CAE Inc.

NYSE:CAE Stock Report

Market Cap: US$7.7b

CAE Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales 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.

Discounted Cash Flow
Simply Wall St
US$36.16
Fair Value
32.8% undervalued intrinsic discount
13
Number of Analysts

Below Fair Value: CAE ($24.31) is trading below our estimate of fair value ($36.16)

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?

Key metric: As CAE is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for CAE. This is calculated by dividing CAE's market cap by their current revenue.
What is CAE's PS Ratio?
PS Ratio2.5x
SalesCA$4.43b
Market CapCA$11.11b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for CAE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average6x
HII Huntington Ingalls Industries
0.7x4.7%US$7.9b
SARO StandardAero
1.7x10.0%US$8.7b
MOG.A Moog
1.8x4.4%US$6.6b
LOAR Loar Holdings
19.7x15.2%US$7.5b
CAE CAE
2.5x6.3%US$11.1b

Price-To-Sales vs Peers: CAE is good value based on its Price-To-Sales Ratio (2.5x) compared to the peer average (6x).

Price to Sales Ratio vs Industry

How does CAE's PS Ratio compare vs other companies in the US Aerospace & Defense Industry?

9 CompaniesPrice / SalesEstimated GrowthMarket Cap
HII Huntington Ingalls Industries
0.7x4.7%US$7.93b
SPR Spirit AeroSystems Holdings
0.6x12.2%US$4.01b
VVX V2X
0.4x4.8%US$1.68b
LLAP Terran Orbital
0.4x29.5%US$51.22m
CAE 2.5xIndustry Avg. 2.6xNo. of Companies11PS02.85.68.411.214+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: CAE is good value based on its Price-To-Sales Ratio (2.5x) compared to the US Aerospace & Defense industry average (2.6x).

Price to Sales Ratio vs Fair Ratio

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

CAE PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.5x
Fair PS Ratio1.5x

Price-To-Sales vs Fair Ratio: CAE is expensive based on its Price-To-Sales Ratio (2.5x) compared to the estimated Fair Price-To-Sales Ratio (1.5x).

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
CurrentUS$24.31
US$23.71
-2.5%
15.0%US$28.50US$17.38n/a13
Jan ’26US$25.38
US$22.94
-9.6%
14.4%US$27.83US$16.00n/a13
Dec ’25US$23.47
US$22.42
-4.5%
13.9%US$26.46US$15.02n/a13
Nov ’25US$17.95
US$20.11
+12.0%
15.3%US$24.42US$13.65n/a13
Oct ’25US$18.62
US$20.77
+11.6%
16.9%US$26.71US$13.35n/a13
Sep ’25US$17.88
US$20.77
+16.2%
16.9%US$26.71US$13.35n/a13
Aug ’25US$17.06
US$20.85
+22.2%
15.5%US$25.99US$14.44n/a13
Jul ’25US$18.50
US$21.48
+16.1%
15.6%US$26.31US$14.62n/a13
Jun ’25US$18.78
US$22.00
+17.1%
12.8%US$26.25US$15.31n/a12
May ’25US$19.73
US$23.76
+20.4%
10.5%US$28.95US$18.82n/a12
Apr ’25US$20.22
US$24.15
+19.4%
8.6%US$27.43US$19.27n/a12
Mar ’25US$18.89
US$24.15
+27.9%
8.6%US$27.43US$19.27n/a12
Feb ’25US$20.01
US$26.09
+30.4%
9.6%US$28.93US$19.29n/a12
Jan ’25US$21.59
US$26.65
+23.4%
8.9%US$29.17US$19.45US$25.3812
Dec ’24US$20.43
US$26.08
+27.7%
8.7%US$27.95US$19.13US$23.4712
Nov ’24US$20.84
US$27.49
+31.9%
2.9%US$29.13US$26.22US$17.9512
Oct ’24US$23.35
US$27.72
+18.7%
2.8%US$28.89US$25.93US$18.6212
Sep ’24US$24.20
US$27.72
+14.6%
2.8%US$28.89US$25.93US$17.8812
Aug ’24US$22.73
US$27.40
+20.6%
4.6%US$28.85US$24.30US$17.0611
Jul ’24US$22.38
US$26.58
+18.8%
4.9%US$28.25US$23.79US$18.5012
Jun ’24US$20.64
US$26.58
+28.8%
4.9%US$28.25US$23.79US$18.7812
May ’24US$22.55
US$26.96
+19.5%
3.8%US$28.19US$24.48US$19.7312
Apr ’24US$22.63
US$26.71
+18.0%
3.7%US$28.06US$24.37US$20.2212
Mar ’24US$22.68
US$26.71
+17.7%
3.7%US$28.06US$24.37US$18.8912
Feb ’24US$22.71
US$25.15
+10.7%
4.9%US$26.89US$22.41US$20.0112
Jan ’24US$19.34
US$24.77
+28.1%
4.9%US$26.42US$22.02US$21.5912
Analyst Price Target
Consensus Narrative from 13 Analysts
US$23.78
Fair Value
2.2% overvalued intrinsic discount
13
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/27 08:58
End of Day Share Price 2025/01/24 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

CAE Inc. is covered by 30 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Will ChienAccountability Research Corporation
Christopher MurrayATB Capital Markets
Fadi ChamounBMO Capital Markets Equity Research