What Is CTSH Fair Value?
Cognizant (CTSH) fair value estimate using multiple valuation models, updated daily.
As of October 14, 2026, Cognizant (CTSH) has a composite fair value estimate of $79.83 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $61.33, suggesting the stock is undervalued by 30.2%.
Data as of October 14, 2026 (today)
Composite Fair Value
Undervalued4 of 4 models$79.83
vs. current price of $61.33(+30.2%)
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 →
$108.40
+76.7%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 →
$31.43
-48.8%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 →
$64.37
+5.0%Fair Value
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.
$57.55
-6.2%Fair Value
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 $61.33 is 76.7% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $2.43B | $2.23B |
| Year 2 | $2.66B | $2.25B |
| Year 3 | $2.91B | $2.26B |
| Year 4 | $3.19B | $2.28B |
| Year 5 | $3.50B | $2.29B |
| Year 6 | $3.83B | $2.31B |
| Year 7 | $4.20B | $2.32B |
| Year 8 | $4.60B | $2.34B |
| Year 9 | $5.04B | $2.35B |
| Year 10 | $5.52B | $2.37B |
| Terminal Value | $89.42B | $38.37B |
What Are CTSH's Key Financial Metrics?
Earnings & Growth
Current Price
$61.33
EPS (TTM)
$4.65
Forward P/E
9.7
Profit Margin
10.3%
Cash & Balance Sheet
Free Cash Flow
2.2B
EBITDA
4B
Book Value
$32.00
Total Debt
2.1B
What Do Analysts Say About CTSH?
Low
$47.00
Average
$66.14
High
$93.00
Upside
+7.8%
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 $79.83. The stock is currently trading at $61.33, 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 $61.33 is 30.2% below our estimated fair value of $79.83.
What do Wall Street analysts say about CTSH?
25 analysts cover Cognizant with a consensus rating of "Buy." The average price target is $66.14, ranging from $47.00 to $93.00. This implies 7.8% upside from the current price.