CTSHNEUTRAL

CTSH EV/EBITDA Analysis

5.4x

Updated 921h ago·SEC filings & market data

Key Takeaway

CTSH's current EV/EBITDA of 5.4x means investors are paying $5.40 for each dollar of the company's operating earnings (before interest, taxes, depreciation, and amortization) — a low valuation ratio often used to gauge whether a stock is cheap or expensive.

Sector Performance

13th percentile

CTSH

5.4x

Sector Median

13.6x

Sector Avg

-30.9x

Prior Period

5.3x(Jul 2026)

↓ Declining

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Deep Analysis

This is well below the sector median of 13.5x, placing CTSH in the 13th percentile among its sector peers, indicating it trades at a large discount relative to the typical company. Over the last 8 quarters the metric has been stable, with a quarter-over-quarter increase of +2.1% and year-over-year change not available. The combination of a very low EV/EBITDA level and a stable trend suggests a limited downside risk from valuation compression, but also no clear catalyst for a re-rating higher. This low, steady valuation supports the overall NEUTRAL verdict — the stock appears cheap but lacks the upward momentum or sector tailwind to justify a more bullish stance.

Frequently Asked Questions

What does the EV/EBITDA tell investors about CTSH?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are CTSH's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: SMTC (76.6x), SHOP (80.2x), OKTA (83.5x), TEAM (101.4x), STEM (102.7x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.