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Cognizant Technology SolutionsCTSH +8.34%82 EV-to-OCF is 9.20 as of Jul. 29, 2026, which is 37% below its 10-year median of 14.52. GuruFocus rates CTSH with a GF Score™ of 82/100 and a GF Value™ of $84.34 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,874 Software companies, Cognizant Technology Solutions ranks worse than 56.37% on this metric.
The historical rank and industry rank for Cognizant Technology Solutions's EV-to-OCF or its related term are showing as below:
CTSH'
s EV-to-OCF Range Over the Past 10 Years
Min: 6.77 Med: 14.52 Max: 20.86
Current: 9.2
During the past 13 years, the highest EV-to-OCF of Cognizant Technology Solutions was 20.86. The lowest was 6.77. And the median was 14.52.
CTSH's EV-to-OCF is ranked worse than 56.37% of 2874
companies
in the Software industry
Industry Median: 6.73
vs CTSH: 9.20
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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 $54.505.
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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Cognizant Technology Solutions EV-to-OCF Related Terms
Cognizant Technology Solutions EV-to-OCF 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-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Software Industry
For the Software industry and Technology sector, Cognizant Technology Solutions's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Cognizant Technology Solutions's EV-to-OCF falls into.
Cognizant Technology Solutions's current Enterprise Value is $25,356 Mil.
Cognizant Technology Solutions's Cash Flow from Operations 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 $2,757 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-OCF of 9.20 as of Jul. 29, 2026. This is 37% below median its historical median of 14.52. Over the past decade, Cognizant Technology Solutions' EV-to-OCF has ranged from 6.77 to 20.86. According to the industry distribution chart, Cognizant Technology Solutions ranks #1620 out of 2874 companies in the Software industry, placing it in the top 56.4%.
Is Cognizant Technology Solutions' EV-to-OCF too high?
Cognizant Technology Solutions' current EV-to-OCF of 9.20 is 37% below median its 10-year median of 14.52. Over the past 10 years, this metric has ranged from a low of 6.77 to a high of 20.86. The Software industry median EV-to-OCF is 6.73. Cognizant Technology Solutions' value of 9.20 is 36.7% above this industry median. Based on the distribution chart, Cognizant Technology Solutions ranks #1620 out of 2874 companies in the Software industry, which is below the industry midpoint. 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-OCF compare to FIS and BR?
According to the Software industry distribution chart, Cognizant Technology Solutions ranks #1620 out of 2874 companies for EV-to-OCF. This places Cognizant Technology Solutions in the lower half of its industry. The industry median EV-to-OCF is 6.73. Cognizant Technology Solutions' value of 9.20 is 36.7% above this benchmark. Historically, Cognizant Technology Solutions' own EV-to-OCF has ranged from 6.77 to 20.86 over the past decade. While the company's 10-year median is 14.52 vs. the industry median of 6.73, 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 EV-to-OCF for a Software company?
The median EV-to-OCF among Software companies is 6.73, based on 2,874 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cognizant Technology Solutions's current EV-to-OCF of 9.20 is 36.7% 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 EV-to-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median EV-to-OCF is 6.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cognizant Technology Solutions's current EV-to-OCF is 9.20, which is 37% below median its own 10-year median of 14.52. 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 $84.34, compared to a current price of $54.51 — trading 35.4% below its estimated fair value. The current EV-to-OCF is 9.20, which is 37% below median its 10-year median of 14.52 and 36.7% above the Software industry median of 6.73. 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-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Cognizant Technology Solutions (CTSH), the current EV-to-OCF is 9.20 as of Jul. 29, 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 $54.51 is trading 35.4% below its estimated GF Value™ of $84.34.
GuruFocus considers Cognizant Technology Solutions to be Significantly Undervalued.
Key valuation signals for CTSH:
EV-to-OCF: 9.20 (37% below median its 10-year median of 14.52)
GF Value™: $84.34 vs. price of $54.51 (35.4% below fair value)
Industry Position: 36.7% above the Software median (#1620 of 2874)
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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