Cognizant Technology SolutionsMEX:CTSH 69 PS Ratio is 0.89 as of Jul. 02, 2026, which is 58% below its 10-year median of 2.14. GuruFocus rates MEX:CTSH with a GF Score™ of 69/100 and a GF Value™ of MXN1,475.00 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,776 Software companies, Cognizant Technology Solutions ranks better than 72.26% on this metric.
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Cognizant Technology Solutions's share price is MXN722.03.
Cognizant Technology Solutions's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2026 was MXN808.14. Hence, Cognizant Technology Solutions's PS Ratio for today is 0.89.
Good Sign:
Cognizant Technology Solutions Corp stock PS Ratio (=0.93) is close to 10-year low of 0.91.
The historical rank and industry rank for Cognizant Technology Solutions's PS Ratio or its related term are showing as below:
MEX:CTSH'
s PS Ratio Range Over the Past 10 Years
Min: 0.91 Med: 2.14 Max: 3.4
Current: 0.93
During the past 13 years, Cognizant Technology Solutions's highest PS Ratio was 3.40. The lowest was 0.91. And the median was 2.14.
MEX:CTSH's PS Ratio is ranked better than 72.26% of 2776
companies
in the Software industry
Industry Median: 2.03
vs MEX:CTSH: 0.93
During the past 13 years, Cognizant Technology Solutions's highest 3-Year average Revenue per Share Growth Rate was 51.70% per year. The lowest was 4.20% per year. And the median was 19.30% per year.
Back to Basics: PS Ratio
Cognizant Technology Solutions (MEX:CTSH) PS Ratio Explanation
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
Cognizant Technology Solutions PS Ratio Related Terms
Cognizant Technology Solutions PS Ratio 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 PS Ratio, along with its competitors' market caps and PS Ratio 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 PS Ratio vs Software Industry
For the Software industry and Technology sector, Cognizant Technology Solutions's PS Ratio distribution charts can be found below:
* The bar in red indicates where Cognizant Technology Solutions's PS Ratio falls into.
Cognizant Technology Solutions PS Ratio Calculation
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
Cognizant Technology Solutions's Share Price of today is MXN722.03. Cognizant Technology Solutions's Revenue per Share 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 MXN808.14.
* 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.
It can also be calculated from the numbers for the whole company:
Cognizant Technology Solutions (MEX:CTSH) has a PS Ratio of 0.89 as of Jul. 02, 2026. Price-to-Sales ratio is the ratio of share price to a company's revenue per share. View historical data on Cognizant Technology Solutions and its competitors. This is 58% below median its historical median of 2.14. Over the past decade, Cognizant Technology Solutions' PS Ratio has ranged from 0.91 to 3.40. According to the industry distribution chart, Cognizant Technology Solutions ranks #770 out of 2776 companies in the Software industry, placing it in the top 27.7%.
Is Cognizant Technology Solutions' PS Ratio too high?
Cognizant Technology Solutions' current PS Ratio of 0.89 is 58% below median its 10-year median of 2.14. Over the past 10 years, this metric has ranged from a low of 0.91 to a high of 3.40. The Software industry median PS Ratio is 2.03. Cognizant Technology Solutions' value of 0.89 is 56.2% below this industry median. Based on the distribution chart, Cognizant Technology Solutions ranks #770 out of 2776 companies in the Software industry, which is above the industry midpoint. 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' PS Ratio compare to FIS and CDW?
According to the Software industry distribution chart, Cognizant Technology Solutions ranks #770 out of 2776 companies for PS Ratio. This puts Cognizant Technology Solutions in the upper half of its industry. The industry median PS Ratio is 2.03. Cognizant Technology Solutions' value of 0.89 is 56.2% below this benchmark. Historically, Cognizant Technology Solutions' own PS Ratio has ranged from 0.91 to 3.40 over the past decade. While the company's 10-year median is 2.14 vs. the industry median of 2.03, 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 PS Ratio for a Software company?
The median PS Ratio among Software companies is 2.03, based on 2,776 companies in the industry. Companies in the top quartile (top 25%) have a PS Ratio significantly above this median, while those in the bottom quartile fall well below. However, PS Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cognizant Technology Solutions's current PS Ratio of 0.89 is 56.2% 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 PS Ratio mean?
A high PS Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Sales ratio is the ratio of share price to a company's revenue per share. View historical data on Cognizant Technology Solutions and its competitors. For the Software industry, the median PS Ratio is 2.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cognizant Technology Solutions's current PS Ratio is 0.89, which is 58% below median its own 10-year median of 2.14. 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 MXN1,475.00, compared to a current price of MXN722.03 — trading 51% below its estimated fair value. The current PS Ratio is 0.89, which is 58% below median its 10-year median of 2.14 and 56.2% below the Software industry median of 2.03. 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 PS Ratio calculated?
PS Ratio is calculated from a company's financial statements. For Cognizant Technology Solutions (MEX:CTSH), the current PS Ratio is 0.89 as of Jul. 02, 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 51% below its estimated GF Value™ of MXN1,475.00.
GuruFocus considers Cognizant Technology Solutions to be Significantly Undervalued.
Key valuation signals for MEX:CTSH:
PS Ratio: 0.89 (58% below median its 10-year median of 2.14)
GF Value™: MXN1,475.00 vs. price of MXN722.03 (51% below fair value)
Industry Position: 56.2% below the Software median (#770 of 2776)
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.
69GF Score
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