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Cognizant Technology Solutions PS Ratio

: 1.90 (As of Today)
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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 $69.72. Cognizant Technology Solutions's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2022 was $36.68. Hence, Cognizant Technology Solutions's PS Ratio for today is 1.90.

Good Sign:

Cognizant Technology Solutions Corp stock PS Ratio (=1.9) is close to 2-year low of 1.8

The historical rank and industry rank for Cognizant Technology Solutions's PS Ratio or its related term are showing as below:

CTSH' s PS Ratio Range Over the Past 10 Years
Min: 1.42   Med: 2.79   Max: 4.08
Current: 1.89

During the past 13 years, Cognizant Technology Solutions's highest PS Ratio was 4.08. The lowest was 1.42. And the median was 2.79.

CTSH's PS Ratio is ranked better than
61.07% of 2682 companies
in the Software industry
Industry Median: 2.77 vs CTSH: 1.89

Cognizant Technology Solutions's Revenue per Sharefor the three months ended in Jun. 2022 was $9.42. Its Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2022 was $36.68.

Good Sign:

Cognizant Technology Solutions Corp has shown predictable revenue and earnings growth.

During the past 12 months, the average Revenue per Share Growth Rate of Cognizant Technology Solutions was 12.50% per year. During the past 3 years, the average Revenue per Share Growth Rate was 8.30% per year. During the past 5 years, the average Revenue per Share Growth Rate was 9.00% per year. During the past 10 years, the average Revenue per Share Growth Rate was 13.10% per year.

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 7.30% per year. And the median was 27.90% per year.

Back to Basics: PS Ratio


Cognizant Technology Solutions PS Ratio Historical Data

The historical data trend for Cognizant Technology Solutions's PS Ratio can be seen below:

* 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.

* Premium members only.

Cognizant Technology Solutions Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
PS Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.85 2.30 2.07 2.66 2.53

Cognizant Technology Solutions Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
PS Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.12 2.19 2.53 2.49 1.84

Competitive Comparison

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 Distribution

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 PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=69.72/36.675
=1.90

Cognizant Technology Solutions's Share Price of today is $69.72.
Cognizant Technology Solutions's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $36.68.

* 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:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Cognizant Technology Solutions  (NAS: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.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

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

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Cognizant Technology Solutions Business Description

Cognizant Technology Solutions logo
Address
300 Frank W. Burr Boulevard, Suite 36, 6th Floor, Teaneck, NJ, USA, 07666
Cognizant is a global IT services provider, offering consulting and outsourcing services to some of the world's largest enterprises spanning the financial services, media and communications, healthcare, natural resources, and consumer products industries. Cognizant employs nearly 300,000 people globally, roughly 70% of whom are in India, although the company's headquarters are in Teaneck, New Jersey.
Executives
Rohleder Stephen J director C/O ACCENTURE 161 N. CLARK STREET CHICAGO IL 60601
Nambiar Rajesh officer: President, Digital Business 300 FRANK W. BURR BLVD STE. 36, 6TH FL. TEANECK NJ 07666
Wijnberg Sandra S director 100 E. PRATT STREET BA-1320 BALTIMORE MD 21202
Abdalla Zein director 700 ANDERSON HILL ROAD LEGAL DEPARTMENT, 1/2 PURCHASE NY 10577
Velli Joseph M director
Mackay Leo S. Jr. director C/O COGNIZANT TECHNOLOGY SOLUTIONS CORP. 300 FRANK W. BURR BLVD., STE. 36, 6 FL. TEANECK NJ 07666
Dineen John M. director MERRIMACK PHARMACEUTICALS, INC. ONE KENDALL SQUARE, SUITE B7201 CAMBRIDGE MA 02139
Kim John Sunshin officer: EVP & General Counsel 300 FRANK W. BURR BLVD., STE. 36, 6FL. TEANECK NJ 07666
Deskus Archana director 2929 ALLEN PARKWAY SUITE 2100 HOUSTON TX 77019
Bali Vinita director C/O BUNGE LIMITED 50 MAIN STREET, 6TH FLOOR WHITE PLAINS NY 10606
Patsalos-fox Michael director 300 FRANK W. BURR BLVD., STE. 36, 6 FL. TEANECK NJ 07666
Morgenstern Ursula officer: President, Global Markets 300 FRANK W. BURR BLVD., STE. 36, 6 FL. TEANECK NJ 07666
Breakiron-evans Maureen director C/O COGNIZANT TECHNOLOGY SOLUTIONS CORP. 300 FRANK W. BURR BLVD., STE. 36, 6 FL. TEANECK NJ 07666
Stafford Andrew J officer: EVP, Head of Global Delivery C/O COGNIZANT TECHNOLOGY SOLUTIONS CORP. 300 FRANK W. BURR BLVD., STE. 36, 6 FL. TEANECK NJ 07666
Hyttenrauch Gregory Lawrence officer: President, Digital Sys & Tech 300 FRANK W. BURR BLVD., STE. 36, 6 FL. TEANECK NJ 07666

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