CAE Inc.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF (CAD converted to USD at 0.73): CAD490M normalized FY2026 free cash flow base ($358M); 7% FCF growth years 1-5; 5% years 6-10; 9.5% discount rate; 3% terminal growth; -$1,958M net debt (CAD2,682M); 320.46M shares outstanding.

Reasoning: CAE is a mature, moderately-levered aerospace/defense simulation-and-training company with a large, stable defense backlog and a multi-year FCF ramp, supporting a standard DCF, but a somewhat higher discount rate and explicit net-debt deduction are used to reflect its leverage (~2.3x net debt/EBITDA) and the execution risk in its newly announced cost-transformation plan.