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EV/EBIT

21.5
Current
10%
Cheaper
vs 3-y average of 23.8

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.

EV/EBIT
21.5
=
Enterprise Value
$14.4B
/
EBIT
CA$637m

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.

EV/EBIT
21.5
=
Enterprise Value
$14.4B
/
EBIT
CA$637m

Valuation Scenarios

CAE Inc is trading below its 3-year average

If EV/EBIT returns to its 3-Year Average (23.8), the stock would be worth $28.2 (11% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-33%
Maximum Upside
+18%
Average Downside
7%
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%
Industry Average 16.5 $19.57
-23%
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
/
Jan 2026
CA$637m
=
21.5
Current
$14.4B
/
Mar 2026
CA$740m
=
19.4
Forward
$14.4B
/
Mar 2027
CA$768.5m
=
18.7
Forward
$14.4B
/
Mar 2028
CA$870.9m
=
16.5
Forward
$14.4B
/
Mar 2029
CA$860.3m
=
16.7
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close
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
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
CA
CAE Inc
NYSE:CAE
Average EV/EBIT: 25.6
21.5
13%
1.7
US
RTX Corp
LSE:0R2N
29.2
17%
1.7
US
Raytheon Technologies Corp
NYSE:RTX
28.8
17%
1.7
US
Boeing Co
NYSE:BA
Negative Multiple: -36.8 N/A N/A
NL
Airbus SE
PAR:AIR
22
25%
0.9
FR
Safran SA
PAR:SAF
25.6
20%
1.3
UK
Rolls-Royce Holdings PLC
LSE:RR
21.4
4%
5.3
US
Lockheed Martin Corp
NYSE:LMT
17.5
11%
1.6
US
Howmet Aerospace Inc
NYSE:HWM
47.7
17%
2.8
US
General Dynamics Corp
NYSE:GD
17
8%
2.1
UK
BAE Systems PLC
LSE:BA
25.1
19%
1.3
P/E Multiple
Earnings Growth PEG
CA
CAE Inc
NYSE:CAE
Average P/E: 36.2
30.2
8%
3.8
US
RTX Corp
LSE:0R2N
36.2
18%
2
US
Raytheon Technologies Corp
NYSE:RTX
35.6
19%
1.9
US
Boeing Co
NYSE:BA
96.9
53%
1.8
NL
Airbus SE
PAR:AIR
25.4
19%
1.3
FR
Safran SA
PAR:SAF
16.2
-6%
N/A
UK
Rolls-Royce Holdings PLC
LSE:RR
16.8
-10%
N/A
US
Lockheed Martin Corp
NYSE:LMT
24
16%
1.5
US
Howmet Aerospace Inc
NYSE:HWM
66.3
20%
3.3
US
General Dynamics Corp
NYSE:GD
20.4
9%
2.3
UK
BAE Systems PLC
LSE:BA
30.3
16%
1.9

Market Distribution

In line with most companies in Canada
Percentile
57th
Based on 1 813 companies
57th percentile
16.1
Low
0 — 10.6
Typical Range
10.6 — 20.6
High
20.6 —
Distribution Statistics
Canada
Min 0
30th Percentile 10.6
Median 14.5
70th Percentile 20.6
Max 3 794.4

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.

CAE Intrinsic Value
31.54 USD
Undervaluation 19%
Intrinsic Value
Price $25.46
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