Cognizant Technology SolutionsMEX:CTSH 74 ROC (Joel Greenblatt) % is 83.28% as of Mar. 2026, which is 5% below its 10-year median of 87.49. GuruFocus rates MEX:CTSH with a GF Score™ of 74/100 and a GF Value™ of MXN1,470.39 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,800 Software companies, Cognizant Technology Solutions ranks better than 69.79% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Cognizant Technology Solutions's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 83.28%.
The historical rank and industry rank for Cognizant Technology Solutions's ROC (Joel Greenblatt) % or its related term are showing as below:
MEX:CTSH'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 62.55 Med: 87.49 Max: 131.63
Current: 84.8
During the past 13 years, Cognizant Technology Solutions's highest ROC (Joel Greenblatt) % was 131.63%. The lowest was 62.55%. And the median was 87.49%.
MEX:CTSH's ROC (Joel Greenblatt) % is ranked better than 69.79% of 2800
companies
in the Software industry
Industry Median: 19.625
vs MEX:CTSH: 84.80
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
* 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.
MEX:CTSH vs FIS, CDW, BR: ROC (Joel Greenblatt) % Comparison
For the Information Technology Services subindustry, Cognizant Technology Solutions's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, Cognizant Technology Solutions's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Cognizant Technology Solutions's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 83.28% mean?
Cognizant Technology Solutions (MEX:CTSH) has a ROC (Joel Greenblatt) % of 83.28% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Cognizant Technology Solutions and its competitors. This is near median its historical median of 87.49. Over the past decade, Cognizant Technology Solutions' ROC (Joel Greenblatt) % has ranged from 62.55 to 131.63. According to the industry distribution chart, Cognizant Technology Solutions ranks #846 out of 2800 companies in the Software industry, placing it in the top 30.2%.
Is Cognizant Technology Solutions' ROC (Joel Greenblatt) % too high?
Cognizant Technology Solutions' current ROC (Joel Greenblatt) % of 83.28% is near median its 10-year median of 87.49. Over the past 10 years, this metric has ranged from a low of 62.55 to a high of 131.63. The Software industry median ROC (Joel Greenblatt) % is 19.63. Cognizant Technology Solutions' value of 83.28% is 324.4% above this industry median. Based on the distribution chart, Cognizant Technology Solutions ranks #846 out of 2800 companies in the Software industry, which is above the industry midpoint. Overall, Cognizant Technology Solutions has a GF Score™ of 74/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cognizant Technology Solutions' ROC (Joel Greenblatt) % compare to FIS and CDW?
According to the Software industry distribution chart, Cognizant Technology Solutions ranks #846 out of 2800 companies for ROC (Joel Greenblatt) %. This puts Cognizant Technology Solutions in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 19.63. Cognizant Technology Solutions' value of 83.28% is 324.4% above this benchmark. Historically, Cognizant Technology Solutions' own ROC (Joel Greenblatt) % has ranged from 62.55 to 131.63 over the past decade. While the company's 10-year median is 87.49 vs. the industry median of 19.63, 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 ROC (Joel Greenblatt) % for a Software company?
The median ROC (Joel Greenblatt) % among Software companies is 19.63, based on 2,800 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cognizant Technology Solutions's current ROC (Joel Greenblatt) % of 83.28% is 324.4% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Cognizant Technology Solutions and its competitors. For the Software industry, the median ROC (Joel Greenblatt) % is 19.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cognizant Technology Solutions's current ROC (Joel Greenblatt) % is 83.28%, which is near median its own 10-year median of 87.49. 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 MXN1,470.39, compared to a current price of MXN727.00 — trading 50.6% below its estimated fair value. The current ROC (Joel Greenblatt) % is 83.28%, which is near median its 10-year median of 87.49 and 324.4% above the Software industry median of 19.63. Cognizant Technology Solutions' overall GF Score™ is 74/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Cognizant Technology Solutions (MEX:CTSH), the current ROC (Joel Greenblatt) % is 83.28% 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 MXN727.00 is trading 50.6% below its estimated GF Value™ of MXN1,470.39.
GuruFocus considers Cognizant Technology Solutions to be Significantly Undervalued.
Key valuation signals for MEX:CTSH:
ROC (Joel Greenblatt) %: 83.28% (near median its 10-year median of 87.49)
GF Value™: MXN1,470.39 vs. price of MXN727.00 (50.6% below fair value)
Industry Position: 324.4% above the Software median (#846 of 2800)
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.
74GF Score
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