Munger Mode rating: 2 out of 5 — Sell. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We'll save you the suspense, because the conclusion here is more instructive than the arithmetic. Cognizant is a fair business trading at a genuinely cheap price — roughly 9.4 times this year's guided adjusted earnings, with a 10% free cash flow yield and a management team currently retiring shares hand over fist at prices well below any sensible estimate of intrinsic value. Forty years ago, one of us would have bought this with both hands and called it a cigar butt with three puffs left instead of one. But the other one of us spent decades beating a simple lesson into this partnership: a fair business at a wonderful price is still a fair business, and time is the enemy of the fair business.
Recent filings analysed: 8-K (2026-07-29), 10-Q (2026-07-29), 8-K (2026-07-10), 8-K (2026-06-03).
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