Cognizant Technology Solutions Corp (CTSH) is undervalued and International Business Machines Corp (IBM) is fairly valued.
Against our estimates of intrinsic value, CTSH trades at the wider discount: a margin of safety of +44%, against -5% for IBM.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.3% (average of 3 methods) values the shares at $105.26; the price of $58.68 is 44% below that value, and 75% of that value comes from beyond year five.
Leak Score 92/100 on 10 of 12 signals
Discounting its cash flows at 8.4% (average of 3 methods) values the shares at $220.67; the price of $231.38 is 5% above that value, and 78% of that value comes from beyond year five.
Leak Score 65/100 on 9 of 12 signals
| Metric | CTSH | IBM |
|---|---|---|
| Verdict | Undervalued | Fairly valued |
| Price | $58.68 | $231.38 |
| Intrinsic value | $105.26 | $220.67 |
| Margin of safety | +44% | -5% |
| Leak Score | 92/100 (10/12) | 65/100 (9/12) |
| Market cap | $26.4B | $218.0B |
| Revenue growth, 5 years | 4.9% | 4.1% |
| Operating margin | 16.1% | 20.9% |
| Net margin | 10.3% | 15.5% |
| Return on equity | 14.9% | 34.5% |
| Debt to equity | 0.14 | 1.89 |
| P/E | 12.6x | 20.5x |
| Forward P/E | 9.3x | 17.6x |
| P/B | 1.8x | 6.3x |
| Dividend yield | 2.2% | 2.9% |