What Is CTSH Fair Value?
Cognizant (CTSH) fair value estimate using multiple valuation models, updated daily.
As of July 16, 2026, Cognizant (CTSH) has a composite fair value estimate of $69.00 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $43.18, suggesting the stock is undervalued by 59.8%.
Data as of July 16, 2026 (today)
Composite Fair Value
Undervalued4 of 4 models$69.00
vs. current price of $43.18(+59.8%)
How Is CTSH Fair Value Calculated?
Four independent models estimate what CTSH is worth. Each uses different inputs and assumptions. The composite blends them by weight.
CTSH Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
35% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$84.51
+95.7%Undervalued
Inputs used
DDM (Dividend Discount Model)
15% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
$26.79
-38.0%Overvalued
Inputs used
CTSH Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
25% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$63.82
+47.8%Undervalued
Inputs used
PEG (Price/Earnings to Growth)
25% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$56.94
+31.9%Undervalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $43.18 is 95.7% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $2.07B | $1.90B |
| Year 2 | $2.23B | $1.88B |
| Year 3 | $2.42B | $1.87B |
| Year 4 | $2.62B | $1.86B |
| Year 5 | $2.83B | $1.84B |
| Year 6 | $3.06B | $1.83B |
| Year 7 | $3.31B | $1.82B |
| Year 8 | $3.58B | $1.80B |
| Year 9 | $3.88B | $1.79B |
| Year 10 | $4.19B | $1.78B |
| Terminal Value | $66.58B | $28.24B |
What Are CTSH's Key Financial Metrics?
Earnings & Growth
Current Price
$43.18
EPS (TTM)
$4.63
Forward P/E
7.0
Profit Margin
10.4%
Cash & Balance Sheet
Free Cash Flow
1.9B
EBITDA
3.9B
Book Value
$31.79
Total Debt
1.1B
What Do Analysts Say About CTSH?
Low
$42.00
Average
$63.90
High
$88.00
Upside
+48.0%
CTSH Fair Value FAQ
What is the fair value of CTSH?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), CTSH's estimated fair value is $69.00. The stock is currently trading at $43.18, which makes it undervalued by our analysis.
How is CTSH's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is CTSH overvalued or undervalued?
Based on our analysis, CTSH is undervalued. The current price of $43.18 is 59.8% below our estimated fair value of $69.00.
What do Wall Street analysts say about CTSH?
25 analysts cover Cognizant with a consensus rating of "Buy." The average price target is $63.90, ranging from $42.00 to $88.00. This implies 48.0% upside from the current price.