 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 (CTSH) is currently considered Significantly Undervalued. The stock's GF Value™ is $84.22, compared to a current price of $43.63 — trading 48.2% below its estimated fair value. The current EV-to-EBIT is 5.76, which is 55% below median its 10-year median of 12.72 and 59.5% below the Software industry median of 14.23. Cognizant Technology Solutions' overall GF Score™ is 82/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Cognizant Technology Solutions (CTSH), the current EV-to-EBIT is 5.76 as of Jul. 21, 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 (CTSH) Overvalued in 2026?
Based on GuruFocus' analysis, Cognizant Technology Solutions stock appears to be undervalued.
The current stock price of $43.63 is trading 48.2% below its estimated GF Value™ of $84.22.
GuruFocus considers Cognizant Technology Solutions to be Significantly Undervalued.
Key valuation signals for CTSH:
EV-to-EBIT: 5.76 (55% below median its 10-year median of 12.72)
GF Value™: $84.22 vs. price of $43.63 (48.2% below fair value)
Industry Position: 59.5% below the Software median (#329 of 1770)
No single metric tells the full story. See the 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.
82GF Score
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