# Is Cognizant Technology Solutions Corp Class A (CTSH) overvalued?

Source: https://www.equity-rank.com/is-it-overvalued/CTSH

**On Equity Rank's model estimate, CTSH trades close to its fair value (0% below it).** Cognizant Technology Solutions Corp Class A (CTSH) last closed at $64.72; the multi-method model fair value is $64.85.

| Price | Model fair value | Price vs model |
| --- | --- | --- |
| $64.72 | $64.85 | 0% below |

## What the answer rests on

- 8 of 12 valuation methods put CTSH's value above its price and 4 put it below, so the methods disagree.
- To justify today's price, CTSH's free cash flow would need to grow about -2.7% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 5.1% a year.
- CTSH trades at 12.0 times its last year's earnings, against a median of 20.8 for 30 profitable IT Services companies.
- Over the past year the price sat below the model fair value on 69% of trading days. The gap ranged from 31% below to 13% above the model fair value.

## Read this before relying on it

The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; [the live record](https://www.equity-rank.com/track-record) shows every result, misses included.

Data as of Fri, Nov 6, 2026. Informational only — not investment advice.

[Every valuation method behind CTSH's fair value](https://www.equity-rank.com/stocks/CTSH) · [What prices assume](https://www.equity-rank.com/priced-in) · [Other companies](https://www.equity-rank.com/is-it-overvalued)

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Fair value is a model estimate under stated assumptions — not a price target, not a prediction, and not a recommendation. This page is research information, not investment advice. Equity Rank is not a registered investment adviser.
