Source: Shutterstock CGI Inc. ( TSE:GIB.A ) saw a double-digit share price rise of over 10% in the past couple of months on the TSX. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s examine CGI’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. What Is CGI Worth? CGI appears to be overvalued by 32% at the moment, based on my discounted cash flow valuation. The stock is currently priced at CA$122 on the market compared to my intrinsic value of CA$92.55. Not the best news for investors looking to buy! Another thing to keep in mind is that CGI’s share price is quite stable relative to the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
