What is CTSH's intrinsic value?

TickerWorth's valuation lenses put Cognizant Technology Solutions Corporation (CTSH) between $46.52 and $161.50 per share, versus a market price of $66.03. They disagree too widely for us to state a single fair value, so we publish the range.

Is CTSH overvalued or undervalued?

At $66.03 the price sits inside a range too wide to call either way. We don't call CTSH overvalued or undervalued from a range this wide. This is an educational estimate, not advice.

What discount rate is used for CTSH?

A WACC of 9.2% and a terminal growth rate of 2.5%.

Is Cognizant Technology Solutions stock undervalued?

TickerWorth's fair-value range for Cognizant Technology Solutions Corporation (CTSH) is $46.52 – $161.50 against a market price of $66.03. Too wide to call. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.

Cognizant Technology Solutions (CTSH) DCF valuation and fair value

Our fair-value range for Cognizant Technology Solutions Corporation (CTSH) is $46.52 – $161.50, built on a 9.2% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.

What growth is priced into Cognizant Technology Solutions stock?

no growth rate up to 300%/yr justifies the price under these economics This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $66.03. A model estimate, not investment advice.

Cognizant Technology Solutions (CTSH) insider trading

The most recent insider filing (SEC Form 4) for Cognizant Technology Solutions Corporation (CTSH): Kerdman Alina, SVP, Controller & CAO, option exercise on 2026-10-01. The latest filings are listed on this page. A disclosure, not a signal to trade.

CTSH · Intrinsic value

Is Cognizant Technology Solutions Corporation (CTSH) overvalued or undervalued?

Name: Cognizant Technology Solutions Corporation (CTSH) DCF intrinsic value
Creator: TickerWorth

As of Oct 19, 2026, TickerWorth's valuation lenses put Cognizant Technology Solutions Corporation (CTSH) at $46.52 – $161.50, too broad a range to say where the delayed market price of $66.03 sits in it, so we do not call it over- or undervalued. It is a model estimate, and every input behind it is sourced below.

Model by Miraaj Patel · generated from a hand-researched model · Updated Oct 19, 2026 · How these pages are made

Open full CTSH analysis

What is CTSH worth?

Fair-value range: $46.52 – $161.50
Market price: $66.03
Gap to fair value: —
Verdict: Too wide to call

Price as of 19 Oct 2026, 13:15 UTC · Prices are delayed.Our valuation lenses disagree too widely on this company for us to publish a single number, so we publish the range instead. We do not call it over- or undervalued from a spread this wide.

Fair-value range against the delayed market price: Too wide to call.

Reverse DCF: no growth rate up to 300%/yr justifies the price under these economics

What is CTSH's TickerWorth Score?

A64/100

Cheap against our estimate — but a weaker business

Compared with Technology companies in US

Its strongest point: looks cheap on the numbers. Its weakest: growth is slow or negative.

Value · 87 of 100
Cheaper than 87% of Technology companies in US
Price vs worth · 98 of 100
Quality · 45 of 100
More profitable than 45% of Technology companies in US
Financial health · 57 of 100
Financially stronger than 57% of Technology companies in US
Growth · 19 of 100
Growing faster than 19% of Technology companies in US
Momentum · 68 of 100
Outperformed 68% of Technology companies in US over the past year

Confidence: Medium confidence · Scored 19 Oct 2026, 13:15 UTC

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Where the numbers come from

Hand-researched model

What the modeller flagged

THE MODEL SAYS CHEAP, AND THE DISAGREEMENT IS ABOUT GENAI, NOT ABOUT INPUTS. On house inputs and Cognizant's own guidance, a ~16% margin business growing low-single digits is worth well above today's price. The reverse DCF says the market is pricing something different in kind: holding this model's discount rate and 2026 guidance, today's price needs revenue to SHRINK ~1.3% a year from 2027 forever, or a steady GAAP margin of ~10.3% (vs ~15.9%), or a beta of ~1.57. None of those is in the filings yet - H1 2026 revenue grew 5.2% and margins expanded - but all of them are what an 'AI eats billable hours' thesis looks like.
TERMINAL VALUE IS ~74% OF ENTERPRISE VALUE - just under the 75% line. The WACC +/-1.5pt and terminal growth +/-1pt grid is wide; treat the point estimate as the middle of a range.
BETA IS THE BIGGEST DISCOUNT-SIDE CALL: the published 0.85 is used as is (as for ACN), but the 2-year weekly beta is 0.96 and 1.0 would take ~$8.60/share off. Even at beta 1.0 the model stays well above today's price.
SHARE COUNT IS CONSERVATIVE BY ~3%: the Q2 weighted diluted count (466M) is used per house rule, while 452M were outstanding at quarter-end and ~450M now; the buyback cash is already out of net debt. The difference is ~$2.70/share.
YEAR-1 FCF (~$2.54B) IS WITHIN 5% OF THE LAST REPORTED FCF ($2,665M for FY2025) and inside management's 2026 guide of 90%-100% of net income, so no FCF-gap disclosure is triggered.
THIRD-PARTY PRODUCT RESALE IS INFLATING REPORTED GROWTH: it added ~1.6pt to H1 2026 growth at a thin margin. The margin path absorbs its dilution; if it reverses, revenue growth falls but margin rises - roughly value-neutral.
CONTINGENT ITEMS NOT IN THE VALUE: the $365M India tax deposit (upside if won), the ~$298M Syntel judgment (upside, under appeal), and the amended India-Mauritius tax treaty (downside to the tax rate). Each is under ~$1/share except the treaty, which is unquantified by the company.

Why CTSH gets a range, not one number

At a recent price of $66.03, Cognizant Technology Solutions Corporation (CTSH) sits inside a range too wide to call either way: our valuation lenses put the business somewhere between $46.52 and $161.50 per share. They disagree too widely for us to state a single fair value. We publish the range rather than a midpoint because a number that precise would claim more than the methods can support. This is an educational model, not a price target or a recommendation.

Read the full reasoning

The valuation discounts Cognizant Technology Solutions Corporation's projected free cash flows at a weighted-average cost of capital (WACC) of 9.2%, with a long-run terminal growth rate of 2.5%. About 74% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.

Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, CTSH's modeled DCF value ranges from about $65.99 to $137.34 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.

How to read this page: the DCF fair value is what Cognizant Technology Solutions Corporation would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of CTSH's intrinsic value. Figures update as new filings and prices come in.

Every input behind CTSH's DCF

Input	Value	Source
Base-year revenueCognizant FY2025 10-K (accession 0001058290-26-000008, filed 2026-02-12): us-gaap:Revenues FY2025 = $21,108M, +7.0% on FY2024's $19,736M (+6.4% constant currency), of which the Belcan acquisition (closed Aug-2024) contributed ~2.6 points (Q4/FY2025 release), so organic growth was ~3.8%. Calendar fiscal year, 10-K filed 2026-02-12, so FY2025 is the latest completed year and FY2026 is Year 1. CROSS-CHECK: H1 2026 revenue $10,894M, +5.2% (+4.0% cc) on H1 2025's $10,360M (Q2 2026 release); the H1 figure includes ~0.9pt from the 3Cloud/Astreya acquisitions and ~1.6pt from low-margin third-party product resale.	$21,108,000,000	Cognizant FY2025 10-K (accession 0001058290-26-000008, filed 2026-02-12): us-gaap:Revenues FY2025 = $21,108M, +7.0% on FY2024's $19,736M (+6.4% constant currency), of which the Belcan acquisition (closed Aug-2024) contributed ~2.6 points (Q4/FY2025 release), so organic growth was ~3.8%. Calendar fiscal year, 10-K filed 2026-02-12, so FY2025 is the latest completed year and FY2026 is Year 1. CROSS-CHECK: H1 2026 revenue $10,894M, +5.2% (+4.0% cc) on H1 2025's $10,360M (Q2 2026 release); the H1 figure includes ~0.9pt from the 3Cloud/Astreya acquisitions and ~1.6pt from low-margin third-party product resale.
Base EBIT marginCognizant FY2025 10-K (accession 0001058290-26-000008, filed 2026-02-12): GAAP income from operations $3,389M / $21,108M = 16.06% (us-gaap:OperatingIncomeLoss). It INCLUDES a one-off $62M gain on selling an office complex in India (0.3pt); Cognizant's adjusted margin excluding it was 15.8%. Not used by the engine beyond the cyclical check; the forecast starts from the 2026 guide. CROSS-CHECK: H1 2026 GAAP $1,717M / $10,894M = 15.8%, which nets $84M of Project Leap restructuring against an $81M one-off India provident-fund reversal; adjusted H1 15.8% vs 15.5% a year earlier.	16.1%	Cognizant FY2025 10-K (accession 0001058290-26-000008, filed 2026-02-12): GAAP income from operations $3,389M / $21,108M = 16.06% (us-gaap:OperatingIncomeLoss). It INCLUDES a one-off $62M gain on selling an office complex in India (0.3pt); Cognizant's adjusted margin excluding it was 15.8%. Not used by the engine beyond the cyclical check; the forecast starts from the 2026 guide. CROSS-CHECK: H1 2026 GAAP $1,717M / $10,894M = 15.8%, which nets $84M of Project Leap restructuring against an $81M one-off India provident-fund reversal; adjusted H1 15.8% vs 15.5% a year earlier.
Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast	5% → 4% → 3% → 3% → 3%	ESTIMATEAssumption — TickerWorth's 5-year explicit forecast
Risk-free rateUS 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation. Shared by every researched model in this tracker.	5.2%	US 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation. Shared by every researched model in this tracker.
BetaYahoo Finance / yfinance published 5Y-monthly beta: Published 5Y-monthly beta 0.851, used AS IS (rounded to 0.85) - no normalization, consistent with the ACN model which also held its published figure. Recomputed independently from 59 monthly returns vs the S&P 500: 0.86, so the figure is not a feed error. CAVEAT, and it points one way: the 2026 regime - a 52-week range of $37.08-$87.03, a ~10% one-day fall on 2026-06-18 in sympathy with Accenture, and Nasdaq-100 removal effective 2026-06-22 - is a handful of points in a 60-month regression. The 2-year WEEKLY beta is 0.96. Using 1.0 would lower the value by ~$8.60/share; this is the single largest discount-side judgement and it is flagged in the explainer.	0.85	Yahoo Finance / yfinance published 5Y-monthly beta: Published 5Y-monthly beta 0.851, used AS IS (rounded to 0.85) - no normalization, consistent with the ACN model which also held its published figure. Recomputed independently from 59 monthly returns vs the S&P 500: 0.86, so the figure is not a feed error. CAVEAT, and it points one way: the 2026 regime - a 52-week range of $37.08-$87.03, a ~10% one-day fall on 2026-06-18 in sympathy with Accenture, and Nasdaq-100 removal effective 2026-06-22 - is a handful of points in a 60-month regression. The 2-year WEEKLY beta is 0.96. Using 1.0 would lower the value by ~$8.60/share; this is the single largest discount-side judgement and it is flagged in the explainer.
Terminal growthESTIMATEAssumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability with every other company in this tracker, and consistent with the organic-only forecast. Not obviously generous for a firm that grew organically ~3-4% in 2025-26, but this is exactly the input GenAI puts in question: if AI permanently shrinks the billable-hours pool, perpetual growth could be below zero - and the reverse DCF shows that is what today's price implies. 2.0% takes ~$4.90/share off; 3.0% adds ~$5.70. Must stay well below the ~9.2% WACC; it does.	2.5%	ESTIMATEAssumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability with every other company in this tracker, and consistent with the organic-only forecast. Not obviously generous for a firm that grew organically ~3-4% in 2025-26, but this is exactly the input GenAI puts in question: if AI permanently shrinks the billable-hours pool, perpetual growth could be below zero - and the reverse DCF shows that is what today's price implies. 2.0% takes ~$4.90/share off; 3.0% adds ~$5.70. Must stay well below the ~9.2% WACC; it does.
Diluted sharesCognizant Q2 2026 earnings release, 8-K Ex-99.1 (accession 0001058290-26-000030, filed 2026-07-29): Q2 2026 weighted-average diluted shares 466M (Cognizant reports in whole millions; H1 2026 472M, FY2025 489M). CONSERVATIVE, and by a known amount: Cognizant bought back 22.5M shares for $1,153M during Q2 (including a $500M ASR completed in the quarter), so the period-end count was 452M and yfinance shows ~450.4M outstanding now. The cash spent on those buybacks is already out of the June-30 net debt, so using the weighted count charges for some of them twice; 452M would add ~$2.70/share. The house rule (latest quarter's weighted diluted count) is kept. SBC dilution is small (~$180-200M a year) and is overwhelmed by buybacks - the count fell from 528M (FY2021) to 466M.	466M	Cognizant Q2 2026 earnings release, 8-K Ex-99.1 (accession 0001058290-26-000030, filed 2026-07-29): Q2 2026 weighted-average diluted shares 466M (Cognizant reports in whole millions; H1 2026 472M, FY2025 489M). CONSERVATIVE, and by a known amount: Cognizant bought back 22.5M shares for $1,153M during Q2 (including a $500M ASR completed in the quarter), so the period-end count was 452M and yfinance shows ~450.4M outstanding now. The cash spent on those buybacks is already out of the June-30 net debt, so using the weighted count charges for some of them twice; 452M would add ~$2.70/share. The house rule (latest quarter's weighted diluted count) is kept. SBC dilution is small (~$180-200M a year) and is overwhelmed by buybacks - the count fell from 528M (FY2021) to 466M.
Market priceDelayed quote · as of 2026-10-19 13:15 UTC	$66.03	Delayed quote · as of 2026-10-19 13:15 UTC

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What does Cognizant Technology Solutions Corporation do?

What does it do?

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. It operates in the Information Technology Services industry (Technology sector), headquartered in United States. The company employs roughly 356,700 people.

How does it make money?

The business turns $21.6B in annual revenue into profit. Out of every $100 of sales, about $17 is left as operating profit (operating margin of 17.5%), after a 33% gross margin on the products/services it sells. After all costs, taxes and interest, 10.3% of revenue becomes bottom-line net profit.

Is it financially healthy?

Financially it looks solid: carries modest debt (0.1× equity), comfortably covers its short-term bills (2.2× current ratio), and is currently profitable.

Who at CTSH filed insider trades?

Recent insider filings for Cognizant Technology Solutions Corporation
Date	Insider	Relationship	What happened	Value	Filing
1 Oct 2026	Kerdman Alina	SVP, Controller & CAO	Option exercise	—	Form 4 for Kerdman Alina (opens sec.gov in a new tab)
1 Oct 2026	Kerdman Alina	SVP, Controller & CAO	Shares withheld (tax)	$3,963.36	Form 4 for Kerdman Alina (opens sec.gov in a new tab)
30 Sept 2026	Kerdman Alina	SVP, Controller & CAO	Open-market sale	$7,906.32	Form 4 for Kerdman Alina (opens sec.gov in a new tab)
15 Sept 2026	Gummadi Surya	President - Americas	Option exercise	—	Form 4 for Gummadi Surya (opens sec.gov in a new tab)
15 Sept 2026	Gummadi Surya	President - Americas	Option exercise	—	Form 4 for Gummadi Surya (opens sec.gov in a new tab)
15 Sept 2026	Gummadi Surya	President - Americas	Shares withheld (tax)	$63,330.80	Form 4 for Gummadi Surya (opens sec.gov in a new tab)

A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans

Common questions

What is CTSH's intrinsic value?
TickerWorth's valuation lenses put Cognizant Technology Solutions Corporation (CTSH) between $46.52 and $161.50 per share, versus a market price of $66.03. They disagree too widely for us to state a single fair value, so we publish the range.
Is CTSH overvalued or undervalued?
At $66.03 the price sits inside a range too wide to call either way. We don't call CTSH overvalued or undervalued from a range this wide. This is an educational estimate, not advice.
What discount rate is used for CTSH?
A WACC of 9.2% and a terminal growth rate of 2.5%.
Is Cognizant Technology Solutions stock undervalued?
TickerWorth's fair-value range for Cognizant Technology Solutions Corporation (CTSH) is $46.52 – $161.50 against a market price of $66.03. Too wide to call. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.
Cognizant Technology Solutions (CTSH) DCF valuation and fair value
Our fair-value range for Cognizant Technology Solutions Corporation (CTSH) is $46.52 – $161.50, built on a 9.2% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Cognizant Technology Solutions stock?
no growth rate up to 300%/yr justifies the price under these economics This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $66.03. A model estimate, not investment advice.
Cognizant Technology Solutions (CTSH) insider trading
The most recent insider filing (SEC Form 4) for Cognizant Technology Solutions Corporation (CTSH): Kerdman Alina, SVP, Controller & CAO, option exercise on 2026-10-01. The latest filings are listed on this page. A disclosure, not a signal to trade.