CAE Inc. specializes in training for the civil aviation, defence and security, and healthcare markets. Also, the company designs, manufactures, and supplies simulation equipment worldwide. The company was formerly known as CAE Industries Ltd. and changed its name to CAE Inc. in June 1993. CAE Inc. was founded in 1947 and is based in Saint-Laurent, Canada.
CAE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Cae Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Cae Inc ranked in the 44th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 27.17%. As for the metrics that stood out in our discounted cash flow analysis of Cae Inc, consider:
Cae Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 10.92% of tickers in our DCF set.
Relative to other stocks in its sector (Industrials), Cae Inc has a reliance on debt greater than 61.74% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ETN, JCI, ATI, HIL, and MIDD can be thought of as valuation peers to CAE, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
(NYSE: CAE) (TSX: CAE) – CAE today announced that the second edition of the CAE OneWorld virtual conference and tradeshow will start on February 9, 2021. CAE OneWorld 2021 is free to all attendees who register (https://www.caeoneworld2021.com/) and will remain online for one month.
About seven months ago, I recommended purchasing CAE (CAE) as an ideal investment for those who wanted to profit from the recovery of the airline industry from the pandemic. As I analyzed back then, airline stocks are much riskier than CAE due to their excessive debt load and the severe...
Aristofanis Papadatos on Seeking Alpha | December 29, 2020
(NYSE: CAE) (TSX: CAE) – CAE announced today the acquisition of Merlot Aero Limited (Merlot), a leading civil aviation crew management and optimization software company for US$25 million, plus additional consideration of up to US$10 million in the form of an earn-out. The acquisition marks CAE's expansion into digital flight crew management and represents an important milestone in the Company's goal to unify the digital flight operations ecosystem.