CTSH Cognizant Technology Solutions PE ratio, current and historical analysis
- Stocks
- Technology
- NASDAQ: CTSH
- PE Ratio
The PE ratio for Cognizant Technology Solutions stock stands at 16.75 as of Jun 4, 2025. This is calculated based on the TTM EPS of $4.76 and the stock price of $79.74 per share. An increase of 2.1% has been observed in the PE ratio compared to its average of 16.4 of the past four quarters.
CTSH PE ratio history
Over the last ten years, the average PE ratio of Cognizant Technology Solutions has been 20.71. The current 16.75 price-to-earnings ratio is 19% less than the historical average. Analyzing the last ten years, CTSH's PE ratio reached its highest point in the Mar 2018 quarter at 32.07, with a price of $80.5 and an EPS of $2.51. The Sep 2022 quarter saw the lowest point at 12.76, with a price of $57.44 and an EPS of $4.5.
Cognizant Technology Solutions PE ratio history chart
Cognizant Technology Solutions PE ratio by year
Maximum annual increase: 69.03% in 2020
Maximum annual decrease: -40.78% in 2022
| Year | PE ratio | PE change | Price | EPS |
|---|---|---|---|---|
| 2024 | 17.01 | -5.18% | $76.9 | $4.52 |
| 2023 | 17.94 | 38.64% | $75.53 | $4.21 |
| 2022 | 12.94 | -40.78% | $57.19 | $4.42 |
| 2021 | 21.85 | -31.2% | $88.72 | $4.06 |
| 2020 | 31.76 | 69.03% | $81.95 | $2.58 |
| 2019 | 18.79 | 6.88% | $62.02 | $3.3 |
| 2018 | 17.58 | -37.12% | $63.48 | $3.61 |
| 2017 | 27.96 | 27.73% | $71.02 | $2.54 |
| 2016 | 21.89 | -2.62% | $56.03 | $2.56 |
| 2015 | 22.48 | 1.17% | $60.02 | $2.67 |
| 2014 | 22.22 | -10.66% | $52.66 | $2.37 |
| 2013 | 24.87 | 17.15% | $50.49 | $2.03 |
| 2012 | 21.23 | -3.59% | $36.94 | $1.74 |
| 2011 | 22.02 | -26.7% | $32.16 | $1.46 |
| 2010 | 30.04 | 20.59% | $36.65 | $1.22 |
Cognizant Technology Solutions PE ratio by quarter (TTM)
| Year | PE ratio | PE change | Price | EPS |
|---|---|---|---|---|
| Mar 2025 | 16.07 | -5.53% | $76.5 | $4.76 |
| Dec 2024 | 17.01 | -0.41% | $76.9 | $4.52 |
| Sep 2024 | 17.08 | 10.26% | $77.18 | $4.52 |
| Jun 2024 | 15.49 | -11.89% | $68 | $4.39 |
| Mar 2024 | 17.58 | -2.01% | $73.29 | $4.17 |
| Dec 2023 | 17.94 | 9.12% | $75.53 | $4.21 |
| Sep 2023 | 16.44 | 8.3% | $67.74 | $4.12 |
| Jun 2023 | 15.18 | 11.86% | $65.28 | $4.3 |
| Mar 2023 | 13.57 | 4.87% | $60.93 | $4.49 |
| Dec 2022 | 12.94 | 1.41% | $57.19 | $4.42 |
| Sep 2022 | 12.76 | -18.31% | $57.44 | $4.5 |
| Jun 2022 | 15.62 | -27.18% | $67.49 | $4.32 |
| Mar 2022 | 21.45 | -1.83% | $89.67 | $4.18 |
| Dec 2021 | 21.85 | 4.8% | $88.72 | $4.06 |
| Sep 2021 | 20.85 | -4.88% | $74.21 | $3.56 |
CTSH Price vs fair value
You can ether set your own Fair P/E multiple or use one of the automatically calculated Fair P/E multiples.
Fair P/E calculation
PE Ratio is an attempt to estimate a fair PE ratio of a stock based on its earnings and growth rate.
This formula is a modified version of the classic Graham-Dodd Formula (V= EPS x (8.5+2g)), originally developed by Benjamin Graham, to calculate the fair price of a stock based on its earnings and growth rate.
The formula we have created is an adaptation of this approach, designed to maintain a balance between simplicity and growth sensitivity.
It is calculated using the following formula:
IF g < 5: Fair PE = b
IF g >= 5: Fair PE = m × g
Here’s what each part of the formula means:
g: Growth is calculated as the average of the three-year average EPS growth rate and the one-year EPS growth rate (annually). This approach provides a balanced measure of growth by factoring in both the long-term growth trend and the most recent annual growth performance. If one of the growth metrics is not available, the remaining metric is used to determine growth. The fair P/E value is capped at 100 to prevent distortions caused by extreme EPS growth rates, such as those resulting from large percentage increases from a low base.
m: This is the long term historical median PEG (Price/Earnings to Growth) ratio of the overall market. It serves as a benchmark, adjusting the Fair PE based on typical market conditions.
b: Base PE (static value set to 8). If the company's growth rate is less than 5, the Fair PE is set at a conservative baseline of 8. This is because declining companies generally deserve a lower PE ratio.
Fixed vs Dynamic
Fixed: The Fair PE ratio for all data points is calculated using a single, constant average EPS growth rate, determined based on the most recent period. This means that the same growth rate is applied to all historical data points. Dynamic: The Fair PE ratio for each historical data point is calculated using the trailing average EPS growth rate specific to that point in time. This means that for each data point, the corresponding trailing EPS growth rate is used, ensuring that the Fair PE ratio reflects the growth conditions that were relevant at that specific point in history.
CTSH average PE ratio chart
CTSH's current PE ratio is higher than the 3-year average, but it is under its 5 and 10-year averages.
PE vs average
CTSH PE vs peers
CTSH's PE ratio is less than its peer stocks IBM and ACN, but it is above HPQ's.
| Stock name | PE ratio | Market cap |
|---|---|---|
| HPQ Hp Inc | 9.56 | $23.44B |
| CTSH Cognizant Technology Solutions Corp | 16.71 | $39.2B |
| ACN Accenture plc | 25.8 | $214.48B |
| IBM International Business Machines Corp | 44.99 | $247.97B |
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Frequently asked questions
What is Cognizant Technology Solutions's PE ratio?
The price to earnings ratio for CTSH stock as of Jun 4, 2025, stands at 16.75.
What is the 3-year average PE ratio for Cognizant Technology Solutions (CTSH)?
As an average over the last 3 years, CTSH stock has a PE ratio of 15.64.
What is the 5-year average PE ratio for Cognizant Technology Solutions (CTSH)?
As an average over the last 5 years, CTSH stock has a PE ratio of 18.88.
What is the highest PE ratio for CTSH?
The highest quarterly PE ratio in the last ten years has been 32.07 and it was in the Mar 2018 quarter.
How does the current PE ratio for CTSH compare to its historical average?
The current PE ratio of CTSH is 19% lower than the 10-year historical average.
How is CTSH's PE ratio calculated (Cognizant Technology Solutions PE ratio formula)?
You can calculate the P/E ratio by dividing the most recent stock price by the trailing twelve months earnings per share(EPS). As of today (Jun 4, 2025), Cognizant Technology Solutions's share price is $79.74. The company's earnings per share for the trailing twelve months (TTM) ending Mar 2025 is $4.76. Therefore, Cognizant Technology Solutions's price to earnings ratio for today is 16.75. PE RATIO(16.75) = STOCK PRICE($79.74) / TTM EPS($4.76)
All PE ratio stats are based on quarterly TTM periods, unless otherwise specified.