Is Cognizant Technology Solutions Corp. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Cognizant Technology Solutions Corp. has moved from attractive to very attractive. Based on the current metrics, the company appears undervalued. Key ratios include a P/E ratio of 16, an EV to EBITDA of 10.58, and a Price to Book Value of 2.66, which suggest that the stock is trading at a reasonable valuation compared to its earnings and book value.
In comparison to peers, Cognizant's P/E ratio of 13.98 is lower than Block, Inc.'s 12.44 and significantly lower than Broadridge Financial Solutions, Inc.'s 46.07, indicating a favorable position within its industry. Additionally, Cognizant's PEG ratio of 2.07 is more attractive than Broadridge's 3.12, suggesting better growth prospects relative to its valuation. Despite recent underperformance, with a YTD return of -11.37% compared to the S&P 500's 13.31%, the valuation metrics indicate that Cognizant may present a buying opportunity for investors.