Cognizant Technology Solutions Corp. (0QZ5) fair value: what the stock is really worth
As of Oct 2, 2026: fair value of Cognizant Technology Solutions Corp. $96.23, price $58.80, upside +63.7%, quality 74 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range $38.39 – $87.76 · fair‑value band $65.09 – $134.79 · the $58.80 price screens below the $96.23 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 24, 2026.
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Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services; Health Sciences; Products and Resources; and Communications, Media and Technology.
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Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services; Health Sciences; Products and Resources; and Communications, Media and Technology. The company provides services including artificial intelligence (AI) and other technology services and solutions, consulting, application development, systems integration, quality engineering and assurance, engineering research and development, application maintenance, infrastructure, security, and business process services and automation. It also offers AI-led automation, which includes advisory, and process and IT automation solutions designed to simplify and accelerate automation adoption; business process outsourcing services, which help deliver business outcomes including revenue growth, increased customer and employee satisfaction, and cost savings; and Cognizant Moment, a digital experience service that uses AI to reimagine customer experiences and engineer strategies aimed at driving growth. In addition, the company develops, licenses, implements, and supports proprietary and third-party software products and platforms; and develops industry-specific products and services. It offers solution to healthcare providers and payers, life sciences companies, banking, capital markets, payments and insurance companies, manufacturers, automakers, retailers, consumer goods, travel and hospitality, communications, media and entertainment, education, information services, and technology companies, as well as businesses providing logistics, energy, and utility services. The company has a strategic partnership with Uniphore Technologies Inc. for the development of AI solutions that combine small language models and AI agents. Cognizant Technology Solutions Corporation was incorporated in 1988 and is headquartered in Teaneck, New Jersey.
Stock analysis
Cognizant Technology Solutions Corp. (0QZ5) currently trades at $58.80, while our model-based Fair Value estimate is $96.23, implying the stock looks roughly 38.9% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $109.67 per share, and 18 of the 26 models we run sit above the $58.80 price.
Bear case: the Dividend Discount group reads lowest at $15.93, and 8 of the 26 models stay below the price. Evidence for this calculation is medium.
Scenario range: $65.09 (bear) to $134.79 (bull), the price of $58.80 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 74/100 (solid quality), in the Technology sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Cognizant Technology Solutions Corp. reported revenue of $21.1B in FY2025 versus $18.5B in FY2021, a compound +3.3%/yr. Reported net income was $2.2B in FY2025, compounding +1.1%/yr from FY2021.
Key figures
Market cap $28.8B · P/E ratio 0.1 · P/S ratio 0.01 · EPS (TTM) $4.17 · Dividend yield 2.2% · Net margin 10.6% · Return on equity 14.9% · Return on assets (EBIT) 15.9%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
The share trades about 31% below its 52-week high and 53% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at 44% fair-value upside, at 64%, 0QZ5 screens cheaper than that median.
Fair Value models
Bear $65.09Fair Value $96.23Bull $134.79
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then ($2.19 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.79/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+7.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.8%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.9%
Start year 2020 (pandemic). Over 10 years: +5.4% a year
Revenue growth 27 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+24.4%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+9.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year+6.8%
Dividend (yield on the price)2.2%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.6.8% vs 6.0%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.14% → 16%
Start year 2020 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes about as much growth as the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+3.7%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+4.6%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in USD, USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +1.3% a year for the price and +2.2% for the forecasts.
Compare Cognizant Technology Solutions Corp. with another stock
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Information Technology Services · 467 stocks
Beats the industry median on 10/10 measures
Overall it ranks above its industry peers.
Valuation
Quality Score74 · Top 25%
Fair Value upside+63.1% · Top 25%
Profitability
Return on equity (TTM)14.9% · Above median
Return on assets10.4% · Top 25%
Net margin (TTM)10.4% · Top 25%
Operating margin (TTM)15.6% · Top 25%
Growth and dividend
Revenue growth5.8% · Above median
Dividend yield (TTM)2.2% · Above median
Balance sheet
Debt / equity0.04× · Below median
Valuation Multiplesvs Information Technology Services median · lower = cheaper
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Is Cognizant Technology Solutions Corp. (0QZ5) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of $96.23 versus a price of $58.80, about +64% upside (undervalued).
What is the fair value of 0QZ5?
Our model-based fair value for Cognizant Technology Solutions Corp. is $96.23 (as of Sep 24, 2026), built from audited fundamentals. The current price: $58.80.
What is the quality score of 0QZ5?
Cognizant Technology Solutions Corp. has a Quality Score of 74/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Cognizant Technology Solutions Corp. (0QZ5)?
Our model-based price target is the fair value of $96.23 (as of Sep 24, 2026) from 26 valuation models. Cautious scenario $65.09, optimistic scenario $134.79. It is a calculation from audited fundamentals, not an analyst target.
What is the Cognizant Technology Solutions Corp. stock forecast for 2026?
Our models put fair value at $96.23, about +64% upside versus a price of $58.80 (undervalued). Cautious scenario $65.09, optimistic scenario $134.79. The calculation is refreshed regularly with new filings.
What is the revenue of Cognizant Technology Solutions Corp. (0QZ5)?
Cognizant Technology Solutions Corp. reported trailing-twelve-month revenue of about $21.4B (latest available figure, as of Sep 24, 2026).
Does Cognizant Technology Solutions Corp. pay a dividend?
Cognizant Technology Solutions Corp. currently shows a dividend yield of about 2.18% relative to its recent price (as of Sep 24, 2026).
What growth is priced into Cognizant Technology Solutions Corp. (0QZ5)?
For today's price to be fair in a discounted-cash-flow model, Cognizant Technology Solutions Corp. would have to grow free cash flow by +3.7 % per year for five years (discount rate 9.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +4.9 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of 0QZ5 use?
Our models discount Cognizant Technology Solutions Corp. at 9.9 %: a base by market capitalisation (unknown), damped by beta 0.86, country premium for United Kingdom. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Cognizant Technology Solutions Corp. that is +3.7 % per year a year over ten years, using the same discount rate (9.9 %) and the same formula as our fair value.
How much growth has Cognizant Technology Solutions Corp. (0QZ5) delivered so far?
Over the past 5 years revenue at Cognizant Technology Solutions Corp. grew +4.9 % a year. The price currently implies +3.7 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Cognizant Technology Solutions Corp. (0QZ5) growing?
The median revenue growth in the sector is +7.2 % a year. That is the yardstick for the growth priced into Cognizant Technology Solutions Corp. (+3.7 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Cognizant Technology Solutions Corp. (0QZ5)?
The free-cash-flow yield on the price is 6.82 %: that much free cash flow Cognizant Technology Solutions Corp. produces per unit of market value. When it exceeds the discount rate of our models (9.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Cognizant Technology Solutions Corp. (0QZ5)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Cognizant Technology Solutions Corp. it is $96.23 per share (as of Sep 24, 2026), against a price of $58.80. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Cognizant Technology Solutions Corp. stock overvalued or undervalued in 2026?
As of Sep 24, 2026, 0QZ5 trades below its calculated fair value: price $58.80, fair value $96.23, a gap of about +64% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 0QZ5?
No. The price is what the market pays today ($58.80); the fair value is what the company's own numbers justify ($96.23). For Cognizant Technology Solutions Corp. the two are $37.43 per share apart. That gap is exactly why we show both numbers side by side.
How much is Cognizant Technology Solutions Corp. worth?
The market values Cognizant Technology Solutions Corp. at about $28.8B (market capitalisation, as of Sep 24, 2026). Per share that is $58.80; our models calculate a fair value of $96.23 per share.
What do the bullish and bearish scenarios say about 0QZ5?
Our models span a range for Cognizant Technology Solutions Corp.: cautious scenario $65.09, base $96.23, optimistic $134.79 per share (as of Sep 24, 2026, price $58.80). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 0QZ5?
Cognizant Technology Solutions Corp. trades at a price-to-earnings ratio of 0.1 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $96.23 is built from several models across several years.
How solid is the balance sheet of Cognizant Technology Solutions Corp. (0QZ5)?
Balance-sheet figures for Cognizant Technology Solutions Corp. (as of Sep 24, 2026): return on equity 14.9%, debt of 0.04 per unit of equity. They feed the Quality Score of 74/100, which measures business quality independently of the share price.
How far is 0QZ5 from its 52-week high?
Cognizant Technology Solutions Corp. trades at $58.80, about 31% below its 52-week high of $85.20 and 53% above the low of $38.39 (as of Oct 2, 2026). Distance from the high says nothing about value: that is what the fair value of $96.23 is for.
Which stocks are comparable to Cognizant Technology Solutions Corp.?
From the same area (Technology) we also value International Business Machines Corporation, Accenture plc, Tata Consultancy Services Limited, Infosys Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Cognizant Technology Solutions Corp. stock attractive at the current price?
The data as of Sep 24, 2026: price $58.80, calculated fair value $96.23 (+64%), Quality Score 74/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 0QZ5 calculated?
We run Cognizant Technology Solutions Corp. through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $96.23, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. Cognizant Technology Solutions Corp. currently trades 39 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Cognizant Technology Solutions Corp. (0QZ5)?
The closing price on Oct 2, 2026 was $58.80. Our model-based fair value is $96.23, about +64% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Cognizant Technology Solutions Corp. right now?
The rarer combination: high quality (74/100) AND below fair value. That earns a closer look rather than a quick verdict. The price is below even our cautious bear case ($65.09). The market is more pessimistic than our downside scenario. A fairly wide model range ($65.09 to $134.79) leaves room in how you read the outcome.
Where does the earnings growth of Cognizant Technology Solutions Corp. (0QZ5) come from?
Earnings per share at Cognizant Technology Solutions Corp. grew +6.5 % a year from 2014 to 2025. Broken into its drivers: revenue per share +8.3 %, EBIT margin −1.5 %, tax rate +0.0 %, residual (interest, one-offs) −0.2 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Cognizant Technology Solutions Corp.
How large is the market capitalisation of Cognizant Technology Solutions Corp. (0QZ5)?
The market capitalisation of Cognizant Technology Solutions Corp. is $28.8B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Cognizant Technology Solutions Corp. (0QZ5)?
The price-to-sales ratio of Cognizant Technology Solutions Corp. is 0.01 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Cognizant Technology Solutions Corp. (0QZ5)?
Earnings per share at Cognizant Technology Solutions Corp. are $4.17 (price ÷ EPS = P/E 0.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Cognizant Technology Solutions Corp. (0QZ5)?
The dividend yield of Cognizant Technology Solutions Corp. is 2.2% (payout 30.7%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Cognizant Technology Solutions Corp. (0QZ5)?
The net margin of Cognizant Technology Solutions Corp. is 10.6% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Cognizant Technology Solutions Corp. (0QZ5)?
The return on equity (ROE) of Cognizant Technology Solutions Corp. is 14.9% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Cognizant Technology Solutions Corp. (0QZ5)?
On an EBIT basis the return on assets of Cognizant Technology Solutions Corp. is 15.9% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Cognizant Technology Solutions Corp. (0QZ5)?
The operating margin of Cognizant Technology Solutions Corp. is 15.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Cognizant Technology Solutions Corp. (0QZ5)?
Revenue at Cognizant Technology Solutions Corp. is growing +5.8% versus a year earlier (3y avg +2.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Cognizant Technology Solutions Corp. (0QZ5)?
Earnings per share at Cognizant Technology Solutions Corp. are growing +3.6% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Cognizant Technology Solutions Corp. (0QZ5) hold?
Cognizant Technology Solutions Corp. holds more cash than debt, $326M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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