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Added to YB: 2026-07-21

Pitch date: 2026-07-18

CTSH [bullish]

Cognizant Technology Solutions Corporation

+1.11%

current return

Author Info

No bio for this author

Company Info

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally.

Market Cap

$21.2B

Pitch Price

$44.15

Price Target

N/A

Dividend

2.95%

EV/EBITDA

5.06

P/E

9.73

EV/Sales

0.97

Sector

IT Services

Category

value

Show full summary:
$CTSH DCF valuation model

CTSH: Labor-cost arbitrage play—73% of 357.6k workforce in low-cost India serving Western clients. Trades <10 P/E, below historical avg. DCF assumes 4.6%/3.3% 5Y growth, 2.5% perpetuity, 18.3% EBITDA margin, 8.4% WACC, 14-15% ROIC, narrow moat. 40% discount to FV; ~19% annual alpha if realized in 3yrs. Q1'26 rev +5.8%, bookings +11% to $29.6B.

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