CACI International (CACI:NYS) Fundamental Valuation Report

Fundamental Valuation Report

CACI International(CACI:NYS)

Technology:Information Technology Services

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Close Price/Date
$182.28 (USD) 08/11/2018

Weighted Valuation
$172.96 (USD)

Overall Rating
Overvalued by 5.1%

Valuation Models Analyst Consensus: $194.50 (USD)
(in order of importance) Adjusted Book Value: $144.03 (USD)
Multiples: $166.19 (USD)
Valuation Methods This company is:
Cash Flow: Undervalued on a Cash Flow Valuation
Comparable Company: Overvalued on a Comparable Valuation
Asset: Overvalued on an Asset Valuation

Company Overview (CACI:NYS USD)

Price 182.28
Range 179.45 – 182.35
52 week 122.90 – 198.55
Open 181.78
Vol / Avg. 120683/156733
Mkt cap 4.53B
P/E 13.64
Div/yield 0.00/0.00
EPS 11.93
Shares 24.85M
Beta 1.45

Company Description

Founded in 1962 and based in Arlington, Va., CACI provides information technology and engineering services primarily to the U.S. federal government. It also serves state and local governments, foreign governments, and large commercial enterprises. Its service offerings address four broad areas: systems integration, network services, knowledge management, and engineering services. The company employs about 14,500 people in more than 120 offices in the United States and Europe.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for CACI:NYS

Using a discounted cash flow model we generated an intrinsic value of $262.19 (USD) for CACI:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

CACI:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $262.19 1% 5% 1% 5%
WACC (or Ke) 8.82 $328.54 $215.31
Terminal Growth Rate 3.00 $220.13 $321.72
Tax Rate 0.01 $278.60 $245.79
Cash Flow 520,562,000 $245.92 $278.47
Capital Expenditures 0 $262.19 $262.19
Long Term Debt 1,398,681,000 $265.01 $259.38

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $124.15 (USD) for CACI:NYS. We also generated a valuation of $158.63 (USD) using other metrics and comparables.
The comparable companies were EPAM Systems (EPAM:NYS), Leidos Holdings (LDOS:NYS), Insight Enterprises (NSIT:NAS), Science Applications Intl (SAIC:NYS) and Virtusa (VRTU:NAS).

Company CACI:NYS End Date Value
Earnings/Share $13.36 (USD)
Book Value/Share $84.78 (USD)
Sales/Share $176.91 (USD)
Cash Flow/Share $12.87 (USD)
EBITDA/Share $16.32 (USD)
Price Based on Comps Adjustment Factor (%)
$349.36 (USD) -58.2
$378.03 (USD) -67.1
$258.95 (USD) -69.5
$208.21 (USD) -64.6
$258.51 (USD) -15.5
14.96 PE Ratio 26.15 53.57 19.75 15.48 15.80 0.00
2.10 PB Ratio 4.46 5.80 2.81 2.02 8.02 3.65
1.01 PS Ratio 1.46 4.06 1.00 0.26 0.66 1.33
13.86 PCF Ratio 19.43 32.99 12.11 12.90 12.63 26.55
13.15 EV to EBITDA 15.84 24.95 13.15 6.96 11.91 22.24


Using a multiples approach we generated a valuation of  $166.19 (USD) for CACI:NYS

Company CACI:NYS End Date Value
Earnings/Share $13.36 (USD)
Book Value/Share $84.78 (USD)
Sales/Share $176.91 (USD)
Cash Flow/Share $12.87 (USD)
EBITDA/Share $16.32 (USD)
Price Based on Comps Adjustment Factor
$233.28 (USD) 0
$139.09 (USD) 0
$124.99 (USD) 0
$146.12 (USD) 0
$187.50 (USD) 0
Ratios Ratio Average
PE Ratio 17.46
PB Ratio 1.64
PS Ratio 0.71
PCF Ratio 11.35
EV to EBITDA 11.49

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  CACI:NYS for the last 10 years was  1.62

We ran the Adjusted Book Value for  CACI:NYS and generated a book value of  $88.65 (USD)
By multiplying these we get an adjusted valuation of  $144.03 (USD)

Analyst Data

In the Stockcalc database there are 2 analysts that provide a valuation for CACI:NYS. The 2 analysts have a concensus valuation for CACI:NYS for 2019 of $194.50 (USD).

CACI:NYS CACI International

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
1 1 0 4.0000 Outperform 2018-11-7

Current Price: 182.28 USD

Analyst Consensus
USD Millions 2019 2020 2021
Mean EPS 9.71 10.55 11.42
# EPS Analysts 2 2 1
Mean Revenue 4,788.80 5,019.50 5,210.60
# Revenue Analysts 2 2 1
Mean Target Price 194.50
Mean Cash Flow 13.69 14.77 15.18
Mean EBITDA 451.30 480.20 505.40
Mean Net Income 258.20 268.20 290.40
Mean Debt Outstanding 752.10 411.70 60.70
Mean Tax Rate 21.90 24.90
Mean Growth Rate
Mean Capital Expenditure 43.00 35.00 35.00

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

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