Is Cognizant Technology Solutions Corp. overvalued or undervalued?

As of 24 October 2025, the valuation grade for Cognizant Technology Solutions Corp. has moved from attractive to very attractive, indicating a positive shift in its valuation outlook. The company appears undervalued, supported by a P/E ratio of 16, an EV to EBITDA ratio of 10.58, and a Price to Book Value of 2.66. In comparison, its peer Block, Inc. has a P/E ratio of 12.44, while Broadridge Financial Solutions, Inc. shows a significantly higher P/E of 46.07, highlighting that Cognizant may offer better value relative to its peers.
Despite recent stock performance showing a YTD return of -11.76% compared to the S&P 500's 15.47%, the long-term outlook remains promising, with a 3-year return of 11.69% versus the S&P 500's 78.85%. This suggests that while short-term performance has lagged, the company's valuation metrics indicate potential for future growth and recovery.