Stock fact sheet · data as of
CAE Inc. (CAE): fair value, margin of safety and Wheel Score
Industrials · Aerospace & Defense · Canada · Blend
Is CAE undervalued?
At 23.91 (close of 16 Oct 2026), CAE trades within a few percent of the GLS average fair value of 24.87 (3.9% below fair value). 8 models produced a value and they split 3 above the price to 5 below. A stock priced at fair value earns about half of the Wheel Score's Value points; the rest of the score comes from health, moat, premium and stability.
There is a wide gap between EPV (6.99) and 10 Cap (52.82). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files CAE under Blend.
Nine valuation models for CAE
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 16.30 | -32% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 18.38 | -23% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 28.30 | +18% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 11.80 | -51% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 16.60 | -31% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 52.82 | +121% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 47.82 | +100% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 6.99 | -71% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -10.89 | -146% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 30.00 | +25% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
CAE Inc. scores 9 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 3.4/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC 3.7%, ROE 5.9%, ROA 2.8% - with debt at 0.61 times equity and a free-cash-flow yield of 6.7%.
CAE Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Training and Services 60%, Products 40% (fiscal year FY2025).
Institutional ownership scores 9/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 9 / 9 | ROIC | 3.7% |
|---|---|---|---|
| GLS Moat | 3.4 / 10 | ROE | 5.9% |
| Debt / equity | 0.61 | ROA | 2.8% |
| Free-cash-flow yield | 6.7% | Payout ratio | 0% |
| Institutions | 9 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 76: Good
With a Wheel Score of 76 - the Good band - CAE Inc. clears the Sunday Scan's "70 or higher" rule. The parts: Value 14/25, Health 20/20, Moat 5/15, Premium 20/20, Stability 16/20; Moat (5/15) scores lowest.
Implied volatility is 46% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 1,017 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 594k shares a day on a market cap of $7.7B, with a beta of 1.02; the Stability part of the Wheel Score gives that 16 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 14 / 25 | 4% margin of safety | |
| Health | 20 / 20 | Piotroski 9/9 | |
| Moat | 5 / 15 | moat 3.4/10 | |
| Premium | 20 / 20 | implied volatility 46% | |
| Stability | 16 / 20 | 594k shares/day, $7.7B cap, beta 1.02 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 10 Nov 2026 (after the close), 25 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Aerospace & Defense
The 12 companies below are the closest to CAE Inc. by market cap within the Aerospace & Defense industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| KTOS Kratos Defense & Security Solutions, Inc. | 40.74 | 5.79 | -604% | 55Fair | $7.6B |
| HXL Hexcel Corporation | 89.86 | 53.30 | -69% | 58Fair | $6.8B |
| SARO StandardAero, Inc. | 19.76 | 25.77 | +23% | 87Prime | $6.5B |
| AVAV AeroVironment, Inc. | 123.22 | 3.54 | -3378% | 45Weak | $6.3B |
| DRS Leonardo DRS, Inc. | 35.47 | 29.97 | -18% | 68Good | $9.5B |
| LOAR Loar Holdings Inc. | 62.74 | 26.80 | -134% | 56Fair | $5.9B |
| HII Huntington Ingalls Industries, Inc. | 267.22 | 290.42 | +8% | 72Good | $10.5B |
| BWXT BWX Technologies, Inc. | 137.20 | 74.35 | -85% | 61Fair | $12.6B |
| PL Planet Labs PBC | 14.13 | 3.15 | -348% | 43Weak | $4.7B |
| AMTM Amentum Holdings, Inc. | 19.09 | 30.89 | +38% | 85Prime | $4.7B |
| TXT Textron Inc. | 73.80 | 67.48 | -9% | 70Good | $12.7B |
| MRCY Mercury Systems, Inc. | 76.41 | 13.54 | -464% | 41Weak | $4.7B |
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Start free See the Sunday ScanQuestions about CAE
Is CAE undervalued right now?
Not meaningfully: at 23.91 the stock trades within a few percent of the GLS average fair value of 24.87 (3.9% below fair value, data as of 16 Oct 2026).
What is the Wheel Score of CAE and what does it mean?
CAE scores 76 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for CAE?
24.87 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does CAE Inc. report earnings next?
The next earnings report is due on 10 Nov 2026 (after the close), 25 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does CAE have listed options, and how liquid are they?
Yes. The nightly snapshot found 80 listed contracts with 1,017 open interest across all expiries and implied volatility of 46% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.