--- title: Cognizant (CTSH) — intrinsic value and fair price canonical: https://sweetvaluelab.com/stocks/ctsh ticker: CTSH as_of: 2026-10-17 sector: Technology industry: Information Technology Services --- # Cognizant (CTSH) Cognizant (CTSH) closed at $66.03 on Oct 16, 2026, undervalued by 33% vs its model value of $98.98 (from a five-year discounted cash flow). ## Key figures | Figure | Value | | --- | ---: | | Last close | $66.03 (Oct 16, 2026) | | Model value (from a five-year discounted cash flow) | $98.98 | | Price vs model | undervalued by 33% vs model | | Range of that model | $70.35 – $180.37 | | Market value | $29.7B | | P/E (fiscal 2025) | 14.5 | | Net margin (fiscal 2025) | 10.6% | | Free cash flow (fiscal 2025) | $2.6B | | Dividend yield (trailing twelve months) | 1.97% | | Beta | 0.85 | | Cost of capital (WACC) | 8.73% | | Business classification | Dividend Payer (Low/slowing growth (~4% recent), Moderate margins (11% net margin), Pays dividends, Highly cyclical earnings, Strong FCF yield (8.7%)) | ## On the stock lists | List | Place | Figure | Page | | --- | ---: | ---: | --- | | Highest free cash flow yield | #49 | 8.7% | https://sweetvaluelab.com/lists/highest-free-cash-flow-yield | ## Dividends | Figure | Value | | --- | ---: | | Trailing dividend yield | 1.97% | | Dividends per share, last 12 months | $1.30 | | Dividends / free cash flow (fiscal 2025) | 23.5% | | Raised | 6 years in a row | | Growth over 5 years | 6.7% a year | | Latest payment | $0.33, ex-date Aug 18, 2026, paid Aug 25, 2026 | | Year of payments | Dividends per share | | --- | ---: | | To Aug 19, 2021 | $0.94 | | To Aug 18, 2022 | $1.05 | | To Aug 18, 2023 | $1.14 | | To Aug 20, 2024 | $1.19 | | To Aug 18, 2025 | $1.23 | | Trailing twelve months (to Aug 18, 2026) | $1.30 | ## Valuation models Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026. | Model | Role | Value per share | Low | High | | --- | --- | ---: | ---: | ---: | | DCF · Perpetuity growth · 5y | primary | $98.98 | $70.35 | $180.37 | | DCF · Perpetuity growth · 10y | cross check | $104.72 | $75.93 | $185.11 | | DCF · EBITDA exit · 5y | cross check | $102.45 | $70.35 | $140.34 | | DCF · EBITDA exit · 10y | cross check | $107.42 | $75.88 | $149.70 | | P/E · peers | cross check | $97.72 | $83.72 | $116.80 | | P/E · own history | cross check | $83.47 | $75.46 | $93.58 | | PEG | sanity check | $59.25 | $59.25 | $59.25 | | EV/EBITDA · peers | cross check | $102.69 | $91.61 | $132.00 | | EV/Revenue · peers | cross check | $108.07 | $81.39 | $162.41 | | Earnings power value | cross check | $58.29 | $50.14 | $69.82 | | Dividend discount | cross check | $22.36 | $15.58 | $35.86 | ## Insider activity (SEC Form 4) Past 90 days: 0 open-market buys ($0) and 3 open-market sales ($174,698.7); 10b5-1 plan sales included. | Date | Insider | Relationship | Transaction | Shares | Value | | --- | --- | --- | --- | ---: | ---: | | Oct 1, 2026 | Kerdman Alina | SVP, Controller & CAO | Option/RSU exercise | 207 | $0 | | Oct 1, 2026 | Kerdman Alina | SVP, Controller & CAO | Tax withholding | 69 | $3,963.4 | | Oct 1, 2026 | Kerdman Alina | SVP, Controller & CAO | Option/RSU exercise | 207 | — | | Sep 30, 2026 | Kerdman Alina | SVP, Controller & CAO | Open-market sell (10b5-1 plan) | 139 | $7,906.3 | | Sep 15, 2026 | Gummadi Surya | President - Americas | Option/RSU exercise | 1,397 | — | ## Recent SEC filings | Filed | Form | What | Filing | | --- | --- | --- | --- | | Oct 6, 2026 | 8-K | 1.01 Entry into a Material Agreement; 2.03 Creation of a Direct Financial Obligation; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1058290/000105829026000033/ctsh-20261005.htm | | Jul 29, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/1058290/000105829026000031/ctsh-20260630.htm | | Jul 29, 2026 | 8-K | 2.02 Results of Operations (Earnings); 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1058290/000105829026000030/ctsh-20260729.htm | | Jul 10, 2026 | 8-K | 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1058290/000105829026000025/ctsh-20260630.htm | | Jun 3, 2026 | 8-K | 5.07 Submission of Matters to a Shareholder Vote | https://www.sec.gov/Archives/edgar/data/1058290/000105829026000022/ctsh-20260602.htm | ## Superinvestors holding it (latest 13F) | Manager | Quarter | Shares | Value | | --- | --- | ---: | ---: | | Richard Pzena | 2026-06-30 | 26,529,172 | $1.0B | | Dodge & Cox | 2026-06-30 | 14,542,493 | $563.2M | | Yacktman | 2026-06-30 | 3,150,565 | $122.0M | | Sarah Ketterer | 2026-06-30 | 494,846 | $19.2M | 6 tracked managers in all. ## About Cognizant Technology Solutions Corporation functions as a global professional services firm, delivering a comprehensive suite of consulting, technology, and outsourcing solutions across North America, Europe, and other international markets. Its operations are structured into four primary divisions: Financial Services, Healthcare, Products and Resources, and Communications, Media and Technology. Within the Financial Services sector, Cognizant provides advanced services such as enhancing customer experiences, implementing robotic process automation (RPA), and leveraging analytics and artificial intelligence (AI) to address needs in areas like digital lending, fraud prevention, and modern payment systems. For its Healthcare clients, the company focuses on navigating industry shifts toward consumer-centric models, outcome-based agreements, and digital health initiatives, striving to deliver… --- Source: https://sweetvaluelab.com/stocks/ctsh (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.