Intrinsic value of CGI Group Cl A - GIB

Previous Close

$48.68

  Intrinsic Value

premium content

  Rating & Target

premium content

  Value-price divergence*

premium content

Previous close

$48.68

 
Intrinsic value

$64.33

 
Up/down potential

+32%

 
Rating

buy

 
Value-price divergence* premium content

Premium access subscription - $499/yr

please register and log in before paying

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of GIB stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 12.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  3.85
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  7,907
  8,065
  8,251
  8,463
  8,701
  8,965
  9,254
  9,569
  9,910
  10,278
  10,672
  11,094
  11,544
  12,024
  12,533
  13,074
  13,647
  14,253
  14,895
  15,572
  16,288
  17,043
  17,839
  18,678
  19,563
  20,494
  21,475
  22,507
  23,593
  24,735
  25,937
Variable operating expenses, $m
 
  5,522
  5,638
  5,769
  5,917
  6,081
  6,261
  6,457
  6,668
  6,897
  7,142
  6,891
  7,170
  7,468
  7,784
  8,120
  8,476
  8,853
  9,251
  9,672
  10,116
  10,585
  11,080
  11,601
  12,150
  12,729
  13,338
  13,979
  14,653
  15,363
  16,109
Fixed operating expenses, $m
 
  1,479
  1,516
  1,554
  1,593
  1,633
  1,673
  1,715
  1,758
  1,802
  1,847
  1,893
  1,941
  1,989
  2,039
  2,090
  2,142
  2,196
  2,251
  2,307
  2,365
  2,424
  2,484
  2,546
  2,610
  2,675
  2,742
  2,811
  2,881
  2,953
  3,027
Total operating expenses, $m
  6,832
  7,001
  7,154
  7,323
  7,510
  7,714
  7,934
  8,172
  8,426
  8,699
  8,989
  8,784
  9,111
  9,457
  9,823
  10,210
  10,618
  11,049
  11,502
  11,979
  12,481
  13,009
  13,564
  14,147
  14,760
  15,404
  16,080
  16,790
  17,534
  18,316
  19,136
Operating income, $m
  1,075
  1,064
  1,097
  1,139
  1,191
  1,251
  1,320
  1,397
  1,484
  1,579
  1,683
  2,310
  2,434
  2,567
  2,710
  2,864
  3,029
  3,205
  3,393
  3,594
  3,807
  4,034
  4,275
  4,531
  4,802
  5,090
  5,395
  5,717
  6,058
  6,419
  6,801
EBITDA, $m
  1,371
  1,621
  1,655
  1,699
  1,751
  1,813
  1,883
  1,963
  2,051
  2,148
  2,255
  2,371
  2,496
  2,632
  2,778
  2,935
  3,103
  3,282
  3,474
  3,678
  3,896
  4,127
  4,372
  4,633
  4,909
  5,201
  5,511
  5,840
  6,187
  6,554
  6,942
Interest expense (income), $m
  61
  52
  55
  59
  63
  67
  73
  78
  84
  91
  98
  106
  114
  122
  132
  142
  152
  163
  175
  187
  200
  214
  229
  244
  260
  277
  295
  314
  334
  355
  377
Earnings before tax, $m
  1,075
  1,011
  1,042
  1,081
  1,128
  1,183
  1,247
  1,319
  1,399
  1,488
  1,585
  2,205
  2,320
  2,444
  2,578
  2,722
  2,877
  3,042
  3,218
  3,406
  3,607
  3,820
  4,046
  4,287
  4,542
  4,813
  5,099
  5,403
  5,724
  6,064
  6,424
Tax expense, $m
  284
  273
  281
  292
  305
  320
  337
  356
  378
  402
  428
  595
  626
  660
  696
  735
  777
  821
  869
  920
  974
  1,031
  1,093
  1,157
  1,226
  1,299
  1,377
  1,459
  1,546
  1,637
  1,734
Net income, $m
  791
  738
  760
  789
  823
  864
  910
  963
  1,022
  1,086
  1,157
  1,609
  1,693
  1,784
  1,882
  1,987
  2,100
  2,221
  2,349
  2,487
  2,633
  2,789
  2,954
  3,129
  3,316
  3,513
  3,722
  3,944
  4,179
  4,427
  4,689

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  442
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  8,655
  8,375
  8,568
  8,788
  9,035
  9,309
  9,609
  9,937
  10,291
  10,673
  11,082
  11,520
  11,988
  12,486
  13,015
  13,576
  14,171
  14,801
  15,467
  16,171
  16,914
  17,698
  18,525
  19,396
  20,314
  21,281
  22,300
  23,371
  24,499
  25,686
  26,934
Adjusted assets (=assets-cash), $m
  8,213
  8,375
  8,568
  8,788
  9,035
  9,309
  9,609
  9,937
  10,291
  10,673
  11,082
  11,520
  11,988
  12,486
  13,015
  13,576
  14,171
  14,801
  15,467
  16,171
  16,914
  17,698
  18,525
  19,396
  20,314
  21,281
  22,300
  23,371
  24,499
  25,686
  26,934
Revenue / Adjusted assets
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
  0.963
Average production assets, $m
  885
  903
  924
  948
  974
  1,004
  1,036
  1,072
  1,110
  1,151
  1,195
  1,243
  1,293
  1,347
  1,404
  1,464
  1,528
  1,596
  1,668
  1,744
  1,824
  1,909
  1,998
  2,092
  2,191
  2,295
  2,405
  2,521
  2,642
  2,770
  2,905
Working capital, $m
  314
  16
  17
  17
  17
  18
  19
  19
  20
  21
  21
  22
  23
  24
  25
  26
  27
  29
  30
  31
  33
  34
  36
  37
  39
  41
  43
  45
  47
  49
  52
Total debt, $m
  1,414
  1,346
  1,434
  1,534
  1,646
  1,770
  1,907
  2,055
  2,216
  2,389
  2,575
  2,774
  2,987
  3,213
  3,453
  3,708
  3,978
  4,264
  4,566
  4,886
  5,223
  5,579
  5,954
  6,350
  6,767
  7,206
  7,668
  8,155
  8,667
  9,205
  9,772
Total liabilities, $m
  3,870
  3,802
  3,890
  3,990
  4,102
  4,226
  4,363
  4,511
  4,672
  4,845
  5,031
  5,230
  5,443
  5,669
  5,909
  6,164
  6,434
  6,720
  7,022
  7,342
  7,679
  8,035
  8,410
  8,806
  9,223
  9,662
  10,124
  10,611
  11,123
  11,661
  12,228
Total equity, $m
  4,785
  4,573
  4,678
  4,798
  4,933
  5,083
  5,247
  5,425
  5,619
  5,827
  6,051
  6,290
  6,545
  6,817
  7,106
  7,413
  7,738
  8,081
  8,445
  8,829
  9,235
  9,663
  10,114
  10,590
  11,092
  11,620
  12,176
  12,761
  13,377
  14,024
  14,706
Total liabilities and equity, $m
  8,655
  8,375
  8,568
  8,788
  9,035
  9,309
  9,610
  9,936
  10,291
  10,672
  11,082
  11,520
  11,988
  12,486
  13,015
  13,577
  14,172
  14,801
  15,467
  16,171
  16,914
  17,698
  18,524
  19,396
  20,315
  21,282
  22,300
  23,372
  24,500
  25,685
  26,934
Debt-to-equity ratio
  0.296
  0.290
  0.310
  0.320
  0.330
  0.350
  0.360
  0.380
  0.390
  0.410
  0.430
  0.440
  0.460
  0.470
  0.490
  0.500
  0.510
  0.530
  0.540
  0.550
  0.570
  0.580
  0.590
  0.600
  0.610
  0.620
  0.630
  0.640
  0.650
  0.660
  0.660
Adjusted equity ratio
  0.529
  0.546
  0.546
  0.546
  0.546
  0.546
  0.546
  0.546
  0.546
  0.546
  0.546
  0.546
  0.546
  0.546
  0.546
  0.546
  0.546
  0.546
  0.546
  0.546
  0.546
  0.546
  0.546
  0.546
  0.546
  0.546
  0.546
  0.546
  0.546
  0.546
  0.546

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  791
  738
  760
  789
  823
  864
  910
  963
  1,022
  1,086
  1,157
  1,609
  1,693
  1,784
  1,882
  1,987
  2,100
  2,221
  2,349
  2,487
  2,633
  2,789
  2,954
  3,129
  3,316
  3,513
  3,722
  3,944
  4,179
  4,427
  4,689
Depreciation, amort., depletion, $m
  296
  557
  558
  559
  561
  562
  564
  565
  567
  569
  571
  60
  63
  65
  68
  71
  74
  77
  81
  85
  89
  93
  97
  102
  106
  111
  117
  122
  128
  134
  141
Funds from operations, $m
  848
  1,295
  1,319
  1,348
  1,384
  1,426
  1,474
  1,528
  1,589
  1,655
  1,729
  1,670
  1,756
  1,850
  1,950
  2,058
  2,174
  2,298
  2,430
  2,571
  2,721
  2,881
  3,051
  3,231
  3,422
  3,625
  3,839
  4,066
  4,307
  4,561
  4,830
Change in working capital, $m
  -139
  0
  0
  0
  0
  1
  1
  1
  1
  1
  1
  1
  1
  1
  1
  1
  1
  1
  1
  1
  1
  2
  2
  2
  2
  2
  2
  2
  2
  2
  2
Cash from operations, $m
  987
  1,269
  1,318
  1,348
  1,383
  1,425
  1,473
  1,528
  1,588
  1,655
  1,728
  1,669
  1,755
  1,849
  1,949
  2,057
  2,173
  2,297
  2,429
  2,570
  2,720
  2,880
  3,049
  3,229
  3,420
  3,623
  3,837
  4,064
  4,305
  4,559
  4,828
Maintenance CAPEX, $m
  0
  -43
  -44
  -45
  -46
  -47
  -49
  -50
  -52
  -54
  -56
  -58
  -60
  -63
  -65
  -68
  -71
  -74
  -77
  -81
  -85
  -89
  -93
  -97
  -102
  -106
  -111
  -117
  -122
  -128
  -134
New CAPEX, $m
  -274
  -19
  -21
  -24
  -27
  -30
  -32
  -35
  -38
  -41
  -44
  -47
  -50
  -54
  -57
  -61
  -64
  -68
  -72
  -76
  -80
  -85
  -89
  -94
  -99
  -104
  -110
  -116
  -122
  -128
  -135
Cash from investing activities, $m
  -283
  -62
  -65
  -69
  -73
  -77
  -81
  -85
  -90
  -95
  -100
  -105
  -110
  -117
  -122
  -129
  -135
  -142
  -149
  -157
  -165
  -174
  -182
  -191
  -201
  -210
  -221
  -233
  -244
  -256
  -269
Free cash flow, $m
  704
  1,207
  1,254
  1,279
  1,311
  1,348
  1,392
  1,442
  1,498
  1,560
  1,628
  1,564
  1,645
  1,732
  1,827
  1,929
  2,038
  2,155
  2,280
  2,413
  2,555
  2,707
  2,867
  3,038
  3,220
  3,412
  3,616
  3,832
  4,061
  4,303
  4,559
Issuance/(repayment) of debt, $m
  -135
  74
  87
  100
  112
  124
  136
  149
  161
  173
  186
  199
  212
  226
  240
  255
  270
  286
  302
  319
  337
  356
  375
  396
  417
  439
  462
  487
  512
  539
  567
Issuance/(repurchase) of shares, $m
  -340
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -493
  74
  87
  100
  112
  124
  136
  149
  161
  173
  186
  199
  212
  226
  240
  255
  270
  286
  302
  319
  337
  356
  375
  396
  417
  439
  462
  487
  512
  539
  567
Total cash flow (excl. dividends), $m
  216
  1,281
  1,341
  1,379
  1,423
  1,473
  1,529
  1,591
  1,659
  1,733
  1,814
  1,763
  1,857
  1,958
  2,067
  2,184
  2,308
  2,441
  2,582
  2,733
  2,893
  3,062
  3,243
  3,434
  3,637
  3,851
  4,078
  4,319
  4,573
  4,841
  5,125
Retained Cash Flow (-), $m
  -283
  -88
  -105
  -120
  -135
  -150
  -164
  -179
  -193
  -208
  -224
  -239
  -255
  -272
  -289
  -307
  -325
  -344
  -364
  -384
  -406
  -428
  -451
  -476
  -501
  -528
  -556
  -585
  -616
  -648
  -681
Prev. year cash balance distribution, $m
 
  300
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  1,493
  1,236
  1,259
  1,288
  1,323
  1,365
  1,412
  1,465
  1,525
  1,590
  1,523
  1,602
  1,686
  1,778
  1,877
  1,983
  2,097
  2,218
  2,348
  2,487
  2,634
  2,791
  2,958
  3,135
  3,323
  3,522
  3,733
  3,957
  4,194
  4,444
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  1,432
  1,131
  1,095
  1,061
  1,026
  990
  954
  916
  876
  834
  723
  683
  641
  597
  551
  504
  456
  409
  362
  316
  272
  232
  194
  160
  129
  103
  80
  61
  46
  33
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

CGI Group Inc. provides information technology and business process services in Canada and internationally. It offers agile, business transformation, change management, CIO advisory, cybersecurity, data analytics, digital enterprise, project management, and industry-specific business consulting services; application development and maintenance, portfolio management, quality assurance and testing, modernization, and migration services; business-to-business and customer operations support, purchase management, revenue management, and supplier payment services; and data center facilities and management, technical service desk, printing and document management, remote infrastructure, transformation, storage as a service, data vaulting, disaster recovery and archiving as a service, bottomless edge-to-core storage, and file sync and share as a service, as well as infrastructure solutions and consulting services. The company also provides IT outsourcing services; and data analytics, enterprise application integration, enterprise architecture and content management, enterprise resource planning (ERP), and geospatial solutions. In addition, it offers Asset & Resource Management, a solution suite for the utilities industry; Atlas360, a customer relationship management and business process solution; Collections360, a collections and debt management solution; Trade360, a trade solution; CommunityCare360; FlexProperty, an ERP solution for property management; Payments360; mobile workforce and outage management solutions, such as PragmaCAD and PragmaLINE; Ratabase, a solution for insurance companies; Sm@rtering, a meter infrastructure management solution; and Unify360. The company serves communication, financial service, health, manufacturing, oil and gas, post and logistic, retail and consumer service, transportation, and utility industries, as well as government. The company was founded in 1976 and is headquartered in Montreal, Canada.

FINANCIAL RATIOS  of  CGI Group Cl A (GIB)

Valuation Ratios
P/E Ratio 18.8
Price to Sales 1.9
Price to Book 3.1
Price to Tangible Book
Price to Cash Flow 15
Price to Free Cash Flow 20.8
Growth Rates
Sales Growth Rate 3.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 35.6%
Cap. Spend. - 3 Yr. Gr. Rate 11.6%
Financial Strength
Quick Ratio 3
Current Ratio 0.1
LT Debt to Equity 26.6%
Total Debt to Equity 29.6%
Interest Coverage 19
Management Effectiveness
Return On Assets 9.6%
Ret/ On Assets - 3 Yr. Avg. 9.1%
Return On Total Capital 12.9%
Ret/ On T. Cap. - 3 Yr. Avg. 12.3%
Return On Equity 17%
Return On Equity - 3 Yr. Avg. 17.9%
Asset Turnover 0.9
Profitability Ratios
Gross Margin 30.3%
Gross Margin - 3 Yr. Avg. 29.9%
EBITDA Margin 18.1%
EBITDA Margin - 3 Yr. Avg. 17.3%
Operating Margin 13.6%
Oper. Margin - 3 Yr. Avg. 12.4%
Pre-Tax Margin 13.6%
Pre-Tax Margin - 3 Yr. Avg. 12.4%
Net Profit Margin 10%
Net Profit Margin - 3 Yr. Avg. 9.2%
Effective Tax Rate 26.4%
Eff/ Tax Rate - 3 Yr. Avg. 25.6%
Payout Ratio 0%

GIB stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the GIB stock intrinsic value calculation we used $7907 million for the last fiscal year's total revenue generated by CGI Group Cl A. The default revenue input number comes from 2016 income statement of CGI Group Cl A. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our GIB stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for GIB is calculated based on our internal credit rating of CGI Group Cl A, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of CGI Group Cl A.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of GIB stock the variable cost ratio is equal to 68.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1443 million in the base year in the intrinsic value calculation for GIB stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.1% for CGI Group Cl A.

Corporate tax rate of 27% is the nominal tax rate for CGI Group Cl A. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the GIB stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for GIB are equal to 11.2%.

Life of production assets of 20.6 years is the average useful life of capital assets used in CGI Group Cl A operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for GIB is equal to 0.2%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $4785 million for CGI Group Cl A - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 263.301 million for CGI Group Cl A is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of CGI Group Cl A at the current share price and the inputted number of shares is $12.8 billion.


Premium access subscription - $499/yr

please register and log in before paying
RELATED COMPANIES Price Int.Val. Rating
BCE BCE 44.73 prem.  prem.
TU TELUS 33.88 prem.  prem.
ORCL Oracle 44.56 prem.  prem.
SAP SAP ADR 106.28 prem.  prem.
MSFT Microsoft 68.68 prem.  prem.

COMPANY NEWS

▶ After losing federal IT contract, CGI closes Durham operation   [May-08-17 03:15PM  American City Business Journals]
▶ CGI misses 2Q profit forecasts   [May-03-17 06:46AM  Associated Press]
▶ CGI reports strong Q2 results   [06:30AM  PR Newswire]
▶ CGI reports strong Q2 results   [06:30AM  CNW Group]
▶ Global IT firm buys CTS, gains foothold in Nashville area   [May-01-17 01:10PM  American City Business Journals]
▶ Major Birmingham tech firm acquired by Canadian IT giant   [09:14AM  American City Business Journals]
▶ Serious Breaches Shave Nearly 2% Off Public Company's Value   [Apr-12-17 02:10PM  The Wall Street Journal]
▶ Is CGI Group a Great Stock for Value Investors?   [Apr-05-17 09:30AM  Zacks]
▶ CGI Federal portfolio at odds with Trump agenda   [Mar-01-17 03:13PM  at bizjournals.com]
▶ CGI reports director election results   [Feb-01-17 07:20PM  PR Newswire]
▶ CGI renews its Normal Course Issuer Bid   [08:10AM  PR Newswire]
▶ CGI reports strong Q1 results   [07:59AM  PR Newswire]
▶ Is CGI Group Inc (GIB) Good Stock To Buy?   [Dec-10-16 08:43PM  at Insider Monkey]
▶ Is D.R. Horton, Inc. (DHI) Going To Burn These Hedge Funds?   [Dec-04-16 05:11PM  at Insider Monkey]
▶ Hedge Funds Are Crazy About Xilinx, Inc. (XLNX)   [Nov-28-16 09:44AM  at Insider Monkey]
Stock chart of GIB Financial statements of GIB
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.