Published on 19 May 2024 on Simply Wall St. · via Yahoo Finance
CGI Inc.'s (TSE:GIB.A) Intrinsic Value Is Potentially 45% Above Its Share Price
Key Insights
Using the 2 Stage Free Cash Flow to Equity, CGI fair value estimate is CA$208CGI is estimated to be 31% undervalued based on current share price of CA$144 Analyst price target for GIB.A is CA$156 which is 25% below our fair value estimate
In this article we are going to estimate the intrinsic value of CGI Inc. (TSE:GIB.A) by taking the expected future cash flows and discounting them to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Don't get put off by the jargon, the math behind it is actually quite straightforward.