CGI Inc.

TSX:GIB.A Stock Report

Market Cap: CA$34.6b

CGI Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 GIB.A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GIB.A (CA$153.62) is trading above our estimate of fair value (CA$144.03)

Significantly Below Fair Value: GIB.A is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GIB.A?

Key metric: As GIB.A is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for GIB.A. This is calculated by dividing GIB.A's market cap by their current earnings.
What is GIB.A's PE Ratio?
PE Ratio20.5x
EarningsCA$1.69b
Market CapCA$34.55b

Price to Earnings Ratio vs Peers

How does GIB.A's PE Ratio compare to its peers?

The above table shows the PE ratio for GIB.A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average73.6x
DSG Descartes Systems Group
76.3x14.3%CA$13.6b
CSU Constellation Software
116.3x26.8%CA$94.0b
TOI Topicus.com
80xn/aCA$9.7b
6701 NEC
21.7x12.7%JP¥3.3t
GIB.A CGI
20.5x7.2%CA$34.6b

Price-To-Earnings vs Peers: GIB.A is good value based on its Price-To-Earnings Ratio (20.5x) compared to the peer average (73.6x).

Price to Earnings Ratio vs Industry

How does GIB.A's PE Ratio compare vs other companies in the North American IT Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GIB.A 20.5xIndustry Avg. 39.6xNo. of Companies6PE020406080100+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GIB.A is good value based on its Price-To-Earnings Ratio (20.5x) compared to the North American IT industry average (40.9x).

Price to Earnings Ratio vs Fair Ratio

What is GIB.A'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.

GIB.A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.5x
Fair PE Ratio56x

Price-To-Earnings vs Fair Ratio: GIB.A is good value based on its Price-To-Earnings Ratio (20.5x) compared to the estimated Fair Price-To-Earnings Ratio (56x).

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 GIB.A forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$153.62
CA$170.43
+10.9%
9.3%CA$185.00CA$131.00n/a14
Nov ’25CA$155.71
CA$166.86
+7.2%
10.2%CA$185.00CA$131.00n/a14
Oct ’25CA$154.27
CA$164.93
+6.9%
10.2%CA$185.00CA$131.00n/a14
Sep ’25CA$151.83
CA$164.93
+8.6%
10.2%CA$185.00CA$131.00n/a14
Aug ’25CA$154.65
CA$164.57
+6.4%
10.2%CA$185.00CA$131.00n/a14
Jul ’25CA$136.55
CA$156.00
+14.2%
9.2%CA$175.00CA$127.00n/a14
Jun ’25CA$134.59
CA$156.47
+16.3%
9.1%CA$175.00CA$127.00n/a15
May ’25CA$136.70
CA$157.73
+15.4%
9.4%CA$175.00CA$126.00n/a15
Apr ’25CA$149.18
CA$159.00
+6.6%
9.7%CA$175.00CA$126.00n/a15
Mar ’25CA$157.36
CA$159.67
+1.5%
9.8%CA$175.00CA$126.00n/a15
Feb ’25CA$154.16
CA$159.67
+3.6%
9.8%CA$175.00CA$126.00n/a15
Jan ’25CA$141.95
CA$150.27
+5.9%
8.4%CA$175.00CA$122.00n/a15
Dec ’24CA$138.96
CA$149.27
+7.4%
8.4%CA$175.00CA$122.00n/a15
Nov ’24CA$134.50
CA$149.53
+11.2%
8.3%CA$175.00CA$122.00CA$155.7115
Oct ’24CA$133.88
CA$149.67
+11.8%
8.4%CA$175.00CA$122.00CA$154.2715
Sep ’24CA$141.40
CA$149.67
+5.8%
8.4%CA$175.00CA$122.00CA$151.8315
Aug ’24CA$134.35
CA$149.71
+11.4%
8.6%CA$175.00CA$122.00CA$154.6514
Jul ’24CA$139.70
CA$149.36
+6.9%
7.7%CA$160.00CA$122.00CA$136.5514
Jun ’24CA$139.63
CA$149.36
+7.0%
7.7%CA$160.00CA$122.00CA$134.5914
May ’24CA$138.53
CA$148.07
+6.9%
8.0%CA$160.00CA$122.00CA$136.7014
Apr ’24CA$130.25
CA$135.21
+3.8%
7.5%CA$146.00CA$109.00CA$149.1814
Mar ’24CA$122.56
CA$135.21
+10.3%
7.5%CA$146.00CA$109.00CA$157.3614
Feb ’24CA$118.71
CA$133.29
+12.3%
8.1%CA$146.00CA$106.00CA$154.1614
Jan ’24CA$116.71
CA$129.13
+10.6%
7.1%CA$145.00CA$106.00CA$141.9515
Dec ’23CA$119.23
CA$127.73
+7.1%
6.0%CA$135.00CA$106.00CA$138.9615
Nov ’23CA$109.42
CA$126.27
+15.4%
6.5%CA$135.00CA$106.00CA$134.5015

Analyst Forecast: Target price is less than 20% higher than the current share price.

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