CGI Services provides information technology (IT) consulting, systems integration, IT outsourcing and business solutions. The company was founded in 1976 and is based in Montréal, Canada.
GIB Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Cgi Inc. To summarize, we found that Cgi Inc ranked in the 41th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 24%. In terms of the factors that were most noteworthy in this DCF analysis for GIB, they are:
As a business, GIB is generating more cash flow than 85.28% of positive cash flow stocks in the Technology.
The business' balance sheet reveals debt to be 9% of the company's capital (with equity being the remaining amount). Approximately merely 21.69% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
GIB's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 37.77% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ACIW, CTXS, SMCI, UI, and CDK can be thought of as valuation peers to GIB, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Both CGI Group and BlackBerry could deliver impressively returns in the long term, given their improving growth prospects and attractive valuations. The post 2 Cheap TSX Tech Stocks to Buy Right Now appeared first on The Motley Fool Canada .