CTSH PEG Ratio Analysis
Updated 3033h ago·SEC filings & market data
Key Takeaway
# PEG Ratio Analysis: CTSH CTSH's PEG ratio of 5.71x means investors are paying $5.71 for every dollar of annual earnings growth, indicating the stock is priced at a premium relative to its growth rate.
Sector Performance
92th percentileCTSH
5.71x
Sector Median
0.77x
Sector Avg
2.65x
Deep Analysis
# PEG Ratio Analysis: CTSH
CTSH's PEG ratio of 5.71x means investors are paying $5.71 for every dollar of annual earnings growth, indicating the stock is priced at a premium relative to its growth rate. This valuation is substantially higher than the sector median of 1.00x, placing the stock at the 85th percentile among peers—meaning only 15% of comparable companies trade at higher PEG multiples. The metric has remained flat at 5.71x over the last two quarters, showing no improvement in the valuation-to-growth relationship. For investors, this elevated PEG ratio suggests limited margin of safety and implies the market has already priced in strong future earnings expansion, leaving little room for disappointment in execution.
Frequently Asked Questions
What does the PEG Ratio tell investors about CTSH?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
Who are CTSH's closest peers by PEG Ratio?
The closest peers by PEG Ratio include: FORM (0.49x), HII (0.48x), CPRI (0.47x), CBOE (0.46x), CELH (0.46x).
Learn More About PEG Ratio
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
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5.71x
Sector Median
0.77x
Sector Avg
2.65x
How CTSH's PEG Ratio compares to sector peers.
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