DCF Tool

CAE

Cae Inc. – Other Technical and Trade Schools
CAE Inc. is a high technology company, at the leading edge of digital immersion, providing solutions to make the world a safer place. Backed by a record of more than 70 years of industry firsts, the company continues to reimagine the customer experience and revolutionize training and operational support solutions in civil aviation, defence and security, and healthcare. The company is the partner of choice to customers worldwide who operate in complex, high-stakes and largely regulated environments, where successful outcomes are critical. Testament to its customers' ongoing needs for its solutions, over 60 percent of CAE's revenue is recurring in nature. The company has the broadest global presence in its industry, with approximately 10,000 employees, 160 sites and training locations in over 35 countries.
Analysis Results
Intrinsic Value $6.80
Latest Price $20.52
Relative Value 202% overvalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of -4.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -4.6%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 202 185
2024 193 162
2025 184 142
2026 175 124
2027 167 108
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2420 million. This corresponds to a present value of 1440 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 722 million. Adding in the terminal value gives a total present value of 2160 million.

There are presently 318.0 million outstanding shares, so the intrinsic value per share is 6.8.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,716,223,286
Current Cash 276,452,052
Current Liabilities 1,670,374,260
Current Debt 193,141,017
Non-Cash Working Capital (NCWC) -37,462,008
Change in NCWC -65,592,763
EBIT 314,792,700
Tax Provision 2,875,548
Depreciation and Amortization 248,016,071
Capital Expenditure -289,791,402
Unlevered Free Cash Flow 200,046,653
Current Assets 2,677,255,452
Current Cash 733,856,116
Current Liabilities 2,086,668,082
Current Debt 171,399,501
Non-Cash Working Capital (NCWC) 28,130,754
Change in NCWC 23,904,331
EBIT 209,276,968
Tax Provision -31,458,900
Depreciation and Amortization 253,176,794
Capital Expenditure -129,639,197
Unlevered Free Cash Flow 356,718,896
Current Assets 1,978,388,887
Current Cash 666,718,322
Current Liabilities 1,452,692,231
Current Debt 145,248,091
Non-Cash Working Capital (NCWC) 4,226,423
Change in NCWC -26,785,904
EBIT 377,630,948
Tax Provision 51,985,010
Depreciation and Amortization 215,124,961
Capital Expenditure -270,491,110
Unlevered Free Cash Flow 224,510,817
Current Assets 1,582,752,351
Current Cash 334,169,068
Current Liabilities 1,415,405,636
Current Debt 197,834,680
Non-Cash Working Capital (NCWC) 31,012,327
Change in NCWC -109,191,537
EBIT 343,307,966
Tax Provision 44,645,766
Depreciation and Amortization 162,103,085
Capital Expenditure -253,492,070
Unlevered Free Cash Flow 91,536,164
Current Assets 1,597,192,512
Current Cash 473,934,016
Current Liabilities 1,023,511,467
Current Debt 40,456,836
Non-Cash Working Capital (NCWC) 140,203,865
Change in NCWC -3,983,086
EBIT 328,304,905
Tax Provision 22,553,523
Depreciation and Amortization 154,697,023
Capital Expenditure -134,778,618
Unlevered Free Cash Flow 319,412,593
Current Assets 1,434,174,564
Current Cash 377,052,613
Current Liabilities 951,708,588
Current Debt 38,773,589
Non-Cash Working Capital (NCWC) 144,186,951
Change in NCWC -2,409,344
EBIT 289,494,527
Tax Provision 26,297,309
Depreciation and Amortization 158,306,813
Capital Expenditure -166,524,722
Unlevered Free Cash Flow 244,005,121
Current Assets 1,347,084,449
Current Cash 373,882,149
Current Liabilities 918,459,670
Current Debt 91,853,666
Non-Cash Working Capital (NCWC) 146,596,295
Change in NCWC -50,275,121
EBIT 261,933,087
Tax Provision 15,706,745
Depreciation and Amortization 167,692,611
Capital Expenditure -90,698,758
Unlevered Free Cash Flow 268,123,833
Current Assets 1,236,878,125
Current Cash 261,386,980
Current Liabilities 822,553,638
Current Debt 43,933,911
Non-Cash Working Capital (NCWC) 196,871,417
Change in NCWC 84,298,806
EBIT 247,375,625
Tax Provision 45,754,595
Depreciation and Amortization 149,691,938
Capital Expenditure -114,149,008
Unlevered Free Cash Flow 312,622,817

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