Cognizant Technology SolutionsMEX:CTSH 74 5-Year Yield-on-Cost % is 4.25 as of Jul. 11, 2026, which is 120% above its 10-year median of 1.93. GuruFocus rates MEX:CTSH with a GF Score™ of 74/100 and a GF Value™ of MXN1,500.89 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,029 Software companies, Cognizant Technology Solutions ranks better than 61.13% on this metric.
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Cognizant Technology Solutions 5-Year Yield-on-Cost % Related Terms
MEX:CTSH vs FIS, CDW, BR: 5-Year Yield-on-Cost % Comparison
For the Information Technology Services subindustry, Cognizant Technology Solutions's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Software Industry
For the Software industry and Technology sector, Cognizant Technology Solutions's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Cognizant Technology Solutions's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Cognizant Technology Solutions (MEX:CTSH) has a 5-Year Yield-on-Cost % of 4.25 as of Jul. 11, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Cognizant Technology Solutions and its competitors. This is 120% above median its historical median of 1.93. Over the past decade, Cognizant Technology Solutions' 5-Year Yield-on-Cost % has ranged from 0.30 to 4.48. According to the industry distribution chart, Cognizant Technology Solutions ranks #400 out of 1029 companies in the Software industry, placing it in the top 38.9%.
Is Cognizant Technology Solutions' 5-Year Yield-on-Cost % too high?
Cognizant Technology Solutions' current 5-Year Yield-on-Cost % of 4.25 is 120% above median its 10-year median of 1.93. Over the past 10 years, this metric has ranged from a low of 0.30 to a high of 4.48. The Software industry median 5-Year Yield-on-Cost % is 3.05. Cognizant Technology Solutions' value of 4.25 is 39.3% above this industry median. Based on the distribution chart, Cognizant Technology Solutions ranks #400 out of 1029 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' 5-Year Yield-on-Cost % compare to FIS and CDW?
According to the Software industry distribution chart, Cognizant Technology Solutions ranks #400 out of 1029 companies for 5-Year Yield-on-Cost %. This puts Cognizant Technology Solutions in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 3.05. Cognizant Technology Solutions' value of 4.25 is 39.3% above this benchmark. Historically, Cognizant Technology Solutions' own 5-Year Yield-on-Cost % has ranged from 0.30 to 4.48 over the past decade. While the company's 10-year median is 1.93 vs. the industry median of 3.05, 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 5-Year Yield-on-Cost % for a Software company?
The median 5-Year Yield-on-Cost % among Software companies is 3.05, based on 1,029 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cognizant Technology Solutions's current 5-Year Yield-on-Cost % of 4.25 is 39.3% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Cognizant Technology Solutions and its competitors. For the Software industry, the median 5-Year Yield-on-Cost % is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cognizant Technology Solutions's current 5-Year Yield-on-Cost % is 4.25, which is 120% above median its own 10-year median of 1.93. 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 MXN1,500.89, compared to a current price of MXN760.00 — trading 49.4% below its estimated fair value. The current 5-Year Yield-on-Cost % is 4.25, which is 120% above median its 10-year median of 1.93 and 39.3% above the Software industry median of 3.05. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Cognizant Technology Solutions (MEX:CTSH), the current 5-Year Yield-on-Cost % is 4.25 as of Jul. 11, 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 MXN760.00 is trading 49.4% below its estimated GF Value™ of MXN1,500.89.
GuruFocus considers Cognizant Technology Solutions to be Significantly Undervalued.
Key valuation signals for MEX:CTSH:
5-Year Yield-on-Cost %: 4.25 (120% above median its 10-year median of 1.93)
GF Value™: MXN1,500.89 vs. price of MXN760.00 (49.4% below fair value)
Industry Position: 39.3% above the Software median (#400 of 1029)
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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