CAE (TSX:CAE) GF Value Rank : 10 (As of Nov. 08, 2024)

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What is CAE GF Value Rank?

CAE has the GF Value Rank of 10.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of CAE's GF Value Rank

For the Aerospace & Defense subindustry, CAE's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

CAE's GF Value Rank Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, CAE's GF Value Rank distribution charts can be found below:

* The bar in red indicates where CAE's GF Value Rank falls into.

CAE GF Value Rank Related Terms

Thank you for viewing the detailed overview of CAE's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

CAE Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » CAE Inc (TSX:CAE) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

CAE:USA CE9:Germany CE9:Germany

Address

8585 Cote de Liesse, Saint-Laurent, QC, CAN, H4T 1G6

Website

https://www.cae.com

CAE Inc provides training and aviation services, integrated enterprise solutions, in-service support, and crew-sourcing services. The company operations are managed through two segments: Civil Aviation which offers comprehensive training solutions for flight, cabin, maintenance, and ground personnel in commercial, business, and helicopter aviation, a complete range of flight simulation training devices, ab initio pilot training, and crew sourcing services, as well as aircraft flight operations solutions; and Defense and Security which is a global training and simulation provider delivering scalable, platform-independent solutions that enable and enhance force readiness and security. It generates the majority of its revenue from the Civil Aviation segment.

Executives

Pascal Grenier	Senior Officer
Patrick Decostre	Director
Marianne Harrison	Director
Ayman Antoun	Director
Alan Macgibbon	Director
Marc Parent	Director, Senior Officer
David Perkins	Director
Mark Hounsell	Senior Officer
Nick Leontidis	Senior Officer
Mary Lou Katherine Maher	Director
Hélène Violaine Gagnon	Senior Officer
Andrew Arnovitz	Senior Officer
Dan Sharkey	Senior Officer
Sonya Branco	Senior Officer
Gennaro Colabatistto	Senior Officer