Cognizant Technology SolutionsMEX:CTSH 66 Interest Coverage is 120.43 as of Mar. 2026, which is 16% above its 10-year median of 103.57. GuruFocus rates MEX:CTSH with a GF Score™ of 66/100 and a GF Value™ of MXN1,545.49 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,707 Software companies, Cognizant Technology Solutions ranks better than 68.54% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Cognizant Technology Solutions's
Operating Income
for the
three
months ended in Mar. 2026 was MXN15,202 Mil. Cognizant Technology Solutions's Interest Expense for the
three
months ended in Mar. 2026 was MXN-126 Mil.
Cognizant Technology Solutions's interest coverage for the quarter that ended in Mar. 2026 was 120.43.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Cognizant Technology Solutions's Interest Coverage or its related term are showing as below:
MEX:CTSH'
s Interest Coverage Range Over the Past 10 Years
Min: 56.04 Med: 103.57 Max: 314
Current: 105.59
MEX:CTSH's Interest Coverage is ranked better than 68.54% of 1707
companies
in the Software industry
Industry Median: 24.65
vs MEX:CTSH: 105.59
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Cognizant Technology Solutions Interest Coverage Related Terms
Cognizant Technology Solutions Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:CTSH vs FISV, FIS, BR: Interest Coverage Comparison
For the Information Technology Services subindustry, Cognizant Technology Solutions's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Software Industry
For the Software industry and Technology sector, Cognizant Technology Solutions's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Cognizant Technology Solutions's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 Interest Coverage of 120.43 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Cognizant Technology Solutions and its competitors. This is 16% above median its historical median of 103.57. Over the past decade, Cognizant Technology Solutions' Interest Coverage has ranged from 56.04 to 314.00. According to the industry distribution chart, Cognizant Technology Solutions ranks #537 out of 1707 companies in the Software industry, placing it in the top 31.5%.
Is Cognizant Technology Solutions' Interest Coverage too high?
Cognizant Technology Solutions' current Interest Coverage of 120.43 is 16% above median its 10-year median of 103.57. Over the past 10 years, this metric has ranged from a low of 56.04 to a high of 314.00. The Software industry median Interest Coverage is 24.65. Cognizant Technology Solutions' value of 120.43 is 388.6% above this industry median. Based on the distribution chart, Cognizant Technology Solutions ranks #537 out of 1707 companies in the Software industry, which is above the industry midpoint. 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' Interest Coverage compare to FISV and FIS?
According to the Software industry distribution chart, Cognizant Technology Solutions ranks #537 out of 1707 companies for Interest Coverage. This puts Cognizant Technology Solutions in the upper half of its industry. The industry median Interest Coverage is 24.65. Cognizant Technology Solutions' value of 120.43 is 388.6% above this benchmark. Historically, Cognizant Technology Solutions' own Interest Coverage has ranged from 56.04 to 314.00 over the past decade. While the company's 10-year median is 103.57 vs. the industry median of 24.65, 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 Interest Coverage for a Software company?
The median Interest Coverage among Software companies is 24.65, based on 1,707 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cognizant Technology Solutions's current Interest Coverage of 120.43 is 388.6% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Cognizant Technology Solutions and its competitors. For the Software industry, the median Interest Coverage is 24.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cognizant Technology Solutions's current Interest Coverage is 120.43, which is 16% above median its own 10-year median of 103.57. 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 MXN1,545.49, compared to a current price of MXN722.03 — trading 53.3% below its estimated fair value. The current Interest Coverage is 120.43, which is 16% above median its 10-year median of 103.57 and 388.6% above the Software industry median of 24.65. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Cognizant Technology Solutions (MEX:CTSH), the current Interest Coverage is 120.43 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 53.3% below its estimated GF Value™ of MXN1,545.49.
GuruFocus considers Cognizant Technology Solutions to be Significantly Undervalued.
Key valuation signals for MEX:CTSH:
Interest Coverage: 120.43 (16% above median its 10-year median of 103.57)
GF Value™: MXN1,545.49 vs. price of MXN722.03 (53.3% below fair value)
Industry Position: 388.6% above the Software median (#537 of 1707)
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
Get the complete analysis for MEX:CTSH
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:CTSH has been successfully added to your 
