CGI Inc
TSX:GIB.A

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CGI Inc
TSX:GIB.A
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Price: 87.93 CAD -2.06% Market Closed
Market Cap: CA$18.9B

EV/GP

8.1
Current
43%
Cheaper
vs 3-y average of 14.1

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
8.1
=
Enterprise Value
CA$23.5B
/
Gross Profit
CA$2.7B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
8.1
=
Enterprise Value
CA$23.5B
/
Gross Profit
CA$2.7B

Valuation Scenarios

CGI Inc is trading below its 3-year average

If EV/GP returns to its 3-Year Average (14.1), the stock would be worth CA$154 (75% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-54%
Maximum Upside
+75%
Average Upside
19%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 8.1 CA$87.93
0%
3-Year Average 14.1 CA$154
+75%
5-Year Average 14.1 CA$153.67
+75%
Industry Average 3.7 CA$40.24
-54%
Country Average 6.6 CA$72.34
-18%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close

Market Distribution

In line with most companies in Canada
Percentile
57th
Based on 1 947 companies
57th percentile
8.1
Low
0.1 — 3.8
Typical Range
3.8 — 10.6
High
10.6 —
Distribution Statistics
Canada
Min 0.1
30th Percentile 3.8
Median 6.6
70th Percentile 10.6
Max 259 067.6

CGI Inc
Glance View

CGI Inc., originally founded in 1976 by Serge Godin and André Imbeau as "Conseillers en gestion et informatique," stands as a testament to the evolution of the information technology and business consulting industry. Initially starting with the aim of offering IT consulting services, the company nurtured its roots in Quebec before sprouting branches worldwide. CGI has gradually transformed into a behemoth through a series of strategic acquisitions and solid organic growth. Its business model is akin to a sophisticated mosaic, interweaving IT services, systems integration, and managed services seamlessly. The company’s prowess lies in understanding complex technological needs across various industries and crafting tailored solutions that drive efficiency and innovation for its clients. This focus not only ensures high client satisfaction but also creates a steady revenue stream, with contracts often spanning multiple years. As CGI navigates the digital landscape, its revenue streams are as diversified as its geographical footprint. Primarily, the company earns through long-term contracts in outsourcing and consulting, designed to optimize and integrate client operations. The beauty of this model is its predictability, which helps in maintaining a reliable financial outlook. By providing end-to-end IT and business process services, CGI plays an indispensable role in modernizing its clients' operations, thus embedding itself deeply into their business processes. The company's revenue is further enriched by its continuous investment in developing proprietary intellectual property solutions, which cater to niche industry needs and set CGI apart from its competitors. This blend of diverse service areas and intellectual capital not only sustains its growth but fortifies CGI’s position in the global market as a trusted partner in digital transformation.

GIB.A Intrinsic Value
144.7 CAD
Undervaluation 39%
Intrinsic Value
Price CA$87.93
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