Is Cognizant Technology Solutions Corporation (CTSH) Undervalued?
Based on the current stock price of $85.57 and a P/E ratio of 19.81,Cognizant Technology Solutions Corporation has a PEG ratio of 1.87.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 1.87, CTSH appears to be fairly valued relative to its growth rate of 10.59%.
Based on a PEG ratio of 1.65 (adjusted for dividends).
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How we analyzed CTSH
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 19.81and dividing it by the annual growth rate of 10.59%.
PEG = 19.81 (P/E) ÷ 10.59 (Growth) = 1.87
Frequently Asked Questions about CTSH
What is the current PEG Ratio for Cognizant Technology Solutions Corporation (CTSH)?+
The current PEG Ratio for Cognizant Technology Solutions Corporation is 1.87. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is CTSH stock undervalued right now?+
Based on the PEG ratio of 1.87, Cognizant Technology Solutions Corporation appears to be fairly valued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for CTSH?+
The PEGY ratio for Cognizant Technology Solutions Corporation is 1.65. This metric accounts for dividend yield (1.45%), providing a more complete valuation picture.