Latest Ratios: P/E Ratio 36.5x · EV/EBITDA 13.2x · ROE 6.0%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $8.1B | $8.4B | $7.9B | $6.6B | $7.2B | $8.2B | $7.7B | $3.4B | $5.9B | $5.0B | $4.1B |
| Enterprise Value | $10.0B | $11.1B | $11.0B | $9.5B | $10.2B | $10.9B | $9.2B | $5.1B | $7.8B | $5.7B | $4.9B |
| P/E Ratio → | 36.50 | 26.58 | 19.36 | — | 32.33 | 57.96 | — | 10.88 | 18.01 | 14.41 | 16.44 |
| P/S Ratio | 2.34 | 1.70 | 1.67 | 1.53 | 1.80 | 2.42 | 2.60 | 1.33 | 1.80 | 1.77 | 1.52 |
| P/B Ratio | 2.13 | 1.55 | 1.58 | 1.53 | 1.57 | 2.00 | 2.41 | 1.86 | 2.46 | 2.12 | 1.98 |
| P/FCF | 19.67 | 14.34 | 17.38 | 73.63 | — | 147.30 | 38.18 | 20.96 | 30.91 | 23.34 | 18.06 |
| P/OCF | 13.17 | 9.60 | 8.77 | 11.58 | 17.64 | 19.51 | 21.14 | 6.20 | 11.19 | 12.42 | 8.88 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.25 | 2.34 | 2.21 | 2.55 | 3.22 | 3.08 | 2.02 | 2.37 | 2.00 | 1.80 |
| EV / EBITDA | 13.21 | 10.31 | 9.65 | 50.06 | 12.67 | 18.26 | 24.94 | 9.04 | 11.28 | 8.57 | 8.45 |
| EV / EBIT | 22.77 | 17.78 | 15.60 | — | 23.07 | 40.74 | 291.27 | 14.19 | 16.80 | 12.73 | 13.79 |
| EV / FCF | — | 18.96 | 24.40 | 106.30 | — | 196.04 | 45.20 | 31.91 | 40.72 | 26.37 | 21.34 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 27.3% | 27.3% | 27.6% | 27.0% | 27.0% | 28.3% | 25.7% | 28.7% | 28.5% | 31.0% | 30.0% |
| Operating Margin | 12.7% | 12.7% | 15.5% | -4.3% | 11.6% | 8.4% | 1.6% | 14.0% | 14.5% | 16.3% | 13.5% |
| Net Profit Margin | 6.4% | 6.4% | 8.6% | -7.1% | 5.6% | 4.2% | -1.6% | 8.6% | 10.0% | 12.3% | 9.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 6.0% | 6.0% | 8.7% | -6.8% | 5.1% | 3.9% | -1.9% | 10.4% | 13.8% | 15.6% | 12.5% |
| ROA | 2.8% | 2.8% | 3.9% | -3.0% | 2.2% | 1.5% | -0.6% | 3.3% | 5.1% | 6.3% | 4.9% |
| ROIC | 5.8% | 5.8% | 7.1% | -1.9% | 4.9% | 3.7% | 0.9% | 6.8% | 9.9% | 11.8% | 9.8% |
| ROCE | 7.2% | 7.2% | 9.1% | -2.4% | 5.9% | 4.2% | 0.9% | 7.3% | 9.9% | 10.9% | 9.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.60 | 0.60 | 0.70 | 0.71 | 0.71 | 0.75 | 0.73 | 1.34 | 0.97 | 0.53 | 0.60 |
| Debt / EBITDA | 3.02 | 3.02 | 3.03 | 16.23 | 4.02 | 5.12 | 6.39 | 4.27 | 3.36 | 1.91 | 2.18 |
| Net Debt / Equity | — | 0.50 | 0.64 | 0.68 | 0.66 | 0.66 | 0.44 | 0.97 | 0.78 | 0.27 | 0.36 |
| Net Debt / EBITDA | 2.51 | 2.51 | 2.78 | 15.39 | 3.75 | 4.54 | 3.87 | 3.10 | 2.72 | 0.98 | 1.30 |
| Debt / FCF | — | 4.62 | 7.02 | 32.67 | — | 48.74 | 7.02 | 10.94 | 9.80 | 3.03 | 3.29 |
| Interest Coverage | 2.70 | 2.70 | 3.65 | -1.17 | 3.27 | 2.42 | 0.28 | 3.43 | 6.80 | 7.56 | 5.99 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.96 | 0.96 | 0.80 | 0.85 | 0.99 | 1.03 | 1.28 | 1.36 | 1.12 | 1.56 | 1.51 |
| Quick Ratio | 0.77 | 0.77 | 0.58 | 0.61 | 0.74 | 0.78 | 1.04 | 1.06 | 0.83 | 1.28 | 1.18 |
| Cash Ratio | 0.23 | 0.23 | 0.11 | 0.07 | 0.10 | 0.17 | 0.35 | 0.46 | 0.24 | 0.46 | 0.40 |
| Asset Turnover | — | 0.44 | 0.42 | 0.44 | 0.38 | 0.35 | 0.34 | 0.43 | 0.46 | 0.49 | 0.51 |
| Inventory Turnover | 7.86 | 7.86 | 5.73 | 5.45 | 5.02 | 4.65 | 3.42 | 4.19 | 4.40 | 5.20 | 4.55 |
| Days Sales Outstanding | — | 86.99 | 89.41 | 102.06 | 123.57 | 129.75 | 124.88 | 117.44 | 103.09 | 106.17 | 123.02 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | 3.3% | 1.7% | 1.8% | 2.0% |
| Payout Ratio | — | — | — | — | — | — | — | 50.7% | 30.3% | 25.9% | 32.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.7% | 3.8% | 5.2% | — | 3.1% | 1.7% | — | 9.2% | 5.6% | 6.9% | 6.1% |
| FCF Yield | 5.1% | 7.0% | 5.8% | 1.4% | — | 0.7% | 2.6% | 4.8% | 3.2% | 4.3% | 5.5% |
| Buyback Yield | 0.1% | 0.1% | 0.3% | 0.0% | 0.0% | 0.0% | 0.0% | 1.5% | 1.6% | 0.9% | 1.0% |
| Total Shareholder Yield | 0.1% | 0.1% | 0.3% | 0.0% | 0.0% | 0.0% | 0.0% | 4.8% | 3.3% | 2.7% | 3.0% |
| Shares Outstanding | — | $322M | $320M | $318M | $318M | $313M | $272M | $268M | $268M | $269M | $270M |
Defense segment margin volatility
According to recent market data, CAE trades at a forward P/E of 21.32, which appears to price in a significant recovery in earnings quality that may be difficult to achieve given the ongoing re-baselining of legacy defense contracts and persistent margin volatility observed in recent quarters.
The current valuation multiple suggests investors are paying a scarcity premium for CAE's role as a dominant training provider, yet this multiple sits uncomfortably high relative to the company's recent ROIC performance of 1.9%. This disconnect implies that the market may be overestimating the speed of margin expansion, warranting a more cautious approach to the stock's growth-adjusted pricing.
Based on reported figures, CAE's ROIC has languished at 1.9% in 2025Q4, a level that significantly trails the performance of peers like TransDigm and HEICO, suggesting that the company's heavy investment in simulator infrastructure is not yet generating the expected returns on invested capital.
The persistent low return on capital indicates that the company's aggressive inorganic growth strategy has yet to yield the anticipated synergies. Investors should monitor whether management can improve asset utilization rates, as the current trend suggests that capital is being deployed into projects that struggle to exceed the company's cost of capital.
As reported in financial statements, CAE's cash conversion cycle has remained volatile, reaching 28 days in 2025Q4, which reflects the inherent difficulty in managing long-cycle defense contracts alongside the more transactional nature of civil aviation simulator sales and maintenance services.
The fluctuation in Days Sales Outstanding, which peaked at 106 days in 2023Q3, suggests that the company faces structural challenges in collecting payments from large-scale government and airline clients. This inefficiency in working capital management directly impacts the company's ability to maintain a consistent cash flow profile, making it more reliant on external financing.
According to recent quarterly filings, CAE maintains a debt-to-EBITDA ratio of 10.15, a figure that appears elevated compared to historical norms and suggests that the company's ability to service its debt is increasingly sensitive to fluctuations in operating performance and interest rate environments.
While the debt-to-equity ratio of 0.60 may seem manageable in isolation, the high debt-to-EBITDA multiple indicates that the company's earnings power is currently insufficient to deleverage rapidly. This leverage profile may constrain management's ability to pursue further acquisitions or invest in next-generation simulation technology without further straining the balance sheet.
Based on an analysis of CAE's business model, the P/E ratio is frequently misapplied by market participants, as it fails to account for the significant non-cash depreciation and amortization charges inherent in a capital-intensive, simulator-heavy business model that requires constant technological reinvestment.
Investors should instead prioritize EV/EBITDA or free cash flow metrics to better understand the company's true operational cash generation. Relying on P/E ratios obscures the impact of the company's heavy capital expenditure requirements, which are essential for maintaining its competitive moat but often depress reported net income.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying CAE stock.
CAE Inc.'s current P/E ratio is 36.5x. The historical average is 25.7x. This places it at the 85th percentile of its historical range.
CAE Inc.'s current EV/EBITDA is 13.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 17.3x.
CAE Inc.'s return on equity (ROE) is 6.0%. The historical average is 12.5%.
Based on historical data, CAE Inc. is trading at a P/E of 36.5x. This is at the 85th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
CAE Inc. has 27.3% gross margin and 12.7% operating margin. Operating margin between 10-20% is typical for established companies.
CAE Inc.'s Debt/EBITDA ratio is 3.0x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.