Cognizant Technology Solutions
Financial ratios & Valuation

Forward Multiples (2025 – 2027)

202520262027
Price/Earnings ratio
14.2012.9411.89
Price/Sales ratio
1.851.721.60
Earnings per Share (EPS)
$4.98$5.47$5.95

Historical Multiples (2014 – 2023)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM Median
Valuation Ratios
Price/Earnings ratio
22.2522.5121.8928.0017.5818.8231.7921.8712.9317.9417.4418.82
Price/Sales ratio
3.122.942.522.842.292.062.652.521.521.972.022.06
Price/Book Value ratio
4.133.943.173.943.233.144.083.892.402.882.713.14
Price/Cash Flow ratio
21.7416.9720.9817.4914.2513.8713.4118.7311.5316.3720.2314.25
Price/Free Cash Flow ratio
25.3919.4425.7419.8316.6716.4515.2521.0913.2418.9423.8116.67
Price/Earnings Growth ratio
1.321.77-5.31-35.840.41-2.19-1.450.381.45-3.774.650.41
Dividend Yield
N/AN/AN/A0.62%1.26%1.30%1.08%1.08%1.90%1.54%1.51%1.26%
Profitability Indicator Ratios
Gross Profit Margin
40.16%40.07%39.88%38.20%38.98%36.63%35.91%37.29%35.92%34.56%31.70%36.63%
Operating Profit Margin
18.36%17.25%16.97%16.75%17.37%14.61%12.69%15.26%15.27%13.89%15.25%14.61%
Pretax Profit Margin
18.74%17.42%17.47%17.92%17.34%15.15%12.58%15.27%15.52%14.40%15.18%15.15%
Net Profit Margin
14.02%13.07%11.51%10.15%13.02%10.97%8.35%11.54%11.78%10.98%11.60%11.60%
Effective Tax Rate
25.19%24.95%34.15%43.42%24.95%25.28%33.58%24.51%24.20%23.96%24.05%25.28%
Return on Assets
12.28%12.42%10.88%9.88%13.20%11.36%8.22%11.97%12.82%11.50%11.16%11.36%
Return On Equity
18.59%17.49%14.47%14.09%18.39%16.71%12.84%17.82%18.60%16.07%16.35%16.71%
Return on Capital Employed
20.65%20.69%19.32%20.03%21.32%18.55%15.79%19.73%20.46%17.74%17.65%18.55%
Liquidity Ratios
Current Ratio
2.602.913.553.203.122.551.93N/AN/AN/A2.222.55
Quick Ratio
2.472.913.553.203.122.551.932.082.172.252.222.55
Cash ratio
0.770.780.840.670.410.880.750.500.650.780.590.41
Days of Sales Outstanding
81.5677.0878.6179.4072.2070.8167.6670.1571.3172.5979.0872.20
Days of Inventory outstanding
19.59N/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Operating Cycle
101.1577.0878.6179.4072.2070.8167.6670.1571.3172.5979.0872.20
Days of Payables Outstanding
8.658.097.878.377.978.2013.3011.3510.559.718.367.97
Cash Conversion Cycle
92.4968.9870.7471.0364.2362.6054.3558.7960.7662.8770.7164.23
Debt Ratios
Debt Ratio
0.130.090.060.050.040.040.040.030.030.040.060.04
Debt Equity Ratio
0.210.130.080.080.060.060.060.050.050.050.090.06
Long-term Debt to Capitalization
0.100.080.060.060.060.050.050.040.040.040.070.06
Total Debt to Capitalization
0.170.120.070.070.060.060.060.050.040.050.080.06
Interest Coverage Ratio
763.72121.01120.47107.86103.74102.6997.04N/AN/AN/A64.36102.69
Cash Flow to Debt Ratio
0.891.671.842.753.473.384.703.753.972.941.373.38
Company Equity Multiplier
1.511.401.321.421.391.471.561.481.451.391.391.39
Cash Flow Ratios
Operating Cash Flow / Sales Ratio
0.140.170.120.160.160.140.190.130.130.120.090.14
Free Cash Flow / Operating Cash Flow Ratio
0.850.870.810.880.850.840.870.880.870.860.840.84
Cash Flow Coverage Ratio
0.891.671.842.753.473.384.703.753.972.941.373.38
Short Term Coverage Ratio
2.105.3020.0113.7528865.7686.8165.6532112.528.6265.76
Dividend Payout Ratio
N/AN/AN/A17.61%22.27%24.59%34.48%23.81%24.62%27.79%26.46%22.27%