Question 1

What is Cognizant's P/FCF ratio?

Accepted Answer

Cognizant (CTSH) P/FCF ratio is 10.3× as of June 5, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month free cash flow, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/FCF ratio calculated?

Accepted Answer

P/FCF = Market Capitalisation ÷ Trailing Twelve-Month (TTM) Free Cash Flow, where Free Cash Flow = Operating Cash Flow − Capital Expenditures. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the P/FCF ratio?

Accepted Answer

The price-to-free-cash-flow (P/FCF) ratio compares a company's market capitalisation to its trailing twelve-month (TTM) free cash flow. It is calculated as market cap ÷ TTM free cash flow, where free cash flow = operating cash flow − capital expenditures. Because FCF cannot be inflated by non-cash accounting items, P/FCF is often considered a cleaner measure of "earnings-power valuation" than P/E — especially for capital-intensive businesses where depreciation diverges from real cash outflows.

Question 4

What is a good P/FCF ratio for Cognizant?

Accepted Answer

Mature companies that consistently convert profit into cash often trade at 15–25× P/FCF; capital-intensive businesses with lumpy capex typically trade lower. Compare against sector peers and against the company's own multi-year average — single-year P/FCF can be distorted by working-capital swings. For Cognizant specifically, the relevant sector benchmark is the current sector median of 21.6×.

Question 5

Is Cognizant's P/FCF ratio high or low?

Accepted Answer

Cognizant's P/FCF ratio of 10.3× is below its own 5-year average of 17.2× and below the sector median of 21.6×. That places the current reading at the 2th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is Cognizant's historical P/FCF ratio range?

Accepted Answer

In the available daily series, Cognizant (CTSH) P/FCF ratio has ranged from a low of 8.9× in 2026 to a high of 114.9× in 2006. The 5-year average is 17.2× and the 5-year median is 17.0×.

Question 7

What was Cognizant's P/FCF ratio in 2025?

Accepted Answer

Cognizant (CTSH) P/FCF ratio at the end of 2025 was 15.4×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month free cash flow figure available at that date.

Question 8

Why does Cognizant's P/FCF ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (free cash flow). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2025	$39.92B	$2.60B	15.4×	-5.5×	Dec 31, 2025
2024	$38.14B	$1.83B	20.9×	+2.1×	Dec 31, 2024
2023	$37.77B	$2.01B	18.8×	+5.7×	Dec 31, 2023
2022	$29.28B	$2.24B	13.1×	-7.9×	Dec 31, 2022
2021	$46.58B	$2.22B	21.0×	+6.0×	Dec 31, 2021
2020	$43.68B	$2.90B	15.1×	-1.0×	Dec 31, 2020
2019	$33.92B	$2.11B	16.1×	-0.5×	Dec 31, 2019
2018	$36.69B	$2.21B	16.6×	-3.1×	Dec 31, 2018
2017	$41.83B	$2.12B	19.7×	-6.0×	Dec 31, 2017
2016	$34.01B	$1.32B	25.7×	+6.3×	Dec 31, 2016
2015	$36.50B	$1.88B	19.4×	-6.0×	Dec 31, 2015
2014	$32.06B	$1.26B	25.4×	-0.9×	Dec 31, 2014
2013	$30.58B	$1.16B	26.3×	-0.2×	Dec 31, 2013
2012	$22.20B	$838.12M	26.5×	-6.6×	Dec 31, 2012
2011	$19.45B	$586.93M	33.1×	-5.3×	Dec 31, 2011
2010	$22.25B	$579.14M	38.4×	+15.9×	Dec 31, 2010
2009	$13.40B	$595.69M	22.5×	+2.3×	Dec 31, 2009
2008	$5.26B	$260.30M	20.2×	-40.2×	Dec 31, 2008
2007	$9.78B	$161.85M	60.4×	-13.5×	Dec 31, 2007
2006	$10.96B	$148.14M	74.0×	-5.2×	Dec 31, 2006
2005	$6.97B	$87.99M	79.2×	+9.4×	Dec 31, 2005
2004	$5.64B	$80.75M	69.8×	+11.3×	Dec 31, 2004
2003	$2.92B	$49.87M	58.6×	+16.3×	Dec 31, 2003
2002	$1.45B	$34.41M	42.3×	-4.1×	Dec 31, 2002
2001	$794.74M	$17.13M	46.4×	—	Dec 31, 2001


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P/FCF Ratio for Cognizant (CTSH)

P/FCF Ratio daily chart for Cognizant (CTSH)

Historical P/FCF Ratio for Cognizant (CTSH) from 2001 to 2025

About P/FCF Ratio at Cognizant (CTSH)

Cognizant P/FCF Ratio by Year

Cognizant P/FCF Ratio 2025: 15.4×

Cognizant P/FCF Ratio 2024: 20.9×

Cognizant P/FCF Ratio 2023: 18.8×

Cognizant P/FCF Ratio 2022: 13.1×

Cognizant P/FCF Ratio 2021: 21.0×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

Cognizant (CTSH) Key Financials

P/FCF Ratio daily chart for Cognizant (CTSH)

Historical P/FCF Ratio for Cognizant (CTSH) from 2001 to 2025

About P/FCF Ratio at Cognizant (CTSH)

Cognizant P/FCF Ratio by Year

Cognizant P/FCF Ratio 2025: 15.4×

Cognizant P/FCF Ratio 2024: 20.9×

Cognizant P/FCF Ratio 2023: 18.8×

Cognizant P/FCF Ratio 2022: 13.1×

Cognizant P/FCF Ratio 2021: 21.0×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

+What is Cognizant's P/FCF ratio?

+How is the P/FCF ratio calculated?

+What is the P/FCF ratio?

+What is a good P/FCF ratio for Cognizant?

+Is Cognizant's P/FCF ratio high or low?

+What is Cognizant's historical P/FCF ratio range?

+What was Cognizant's P/FCF ratio in 2025?

+Why does Cognizant's P/FCF ratio change over time?

Cognizant (CTSH) Key Financials