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CGI Inc (GIB) Fair Value & Analysis

Technology · US · Market cap $12.8B · ISIN CA12532H1047

What is CGI Inc really worth?

CI CGI Inc logo CGI Inc GIB · US
Price$74.84
Fair Value$180.49
Upside+141.2%
Quality67/100

A solid business, trading 59% below our fair value of $180.49.

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Strengths

Healthy Growth (revenue 5y +5.5 %/yr)
Solidly profitable · 10.3% net margin
Low debt · generates free cash flow
Ranks above peers (10/15)
Wide moat 66/100

Risks

!Weak on future: 17 out of 100
!Weak on dividend: 17 out of 100

For context

·0.86% dividend yield
Evidence: High Range $105.33 – $225.62

Fair value as of: Aug 27, 2026

From 26 valuation models · updated 8 days ago

Fair value updated Aug 27, 2026, revised from $179.72 to $180.49 (+0.4%) since Aug 13, 2026. Share price +0.6% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price is below even our cautious bear case ($105.33). The market is more pessimistic than our downside scenario.
  • Solid quality (67/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range ($105.33 to $225.62) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

$121.44 $61.28 Fair Value $180.49 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 27, 2026.

How to read this chart

60‑month range $61.28 – $121.44 · fair‑value band $105.33 – $225.62 · the $74.84 price screens below the $180.49 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 27, 2026.

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Analysis

CGI Inc (GIB) currently trades at $74.84, while our model-based Fair Value estimate is $180.49, implying the stock looks roughly 58.5% undervalued today. The Quality Score stands at 67/100 (solid quality), in the Technology sector. Bull case: the DCF Models group reads highest at a median of $241.05 per share, and 23 of the 26 models we run sit above the $74.84 price. Bear case: the Asset-Based group reads lowest at $37.18, and 3 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, CGI Inc generated revenue of $16.3B at a net margin of 10.3%. Revenue grew 3.3% year over year. It earns a return on equity of 16.6%. Net debt stands at $3.6B. Fundamentals as of Aug 27, 2026

Our scenario range runs from $105.33 (bear case) to $225.62 (bull case); at $74.84, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 29% below its 52-week high and 26% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at 69% fair-value upside, at 141%, GIB screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 11 months have passed since. In that time the company retained roughly $4.50 per share, which is 2.5 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence $120.05 $213.12 $367.59 78
Growth DCF $120.28 $208.73 $353.47 76
Owner Earnings $115.29 $204.95 $353.78 74
All 26 models by family
DCF Models
FCF DCF best evidence $120.05 $213.12 $367.59 78
Owner Earnings $115.29 $204.95 $353.78 74
5Y Revenue Exit $137.80 $248.90 $397.44 71
5Y EBITDA Exit $200.60 $373.92 $587.66 73
5Y P/E Exit $147.22 $267.66 $401.61 69
10Y Revenue Exit $125.20 $227.58 $379.03 65
10Y EBITDA Exit $171.53 $317.40 $533.00 66
10Y P/E Exit $136.64 $241.05 $382.40 62
Earnings-Based
Graham-Dodd $60.86 $248.34 $338.09 64
Lynch FV $62.27 $88.96 $115.64 61
PEG = 1.0 $62.27 $88.96 $115.64 57
EPV $128.05 $151.13 $171.32 74
Dividend Discount
Gordon GGM $6.69 $13.91 $22.07 66
DDM Multi-Stage $6.69 $11.73 $14.60 66
Multiples
P/E Multiple $187.94 $250.58 $313.23 63
P/S Multiple $114.10 $152.14 $190.17 58
P/B Multiple $114.10 $152.14 $190.17 55
EV/EBIT $308.00 $414.14 $520.27 66
EV/EBITDA $265.13 $356.97 $448.82 67
EV/Revenue $150.57 $219.55 $288.54 53
Asset-Based
NCAV (Graham) $27.75 $37.18 $55.49 54
Growth DCF
Growth DCF $120.28 $208.73 $353.47 76
Rev-Margin DCF $137.80 $246.32 $380.79 71
Economic Profit
Residual Income $59.57 $81.70 $300.64 64
ROIC Compounder $144.07 $193.14 $254.82 72
Growth Earnings
Growth-Adj P/E $128.94 $184.21 $239.47 67

Widest divergence: DCF Models ($241.05) versus Dividend Discount ($11.73). Highest evidence: FCF DCF (78).

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Key figures & financial health

P/E ratio 11.2 as of Jun 20, 2026
P/S ratio 1.16 P/E × margin
EPS (TTM) $5.49 price ÷ EPS = P/E 11.2
Dividend yield 0.9% payout 11.7%
Net margin 10.4% FY2025
Return on equity 16.6% TTM
More key figures
Profitability
Return on assets (EBIT) 14.5% avg 5y
Operating margin 16.6% TTM
Growth
Revenue (TTM) $16.3B TTM
Revenue growth (YoY) +3.3% 3y avg +7.7%
EPS growth (YoY) +10.6%
Balance sheet & cash flow
Free cash flow $2.0B FY2025
Net debt $3.6B FY2025 · ≈ 1.8 yrs of FCF

Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 67/100

Of which business quality 65 · Market factors (momentum, volatility) 45

Profitability 51
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 64
Earnings quality: real cash, not paper profit
Fin. Strength 72
Balance sheet, leverage, solvency risk
Investment 65
Disciplined investing over empire-building
Low Volatility 82
Calm price path (market factor)
Momentum 36
Price trend over the last 3–12 months (market factor)
52W Momentum 21
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

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.

Full company description

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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

CGI Inc reported revenue of C$15.9B in FY2025 versus C$12.1B in FY2021, a compound +7.0%/yr. Reported net income was C$1.7B in FY2025, compounding +4.9%/yr from FY2021.

Growth Quality 80/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$15.9B
Latest YoY
+8.4%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.7%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.5%
Avg. revenue growth/yr (32Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+18.2%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+11.0% (10.1 + 0.9)
Revenue +7.0%/yr
FY21 C$12.1B
FY22 C$12.7B
FY23 C$14.3B
FY24 C$14.7B
FY25 C$15.9B
Net income +4.9%/yr
FY21 C$1.4B
FY22 C$1.5B
FY23 C$1.6B
FY24 C$1.7B
FY25 C$1.7B
Character of growth · EPS growth decomposed (2014-2025) +10.0 % p.a.
Revenue per share +7.8 %

of which total revenue +4.1 % · buybacks/dilution +3.6 %

EBIT margin +3.0 %
Tax rate +0.0 %
Residual (interest, one-offs) −0.8 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "CGI Inc Fair Value". https://www.fairvalue-calculator.com/stock/GIB

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Information Technology Services · 486 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 67 · Top 25%
Fair Value upside +141% · Top 25%
Return on equity (TTM) 17% · Above median
Return on assets 9% · Top 25%
Net margin (TTM) 10% · Top 25%
Operating margin (TTM) 17% · Top 25%
Revenue growth 3% · Below median
Dividend yield (TTM) 0.9% · Below median
Debt / equity 0.27× · Higher than median

Valuation Multiples vs Information Technology Services median · lower = cheaper

P/E (TTM) 11.2× · Cheaper than 75% of peers
P/B 1.25× · Cheaper than median
P/S (TTM) 0.79× · Cheaper than median
P/FCF 6.5× · Pricier than median
EV/EBITDA 5.1× · Cheaper than 75% of peers
PEG 1.25× · Pricier than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 34
FUTURE17 · sector 31
PAST66 · sector 33
HEALTH86 · sector 97
DIVIDEND17 · sector 36

Insider activity: 45/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Aug 27, 2026).

Stock Price Fair Value vs Fair Value
International Business Machines Corporation IBM $235.59 $175.76 −25%
Accenture plc ACN $189.61 $334.27 +76%
Tata Consultancy Services Limited TCS ₹2,302 ₹3,473 +51%
Infosys Limited INFY ₹1,156 ₹1,958 +69%
HCL Technologies Limited HCLTECH ₹1,282 ₹1,722 +34%
Fiserv, Inc FI C$5.13 C$8.07 +57%
Wipro Limited WIT $1.83 $3.51 +92%
Fidelity National Information Services, Inc FIS $41.34 $19.28 −53%
Cognizant Technology Solutions Corporation CTSH $64.04 $132.01 +106%
Capgemini SE CAP €109.45 €222.79 +104%

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Frequently asked questions

Is CGI Inc (GIB) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of $180.49 versus a price of $74.84, about +141% upside (undervalued).
What is the fair value of GIB?
Our model-based fair value for CGI Inc is $180.49 (as of Aug 27, 2026), built from audited fundamentals. The current price: $74.84.
What is the quality score of GIB?
CGI Inc has a Quality Score of 67/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of CGI Inc (GIB)?
CGI Inc reported trailing-twelve-month revenue of about $16.3B (latest available figure, as of Aug 27, 2026).
What is the net profit margin of GIB?
The net profit margin of CGI Inc is about 10.3%, meaning it keeps roughly 10.3% of revenue as net income. Based on the latest reported figures.
Does CGI Inc pay a dividend?
CGI Inc currently shows a dividend yield of about 0.86% relative to its recent price (as of Aug 27, 2026).
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