Cognizant Technology Solutions Corp. (CTSH) intrinsic value & 10-year financials

Cognizant Technology Solutions Corp. (CTSH) has a Graham intrinsic value of $85.92 per share. At $66.03 on Oct 17, 2026, the stock trades 23% below that value. Over the last 10 fiscal years revenue grew 5.1% a year to $21.1B, with an average return on invested capital of 17.3%.

Graham intrinsic value
$85.92
Share price (Oct 17, 2026)
$66.03
Price vs Graham value
23% below
Market cap
$32.3B
Revenue (FY2025)
$21.1B
Revenue growth (10-yr CAGR)
5.1%
ROIC (10-yr avg)
17.3%
Free cash flow (FY2025)
$2.6B

CTSH 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $21.1B $2.2B $4.56 $2.6B 16.1% 15.7%
FY2024 $19.7B $2.2B $4.51 $1.8B 14.7% 17.3%
FY2023 $19.4B $2.1B $4.21 $2.0B 13.9% 17.6%
FY2022 $19.4B $2.3B $4.41 $2.2B 15.3% 19.5%
FY2021 $18.5B $2.1B $4.05 $2.2B 15.3% 20.0%
FY2020 $16.7B $1.4B $2.57 $2.9B 12.7% 14.3%
FY2019 $16.8B $1.8B $3.29 $2.1B 14.6% 17.4%
FY2018 $16.1B $2.1B $3.60 $2.2B 17.4% 20.6%
FY2017 $14.8B $1.5B $2.53 $2.1B 16.8% 14.8%
FY2016 $13.5B $1.6B $2.55 $1.3B 17.0% 15.9%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

Cognizant has demonstrated mature, steady growth, with revenue compounding at 5.1% annually over the past decade.

Cognizant has earned high returns on invested capital, averaging 17.3% ROIC over the available history. High ROIC is consistent with a durable franchise, but it is not by itself proof of an economic moat.

Over the decade, Cognizant shows that management has aggressively returned capital to shareholders by retiring 19.8% of outstanding shares.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, Cognizant is modeled at 6.7% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $85.92 per share.

CTSH stock: frequently asked questions

What is the intrinsic value of Cognizant Technology Solutions Corp. (CTSH) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 6.7% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, CTSH's intrinsic value is about $85.92 per share.

Is CTSH stock undervalued?

At $66.03 (close on Oct 17, 2026), CTSH trades 23% below its Graham value of $85.92. On Graham's terms that leaves a margin of safety. A formula is a starting point for research, not a recommendation.

How fast has Cognizant Technology Solutions Corp. grown?

Revenue went from $13.5B in fiscal 2016 to $21.1B in fiscal 2025, a compound annual growth rate of 5.1%. Net income was $2.2B in fiscal 2025.

Does Cognizant Technology Solutions Corp. generate free cash flow?

Cognizant Technology Solutions Corp. generated $2.6B of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 10 of the last 10 reported years.

What is CTSH's return on invested capital?

Average ROIC over the last 10 fiscal years was 17.3%, and average return on equity was 16.2%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this CTSH data come from?

From Cognizant Technology Solutions Corp.'s annual 10-K filings on SEC EDGAR, most recently filed Jul 29, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

Similar computer programming services stocks