CGI Inc.
CGI Inc. provides information technology and business process services in Western and Southern Europe, the United States, Canada, Scandinavia, Northwest and Central-East Europe, the United Kingdom, Australia, Germany, Finland, Poland, Baltics, and the Asia Pacific. It offers end-to-end services and…
CGI Inc. provides information technology and business process services in Western and Southern Europe, the United States, Canada, Scandinavia, Northwest and Central-East Europe, the United Kingdom, Australia, Germany, Finland, Poland, Baltics, and the Asia Pacific. It offers end-to-end services and solutions, including business and strategic IT consulting; systems integration, such as data integration, AI and automation integration, cloud integration, Internet of Things, enterprise application integration, application programming interface integration, and legacy system modernization; managed IT and business process; and application services comprising application management, DevSecOps, application modernization and rationalization, and quality engineering and assurance. The company also provides infrastructure services, which include legacy infrastructure modernization, cloud and hybrid infrastructure management, IT service management, FinOps-enabled cloud management, cyber resilience and compliance, site reliability engineering and AIOps, and infrastructure-as-code; and intellectual property business solutions. It serves banking and capital markets, communications and media, energy and utilities, government, health, insurance, life sciences, manufacturing, retail and consumer services, space, transportation, and logistics industries. The company was formerly known as CGI Group Inc. and changed its name to CGI Inc. in January 2019. CGI Inc. was founded in 1976 and is headquartered in Montreal, Canada.Looks undervalued
5-year outlook: Not shown because confidence is low: Earnings-based DCF is somewhat apart.
Other models: CAD 103.86–154.84 (median 128.13). The recommended value is in line with them.
Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Details and the full model are below.
Market price below modeled range
Free-cash-flow DCF using TTM through 30 Jun 2026 reported free cash flow, with cash, debt, and shares from the latest report. Base assumptions are 7.76% growth, 3.25% terminal growth, and 11.5% discount. Low/high cases vary growth by 2 and terminal growth/discount by 1 percentage point; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 7.76%, discount rate 11.50%, terminal growth 3.25% (sector defaults). See a worked example.
Blended growth assumption: 7.8% (sector default 8.5%, own revenue history 7.0%).
Adjust assumptions
Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Compare models- Recommended: Free-cash-flow DCF — CAD 157.92 (+36.7%)
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EPS-based Gordon proxy
— CAD 103.86 (-10.1%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— CAD 157.92 (+36.7%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— CAD 128.13 (+10.9%)
Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
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EV/EBITDA (12x)
— CAD 154.84 (+34.1%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— CAD 156.74 (+35.7%)
Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
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EV/Sales (Rule of 40)
— CAD 392.08 (+239.4%)
Not used: Used only when cash-flow models land far below the price; here they do not.
| Bear CAD 116.23 | 0.6% |
| Base CAD 157.92 | 26.9% |
| Bull CAD 227.36 | 49.2% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At CAD 115.51 the market implies about this annual free-cash-flow growth for 5 years (terminal 3.3%, discount 11.5%).
Compare: the market implies 1.1% a year, this model assumes 7.8%. The model is more optimistic than the price, which is why it reads as undervalued.
How the Free-cash-flow DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
| Growth \ Discount | 9.5% | 10.5% | 11.5% | 12.5% | 13.5% |
|---|---|---|---|---|---|
| 3.8% | 179.09 | 151.88 | 131.27 | 115.11 | 102.11 |
| 5.8% | 196.66 | 166.77 | 144.13 | 126.39 | 112.12 |
| 7.8% | 215.54 | 182.75 | 157.92 | 138.48 | 122.84 |
| 9.8% | 235.79 | 199.88 | 172.70 | 151.42 | 134.32 |
| 11.8% | 257.50 | 218.23 | 188.52 | 165.27 | 146.59 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 90 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue +6.3% a year | 20 / 20 |
| Balance sheet | net debt 1.2x EBITDA | 20 / 20 |
| Margins | EBITDA margin 18% | 10 / 20 |
Peers in Information Technology
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| GIB-A.TO (this company) | CAD 115.51 | 26.9% | 13.9 | 2.4 | 0.6% | 90 |
| SMCI Supermicro | USD 27.08 | 50.8% | 8.5 | 1.3 | – | 68 |
| SNDK Sandisk | USD 806.43 | 44.1% | 6.4 | 6.8 | – | 76 |
| ADBE Adobe Inc. | USD 246.44 | 42.5% | 13.4 | 8.3 | – | 100 |
| IT Gartner | USD 198.07 | 35.7% | 13.3 | – | – | 92 |
| INTU Intuit | USD 354.84 | 31.9% | 21.1 | 5.1 | 1.4% | 100 |
| HPQ HP Inc. | USD 29.44 | 31.6% | 11.1 | – | 4.0% | 64 |
| FSLR First Solar | USD 195.76 | 25.9% | 11.3 | 1.9 | – | 84 |
| COHR Coherent Corp. | USD 169.76 | 15.1% | 34.7 | 3.0 | – | 73 |
| Peer median | 12.3 | 4.0 | ||||
Dividends
Paid in the last 12 months: CAD 0.68 per share · yield 0.59% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 0.510 |
| 2025 | 0.620 |
| 2024 | 0.150 |
Trailing 12-month financials
TTM through 30 Jun 2026 · quarterly EODHD data · data downloaded 06 Nov 2026 12:29
| Revenue | CAD 16,441,383,000 |
|---|---|
| EBITDA | CAD 3,003,589,000 |
| EBIT | CAD 2,493,740,000 |
| Net income | CAD 1,733,271,000 |
| Free cash flow | CAD 2,434,137,000 |
| Capital expenditures | CAD 156,419,000 |
| Debt | CAD 4,337,091,000 |
| Cash | CAD 633,424,000 |
| Working capital | CAD -348,998,000 |
| Shares outstanding | 208,850,248 |
| Reported dividends per share | CAD 0.6810 |