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CGI Inc (GIB) Fair Value & Analysis

Technology · US · Market cap $12.8B

CI CGI Inc logo CGI Inc GIB · US
Price$74.74
Fair Value$127.10
Upside+70.1%
Quality67/100
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Healthy Growth
Solidly profitable · 10.3% net margin
Low debt · generates free cash flow
0.97% dividend yield
Ranks above peers (10/15)
Wide moat 66/100
Evidence: High Range $95.32 – $158.87 Share as image

Fair value as of: Jul 24, 2026

From 26 valuation models · updated 17 days ago

Fair value updated Jul 24, 2026, revised from $125.68 to $127.10 (+1.1%) since Jun 25, 2026. Share price +12.7% over the past month.

A solid business, screening 70% undervalued on our models.

What matters now

  • The price is below even our cautious bear case ($95.32). 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.
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Price vs Fair Value (5 years)

$121.44 $61.28 Fair Value $127.10 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 24, 2026.

How to read this chart

60‑month range $61.28 – $121.44 · fair‑value band $95.32 – $158.87 · the $74.74 price screens below the $127.10 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 24, 2026.

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Analysis

CGI Inc (GIB) currently trades at $74.74, while our model-based Fair Value estimate is $127.10, implying the stock looks roughly 70.1% undervalued today. The Quality Score stands at 67/100 (solid quality), in the Technology sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

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 Jul 24, 2026

Our scenario range runs from $95.32 (bear case) to $158.87 (bull case); at $74.74, 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 25% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -25% fair-value upside, at 70%, GIB screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $120.28 $208.73 $353.47 80
Residual Income $59.57 $81.70 $300.64 76
Rev-Margin DCF $130.82 $232.75 $359.09 74
All 26 models by family
DCF Models
FCF DCF $120.05 $213.12 $367.59 38
Owner Earnings $115.29 $204.95 $353.78 31
5Y Revenue Exit $130.82 $235.01 $374.07 39
5Y EBITDA Exit $153.96 $281.08 $437.06 41
5Y P/E Exit $114.51 $202.53 $299.87 38
10Y Revenue Exit $120.99 $217.60 $360.12 36
10Y EBITDA Exit $141.05 $250.69 $411.10 37
10Y P/E Exit $115.26 $194.26 $300.05 35
Earnings-Based
Graham-Dodd $60.86 $248.34 $338.09 54
Lynch FV $62.27 $88.96 $115.64 50
PEG = 1.0 $62.27 $88.96 $115.64 46
EPV $128.05 $151.13 $171.32 59
Dividend Discount
Gordon GGM $6.69 $13.91 $22.07 70
DDM Multi-Stage $6.69 $11.73 $14.60 61
Multiples
P/E Multiple $134.24 $178.99 $223.73 63
P/S Multiple $114.10 $152.14 $190.17 58
P/B Multiple $114.10 $152.14 $190.17 55
EV/EBIT $228.40 $308.00 $387.60 53
EV/EBITDA $188.59 $254.92 $321.25 54
EV/Revenue $139.88 $204.28 $268.69 43
Asset-Based
NCAV (Graham) $27.75 $37.18 $55.49 50
Growth DCF
Growth DCF $120.28 $208.73 $353.47 80
Rev-Margin DCF $130.82 $232.75 $359.09 74
Economic Profit
Residual Income $59.57 $81.70 $300.64 76
ROIC Compounder $144.07 $193.14 $254.82 72
Growth Earnings
Growth-Adj P/E $104.91 $149.88 $194.84 68

Widest divergence: DCF Models ($213.12) versus Dividend Discount ($11.73). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $16.3B
Revenue growth (YoY) +3.3%
Net margin 10.3%
Return on equity 16.6%
Free cash flow $2.0B FY2025
P/E ratio 11.2
More key figures
Operating margin 16.6%
EPS (TTM) $5.49
Dividend yield 1.0%
EPS growth (YoY) +10.6%
Net debt $3.6B FY2025

Figures from reported company fundamentals · as of Jul 24, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 67/100

Of which business quality 65 · Market factors (momentum, volatility) 42

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 29
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.

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 $15.9B in FY2025 versus $12.1B in FY2021, a compound +7.0%/yr. Reported net income was $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. growth/yr (3Y)
+7.7%
Avg. growth/yr (5Y)
+5.5%
Avg. growth/yr (32Y)
+18.2%
Revenue +7.0%/yr
FY21 $12.1B
FY22 $12.7B
FY23 $14.3B
FY24 $14.7B
FY25 $15.9B
Net income +4.9%/yr
FY21 $1.4B
FY22 $1.5B
FY23 $1.6B
FY24 $1.7B
FY25 $1.7B

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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 · 480 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 +70% · 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) 1.0% · 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

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.

VALUE 100 · sector 20
FUTURE 17 · sector 29
PAST 66 · sector 36
HEALTH 86 · sector 97
DIVIDEND 19 · sector 37

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Jul 24, 2026).

Stock Price Fair Value vs Fair Value
International Business Machines Corporation IBM $235.92 $143.90 -39%
Accenture plc ACNN 2,460 MXN 250.95 MXN -90%
Infosys Limited INFY ₹1,156 ₹1,457 +26%
HCL Technologies Limited HCLTECH ₹1,204 ₹1,230 +2%
Wipro Limited WIPRO ₹178.43 ₹226.81 +27%
Tech Mahindra Limited TECHM ₹1,455 ₹1,086 -25%
Samsung SDS Co 018260 199,300 KRW 196,390 KRW -1%
Persistent Systems Limited PERSISTENT ₹5,059 ₹2,364 -53%
Hyundai Autoever Corporation 307950 393,000 KRW 133,088 KRW -66%
Coforge Limited COFORGE ₹1,541 ₹702.84 -54%

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Frequently asked questions

Is CGI Inc (GIB) overvalued or undervalued?
As of Jul 24, 2026, our model estimates a fair value of $127.10 versus a price of $74.74, about +70% (undervalued).
What is the fair value of GIB?
Our model-based fair value for CGI Inc is $127.10 (as of Jul 24, 2026), built from audited fundamentals. The current price is $74.74.
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 Jul 24, 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 0.97% relative to its recent price (as of Jul 24, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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