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What is Cognizant Technology Solutions EV-to-EBITDA?
Cognizant Technology SolutionsCTSH -2.26%82 EV-to-EBITDA is 4.98 as of Jul. 21, 2026, which is 54% below its 10-year median of 10.83. 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 1,957 Software companies, Cognizant Technology Solutions ranks better than 78.9% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Cognizant Technology Solutions's enterprise value is $20,212 Mil.
Cognizant Technology Solutions's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 was $4,061 Mil. Therefore, Cognizant Technology Solutions's EV-to-EBITDA for today is 4.98.
The historical rank and industry rank for Cognizant Technology Solutions's EV-to-EBITDA or its related term are showing as below:
CTSH'
s EV-to-EBITDA Range Over the Past 10 Years
Min: 4.6 Med: 10.83 Max: 16
Current: 4.98
During the past 13 years, the highest EV-to-EBITDA of Cognizant Technology Solutions was 16.00. The lowest was 4.60. And the median was 10.83.
CTSH's EV-to-EBITDA is ranked better than 78.9% of 1957
companies
in the Software industry
Industry Median: 10.46
vs CTSH: 4.98
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Cognizant Technology Solutions's PE Ratio (TTM) for today is calculated as:
Cognizant Technology Solutions's share price for today is $43.63.
Cognizant Technology Solutions's Earnings per Share (Diluted) 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 $4.600.
* 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.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
* 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-EBITDA, along with its competitors' market caps and EV-to-EBITDA 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-EBITDA vs Software Industry
For the Software industry and Technology sector, Cognizant Technology Solutions's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Cognizant Technology Solutions's EV-to-EBITDA falls into.
Cognizant Technology Solutions's current Enterprise Value is $20,212 Mil.
Cognizant Technology Solutions's EBITDA 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 $4,061 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-EBITDA of 4.98 as of Jul. 21, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Cognizant Technology Solutions. This is 54% below median its historical median of 10.83. Over the past decade, Cognizant Technology Solutions' EV-to-EBITDA has ranged from 4.60 to 16.00. According to the industry distribution chart, Cognizant Technology Solutions ranks #413 out of 1957 companies in the Software industry, placing it in the top 21.1%.
Is Cognizant Technology Solutions' EV-to-EBITDA too high?
Cognizant Technology Solutions' current EV-to-EBITDA of 4.98 is 54% below median its 10-year median of 10.83. Over the past 10 years, this metric has ranged from a low of 4.60 to a high of 16.00. The Software industry median EV-to-EBITDA is 10.46. Cognizant Technology Solutions' value of 4.98 is 52.4% below this industry median. Based on the distribution chart, Cognizant Technology Solutions ranks #413 out of 1957 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-EBITDA compare to FIS and CDW?
According to the Software industry distribution chart, Cognizant Technology Solutions ranks #413 out of 1957 companies for EV-to-EBITDA. This places Cognizant Technology Solutions in the top 21% of its industry — outperforming the majority of peers. The industry median EV-to-EBITDA is 10.46. Cognizant Technology Solutions' value of 4.98 is 52.4% below this benchmark. Historically, Cognizant Technology Solutions' own EV-to-EBITDA has ranged from 4.60 to 16.00 over the past decade. While the company's 10-year median is 10.83 vs. the industry median of 10.46, 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-EBITDA for a Software company?
The median EV-to-EBITDA among Software companies is 10.46, based on 1,957 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cognizant Technology Solutions's current EV-to-EBITDA of 4.98 is 52.4% 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-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Cognizant Technology Solutions. For the Software industry, the median EV-to-EBITDA is 10.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cognizant Technology Solutions's current EV-to-EBITDA is 4.98, which is 54% below median its own 10-year median of 10.83. 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-EBITDA is 4.98, which is 54% below median its 10-year median of 10.83 and 52.4% below the Software industry median of 10.46. 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-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Cognizant Technology Solutions (CTSH), the current EV-to-EBITDA is 4.98 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-EBITDA: 4.98 (54% below median its 10-year median of 10.83)
GF Value™: $84.22 vs. price of $43.63 (48.2% below fair value)
Industry Position: 52.4% below the Software median (#413 of 1957)
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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