CAE Valuation

Is CAE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CAE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CAE (CA$25.56) is trading below our estimate of fair value (CA$32.62)

Significantly Below Fair Value: CAE is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for CAE?

Other financial metrics that can be useful for relative valuation.

CAE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.5x
Enterprise Value/EBITDA14.3x
PEG Ratio1.2x

Price to Earnings Ratio vs Peers

How does CAE's PE Ratio compare to its peers?

The above table shows the PE ratio for CAE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average30.3x
BBD.B Bombardier
8.8x11.4%CA$5.6b
MDA MDA
35.6x33.7%CA$1.7b
HRX Héroux-Devtek
27.6x27.7%CA$656.6m
MAL Magellan Aerospace
49x64.9%CA$456.8m
CAE CAE
29.6x25.6%CA$8.3b

Price-To-Earnings vs Peers: CAE is good value based on its Price-To-Earnings Ratio (29.6x) compared to the peer average (30.5x).


Price to Earnings Ratio vs Industry

How does CAE's PE Ratio compare vs other companies in the North American Aerospace & Defense Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a28.7%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a28.7%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: CAE is good value based on its Price-To-Earnings Ratio (29.6x) compared to the North American Aerospace & Defense industry average (30.3x).


Price to Earnings Ratio vs Fair Ratio

What is CAE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CAE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio29.6x
Fair PE Ratio29.7x

Price-To-Earnings vs Fair Ratio: CAE is good value based on its Price-To-Earnings Ratio (29.6x) compared to the estimated Fair Price-To-Earnings Ratio (29.7x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CAE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$25.56
CA$32.83
+28.5%
10.5%CA$40.00CA$26.00n/a12
Apr ’25CA$27.46
CA$32.58
+18.7%
8.6%CA$37.00CA$26.00n/a12
Mar ’25CA$25.61
CA$32.58
+27.2%
8.6%CA$37.00CA$26.00n/a12
Feb ’25CA$26.78
CA$35.17
+31.3%
9.6%CA$39.00CA$26.00n/a12
Jan ’25CA$28.60
CA$35.63
+24.6%
8.9%CA$39.00CA$26.00n/a12
Dec ’24CA$27.57
CA$35.46
+28.6%
8.7%CA$38.00CA$26.00n/a12
Nov ’24CA$28.90
CA$37.75
+30.6%
2.9%CA$40.00CA$36.00n/a12
Oct ’24CA$31.71
CA$37.42
+18.0%
2.8%CA$39.00CA$35.00n/a12
Sep ’24CA$32.94
CA$37.42
+13.6%
2.8%CA$39.00CA$35.00n/a12
Aug ’24CA$30.18
CA$36.09
+19.6%
4.6%CA$38.00CA$32.00n/a11
Jul ’24CA$29.65
CA$35.75
+20.6%
4.9%CA$38.00CA$32.00n/a12
Jun ’24CA$27.75
CA$35.75
+28.8%
4.9%CA$38.00CA$32.00n/a12
May ’24CA$30.54
CA$36.33
+19.0%
3.8%CA$38.00CA$33.00n/a12
Apr ’24CA$30.56
CA$36.17
+18.3%
3.7%CA$38.00CA$33.00CA$27.4612
Mar ’24CA$30.79
CA$36.17
+17.5%
3.7%CA$38.00CA$33.00CA$25.6112
Feb ’24CA$30.15
CA$33.67
+11.7%
4.9%CA$36.00CA$30.00CA$26.7812
Jan ’24CA$26.19
CA$33.75
+28.9%
4.9%CA$36.00CA$30.00CA$28.6012
Dec ’23CA$29.09
CA$33.67
+15.7%
4.6%CA$36.00CA$30.00CA$27.5712
Nov ’23CA$25.22
CA$32.50
+28.9%
9.3%CA$37.00CA$26.00CA$28.9012
Oct ’23CA$21.19
CA$34.96
+65.0%
9.0%CA$39.00CA$28.00CA$31.7112
Sep ’23CA$23.26
CA$35.79
+53.9%
6.8%CA$39.00CA$30.00CA$32.9412
Aug ’23CA$33.88
CA$40.29
+18.9%
5.4%CA$44.00CA$36.00CA$30.1812
Jul ’23CA$31.72
CA$40.29
+27.0%
5.4%CA$44.00CA$36.00CA$29.6512
Jun ’23CA$34.02
CA$39.45
+16.0%
9.3%CA$45.00CA$33.00CA$27.7511
May ’23CA$30.55
CA$39.45
+29.1%
9.3%CA$45.00CA$33.00CA$30.5411
Apr ’23CA$32.81
CA$39.64
+20.8%
9.6%CA$45.00CA$33.00CA$30.5611

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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