CAE Inc
NYSE:CAE
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EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (23.8), the stock would be worth $28.2 (11% upside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 21.5 | $25.46 |
0%
|
| 3-Year Average | 23.8 | $28.2 |
+11%
|
| 5-Year Average | 25.5 | $30.17 |
+18%
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| Industry Average | 16.5 | $19.57 |
-23%
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| Country Average | 14.5 | $17.11 |
-33%
|
Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
|
$14.4B
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/ |
Jan 2026
CA$637m
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= |
|
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$14.4B
|
/ |
Mar 2026
CA$740m
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= |
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$14.4B
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/ |
Mar 2027
CA$768.5m
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= |
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$14.4B
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/ |
Mar 2028
CA$870.9m
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= |
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$14.4B
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/ |
Mar 2029
CA$860.3m
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= |
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Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| CA |
|
CAE Inc
NYSE:CAE
|
11.2B USD | 21.5 | 30.2 | |
| US |
|
RTX Corp
LSE:0R2N
|
245.4B USD | 29.2 | 36.2 | |
| US |
|
Raytheon Technologies Corp
NYSE:RTX
|
242.6B USD | 28.8 | 35.6 | |
| US |
|
Boeing Co
NYSE:BA
|
181.5B USD | -36.8 | 96.9 | |
| NL |
|
Airbus SE
PAR:AIR
|
130.9B EUR | 22 | 25.4 | |
| FR |
|
Safran SA
PAR:SAF
|
113.6B EUR | 25.6 | 16.2 | |
| UK |
|
Rolls-Royce Holdings PLC
LSE:RR
|
95.7B GBP | 21.4 | 16.8 | |
| US |
|
Lockheed Martin Corp
NYSE:LMT
|
127.2B USD | 17.5 | 24 | |
| US |
|
Howmet Aerospace Inc
NYSE:HWM
|
96.7B USD | 47.7 | 66.3 | |
| US |
|
General Dynamics Corp
NYSE:GD
|
86.7B USD | 17 | 20.4 | |
| UK |
|
BAE Systems PLC
LSE:BA
|
63.4B GBP | 25.1 | 30.3 |
Market Distribution
| Min | 0 |
| 30th Percentile | 10.6 |
| Median | 14.5 |
| 70th Percentile | 20.6 |
| Max | 3 794.4 |
Other Multiples
CAE Inc
Glance View
In the global landscape of training and simulation, CAE Inc. stands out as a particularly influential player, rooted in Montreal, Canada. The company's journey began in 1947, and over the years, they have crafted a unique niche, primarily focusing on flight simulation systems and pilot training. Initially garnering attention in the aviation sector, CAE honed its expertise in designing cutting-edge flight simulators, helping airlines and defense sectors to train pilots in a controlled, cost-effective manner. This capability became increasingly crucial as the demand for skilled pilots surged, driven by the rapid expansion of the commercial aviation industry and military needs. By pioneering innovations in virtual and augmented reality technologies, CAE transitioned these simulations into highly immersive experiences, enhancing pilot training effectiveness and safety. As the company expanded its horizons, it diversified its portfolio beyond aviation—taking strides into healthcare and defense training. In healthcare, CAE introduced simulation-based products that aid medical professionals in honing their skills without risking patient safety, filling a critical gap in medical education. Meanwhile, in defense, their integrated training solutions support military operations worldwide, underscoring CAE's role in enhancing operational readiness and effectiveness. Financially, the company derives revenue chiefly through long-term contracts with airlines, defense organizations, and healthcare institutions, positioning itself strategically in markets where training delivery remains indispensable. This model ensures a stable stream of income, backed by both their innovative technologies and unwavering commitment to enhancing training efficiency across sectoral boundaries.