Explain this page
Arphra AIPlain-English read on Cognizant Technology Solutions Corporation’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Quality composite
ATop tier
A snapshot of the latest fiscal year’s margins, returns on capital, balance-sheet strength and efficiency, computed from the income statement, balance sheet and cash-flow rows. Source income / balance / cash_flow.
Profitability
Gross margin33.7%
Operating margin16.7%
Net margin10.6%
ROE14.9%
ROA10.8%
ROIC14.4%
Liquidity & leverage
Current ratio2.34×
Quick ratio2.34×
Debt / equity0.10×
Net debt / EBITDA-0.08×
Interest coverage95×
Efficiency & per-share
Asset turnover1.02×
Inventory days0
Days sales out.77
FCF / share$5.38
Book value / share$31.15
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Headline | |||||||||
| Market cap | — | — | — | $38.14B | $39.92B | — | — | — | — |
| Enterprise value | — | — | — | $37.41B | $39.6B | — | — | — | — |
| Multiples | |||||||||
| P / E | — | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | 1.90 | 1.88 | — | — | — | — |
| EV / FCF | — | — | — | 20.48 | 15.26 | — | — | — | — |
| Yields | |||||||||
| Earnings yield | — | — | — | +5.87% | +5.59% | — | — | — | — |
| Free cash flow yield | — | — | — | +4.79% | +6.50% | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Margins | |||||||||
| Gross margin | +37.30% | +35.93% | +34.56% | +34.34% | +33.72% | +34.50% | +35.06% | +34.50% | +33.53% |
| Operating margin | +15.27% | +15.28% | +13.89% | +14.65% | +16.72% | +14.97% | +14.97% | +14.73% | +15.49% |
| EBITDA margin | +18.43% | +18.55% | +17.48% | +17.91% | +19.77% | +18.17% | +18.82% | +18.29% | +18.63% |
| EBIT margin | +15.32% | +15.62% | +14.61% | +15.16% | +17.16% | +15.38% | +15.27% | +15.93% | +15.78% |
| Pre-tax margin | +15.29% | +15.54% | +14.44% | +14.96% | +17.59% | +15.77% | +15.67% | +15.39% | +15.28% |
| Net margin | +11.55% | +11.79% | +10.99% | +11.35% | +10.56% | +11.08% | +10.93% | +10.71% | +10.82% |
| Cost structure | |||||||||
| Cost of revenue / sales | +62.70% | +64.07% | +65.44% | +65.66% | +66.28% | +64.94% | +65.48% | +64.75% | +66.03% |
| R&D intensity | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| SG&A intensity | +18.93% | +17.72% | +16.80% | +16.33% | +15.35% | +15.95% | +16.53% | +16.54% | +15.90% |
| Effective tax rate | +24.49% | +24.17% | +23.91% | +24.14% | +39.94% | +29.87% | +29.11% | +29.77% | +30.96% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| Return on equity (ROE) | +17.82% | +18.60% | +16.07% | +15.55% | +14.85% | +15.86% | +15.11% | +14.76% | +15.60% |
| Return on assets (ROA) | +11.97% | +12.83% | +11.50% | +11.22% | +10.78% | +11.53% | +10.93% | +10.67% | +11.29% |
| Return on capital (ROC) | +20.73% | +21.44% | +18.49% | +18.18% | +21.27% | +19.38% | +18.75% | +18.50% | +20.15% |
| Return on invested capital (ROIC) | +15.68% | +16.54% | +14.62% | +14.08% | +13.44% | +14.34% | +13.70% | +13.45% | +14.08% |
| Asset turnover | +103.67% | +108.83% | +104.71% | +98.85% | +102.01% | +104.06% | +99.97% | +99.61% | +104.28% |
| DuPont · ROE decomposition | |||||||||
| Net margin | +11.55% | +11.79% | +10.99% | +11.35% | +10.56% | +11.08% | +10.93% | +10.71% | +10.82% |
| Asset turnover (× revenue / assets) | +103.67% | +108.83% | +104.71% | +98.85% | +102.01% | +104.06% | +99.97% | +99.61% | +104.28% |
| Equity multiplier (× assets / equity) | +148.88% | +145.03% | +139.74% | +138.58% | +137.81% | +137.59% | +138.18% | +138.36% | +138.23% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | |||||||||
| Asset turnover | 1.04 | 1.09 | 1.05 | 0.99 | 1.02 | 1.04 | 1.00 | 1.00 | 1.04 |
| Fixed-asset turnover | 8.80 | 9.83 | 11.67 | 12.77 | 14.02 | — | — | — | — |
| Inventory turnover | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 5.20 | 5.12 | 5.03 | 4.86 | 4.76 | — | — | — | — |
| Payables turnover | 32.14 | 34.58 | 37.58 | 38.11 | 45.43 | — | — | — | — |
| Days outstanding | |||||||||
| Days sales outstanding (DSO) | 70.15 | 71.32 | 72.59 | 75.07 | 76.76 | — | — | — | — |
| Days inventory outstanding (DIO) | — | — | — | — | — | — | — | — | — |
| Days payables outstanding (DPO) | 11.36 | 10.56 | 9.71 | 9.58 | 8.04 | — | — | — | — |
| Cash conversion cycle | 58.80 | 60.76 | 62.88 | 65.49 | 68.72 | — | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 1.17 | 1.12 | 1.10 | 0.95 | 1.29 | 1.07 | 1.12 | 1.13 | 1.14 |
| FCF / Net income | 1.04 | 0.98 | 0.95 | 0.82 | 1.16 | 0.95 | 0.96 | 0.98 | 1.01 |
| FCF margin | +11.97% | +11.51% | +10.40% | +9.26% | +12.29% | +10.48% | +10.50% | +10.46% | +10.91% |
| OCF margin | +13.48% | +13.22% | +12.04% | +10.76% | +13.66% | +11.90% | +12.30% | +12.12% | +12.34% |
| CapEx / Revenue | +1.51% | +1.71% | +1.64% | +1.50% | +1.36% | +1.54% | +1.50% | +1.49% | +1.52% |
| CapEx / D&A | 0.49 | 0.58 | 0.61 | 0.56 | 0.52 | — | — | — | — |
| Stock-based comp / Revenue | +1.33% | +1.34% | 0.00% | 0.00% | +0.86% | — | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 4.05 | 4.41 | 4.21 | 4.51 | 4.55 | 5.72 | 6.19 | 6.87 | 6.26 |
| EPS · basic | 4.06 | 4.42 | 4.21 | 4.52 | 4.56 | 5.70 | 6.17 | 6.91 | 6.24 |
| Book value / share | 22.71 | 23.72 | 26.19 | 28.99 | 31.15 | 32.35 | 35.51 | 37.39 | 35.26 |
| Tangible BV / share | 9.76 | 10.46 | 11.87 | 11.78 | 13.47 | 32.35 | 35.51 | 37.39 | 35.26 |
| Sales / share | 35.05 | 37.43 | 38.32 | 39.71 | 43.79 | 46.32 | 49.05 | 51.53 | 50.83 |
| Operating CF / share | 4.73 | 4.95 | 4.61 | 4.27 | 5.98 | 5.51 | 6.03 | 6.24 | 6.27 |
| Free cash flow / share | 4.20 | 4.31 | 3.99 | 3.68 | 5.38 | 4.85 | 5.15 | 5.39 | 5.54 |
| Dividends / share | 0.96 | 1.09 | 1.17 | 1.21 | 1.27 | 1.38 | 1.46 | 1.52 | 1.49 |
| Payout ratio | +23.82% | +24.63% | +27.80% | +26.79% | +27.35% | +26.86% | +27.23% | +27.54% | +27.00% |
| Retention ratio | +76.18% | +75.37% | +72.20% | +73.21% | +72.65% | +73.14% | +72.77% | +72.46% | +73.00% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E | 8y CAGR |
|---|---|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||||
| Revenue · YoY | — | +4.98% | -0.39% | +1.98% | +6.95% | +5.77% | +5.16% | +6.20% | -0.78% | +3.69% |
| Gross profit · YoY | — | +1.12% | -4.17% | +1.33% | +5.00% | +8.22% | +6.89% | +4.50% | -3.58% | +2.32% |
| Profit | ||||||||||
| Operating income · YoY | — | +5.02% | -9.40% | +7.55% | +22.03% | -5.31% | +5.18% | +4.51% | +4.31% | +3.88% |
| EBITDA · YoY | — | +5.69% | -6.13% | +4.46% | +18.08% | -2.78% | +8.91% | +3.19% | +1.10% | +3.84% |
| Net income · YoY | — | +7.16% | -7.16% | +5.36% | -0.45% | +10.88% | +3.83% | +4.00% | +0.29% | +2.86% |
| Operating | ||||||||||
| EBIT · YoY | — | +7.02% | -6.82% | +5.80% | +21.09% | -5.24% | +4.40% | +10.80% | -1.67% | +4.08% |
| R&D · YoY | — | — | — | — | — | — | — | — | — | — |
| Per-share | ||||||||||
| EPS · diluted · YoY | — | +8.89% | -4.54% | +7.13% | +0.89% | +25.61% | +8.28% | +10.94% | -8.84% | +5.59% |
| EPS · basic · YoY | — | +8.87% | -4.75% | +7.36% | +0.88% | +25.00% | +8.24% | +12.00% | -9.73% | +5.51% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Leverage | |||||||||
| Total debt | $1.64B | $1.53B | $1.32B | $1.5B | $1.58B | $1.65B | $1.75B | $1.76B | $1.85B |
| Net debt | -$150M | -$657M | -$1.31B | -$728M | -$326M | -$880.15M | -$964.03M | -$1.08B | -$1.01B |
| Net debt / EBITDA | -0.04 | -0.18 | -0.39 | -0.21 | -0.08 | -0.22 | -0.22 | -0.24 | -0.22 |
| Debt / equity | 0.14 | 0.12 | 0.10 | 0.10 | 0.10 | 0.11 | 0.10 | 0.10 | 0.11 |
| Debt / assets | +9.20% | +8.59% | +7.11% | +7.53% | +7.61% | +7.69% | +7.45% | +7.05% | +7.80% |
| Equity / assets | +67.17% | +68.95% | +71.56% | +72.16% | +72.56% | +72.68% | +72.37% | +72.27% | +72.34% |
| Coverage | |||||||||
| EBITDA / interest expense | 378.89 | 189.68 | 82.51 | 65.44 | 112.78 | 83.51 | 86.78 | 84.89 | 84.93 |
| Operating income / interest | 314.00 | 156.21 | 65.59 | 53.56 | 95.38 | 68.78 | 69.02 | 68.39 | 70.60 |
| Interest expense | $9M | $19M | $41M | $54M | $37M | $48.58M | $50.92M | $53.71M | $54.27M |
| Liquidity | |||||||||
| Current ratio | 2.08 | 2.17 | 2.25 | 2.09 | 2.34 | — | — | — | — |
| Quick ratio | 1.78 | 1.88 | 1.95 | 1.76 | 1.74 | — | — | — | — |
| Cash ratio | 0.51 | 0.65 | 0.79 | 0.62 | 0.52 | — | — | — | — |
| Working capital | $3.81B | $3.92B | $4.17B | $3.92B | $4.89B | — | — | — | — |
| Working capital / revenue | +20.60% | +20.17% | +21.56% | +19.86% | +23.18% | — | — | — | — |
Sourced from key_metrics + financial_ratios (loaded by load_fundamentals_extended.py).
Valuation
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| P / E | — | — |
| P / B | — | — |
| EV / EBITDA | — | — |
| EV / Sales | 1.88x | 1.90x |
| Earnings yield | 5.6% | 5.9% |
| FCF yield | 6.5% | 4.8% |
Returns
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Gross margin | — | — |
| Operating margin | — | — |
| Net margin | — | — |
| ROE | 14.9% | 15.5% |
| ROA | 10.8% | 11.2% |
| ROIC | 12.3% | 13.2% |
Leverage & liquidity
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Debt / equity | — | — |
| Net debt / EBITDA | -0.08 | -0.21 |
| Interest coverage | — | — |
| Current ratio | 2.34x | 2.09x |
| Quick ratio | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).