Assessing Cognizant Technology Solutions Inc’s Market Performance: A PE Ratio Comparison

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Cognizant Technology Solutions ($NASDAQ:CTSH) Inc. is a leading global provider of technology and services solutions. The company specializes in providing integrated business solutions to its clients in various industries worldwide. It has been consistently ranked amongst the top companies in the world in terms of market performance. In order to assess the company’s market performance, one of the most widely used tools is the Price-to-Earnings (P/E) ratio analysis. The P/E ratio is calculated by dividing the current price of a stock by its earnings per share (EPS).

The higher the P/E, the more expensive the stock is relative to its earnings. By comparing the P/E ratios of Cognizant Technology Solutions Inc. with that of its competitors, investors can get a better understanding of the company’s current market performance. The P/E ratio comparison helps investors identify whether the current stock price is overvalued or undervalued relative to its competitors. This comparison enables them to make an informed decision on whether to invest, hold, or sell their holdings in Cognizant Technology Solutions Inc. By analyzing the P/E ratios of Cognizant Technology Solutions Inc., investors can get an idea of how the company’s market performance is doing in comparison to its peers.

Stock Price

Since its inception, COGNIZANT TECHNOLOGY SOLUTIONS has been a leader in the technology industry, delivering innovative solutions to its customers. On Tuesday, COGNIZANT TECHNOLOGY SOLUTIONS stock opened at $66.8 and closed at $67.4, up by 2.6% from previous closing price of 65.7. This increase in stock value is a testament to the company’s success and market performance. When assessing the company’s performance, a useful metric to consider is its price-earnings (P/E) ratio. This ratio measures the company’s current share price relative to its earnings per share.

By doing this, investors can better understand how the company’s stock is valued. This indicates that the company’s stock is actively being traded and that investors are bullish on its future prospects. In conclusion, the increase in COGNIZANT TECHNOLOGY SOLUTIONS’ stock value paired with its higher-than-average P/E ratio signals a positive outlook for the company’s market performance. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for CTSH. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for CTSH. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for CTSH. More…

Key Ratios Snapshot

Some of the financial key ratios for CTSH are shown below. More…

Analysis

At GoodWhale, we analyze the financials of COGNIZANT TECHNOLOGY SOLUTIONS and have compiled a report on its performance. According to our Star Chart, COGNIZANT TECHNOLOGY SOLUTIONS is strong in dividend, profitability, and medium in asset while being classified as ‘cow’, a type of company with the track record of paying out consistent and sustainable dividends. This means that it is likely to be an attractive option for investors looking for reliable and steady returns. Moreover, our health score for COGNIZANT TECHNOLOGY SOLUTIONS comes in at 10/10, indicating that the company is in a strong financial position with regards to its cashflows and debt. This means that it is more than capable of paying off debt and funding future operations. More…

Peers

Cognizant Technology Solutions Corp is a leading provider of information technology, consulting, and business process outsourcing services. It has a strong presence in India, the United States, and Europe. The company operates in four segments: Banking and Financial Services, Healthcare, Manufacturing, and Retail, Consumer Goods, and Logistics. Cognizant’s competitors include Accenture PLC, Genpact Ltd, Shunliban Information Service Co Ltd, and others.

– Accenture PLC ($NYSE:ACN)

Accenture PLC is a professional services company that provides consulting, technology, and outsourcing services. It has a market cap of 166.38B as of 2022 and a Return on Equity of 26.56%. The company operates in more than 200 countries and employs more than 373,000 people.

– Genpact Ltd ($NYSE:G)

Genpact is a global professional services firm that offers a range of services in the areas of consulting, digital transformation, technology, and operations. The company has a market cap of $8.29 billion and a return on equity of 17.54%. Genpact has a strong focus on digital transformation and offers a range of services that helps businesses to digitally transform their operations. The company has a strong client base and a strong track record in delivering results.

– Shunliban Information Service Co Ltd ($SZSE:000606)

Shunliban Information Service Co Ltd is a Chinese company that provides information services. It has a market cap of 1.34 billion as of 2022 and a return on equity of 130.37%. The company offers services such as data analysis, information management, and online marketing. It also provides software development and consultation services.

Summary

Cognizant Technology Solutions Inc. is an international provider of information technology, consulting and business process services. Investing analysis of the company can be done using the price-earnings (PE) ratio comparison. This is done by comparing Cognizant’s current PE ratio to the average PE of competitors and the broader market.

The results suggest that the company is undervalued compared to its peers and is trading below the market average PE ratio. As such, Cognizant may be a good investment opportunity for value investors looking for a long-term investment in the sector.