Recent performance context for CACI International (CACI)

CACI International (CACI) has drawn investor attention after a solid run in the stock, with the price at $612.93 and total return figures over the past year and past 3 years standing out.

The recent 1 month share price return of 6.91% and year to date share price return of 14.05% sit alongside a 1 year total shareholder return of 57.16% and 3 year total shareholder return of 113.78%. Together, these figures point to strong momentum over both shorter and longer horizons.

If you are comparing CACI with other opportunities in tech and defense, it can help to widen the lens and review 20 top founder-led companies

With CACI trading at $612.93, an indicated intrinsic discount of 25.05% and an 18.12% gap to analyst targets raise a key question for you: is this a genuine opening, or is the market already pricing in future growth?

Most Popular Narrative: 15% Undervalued

The most followed narrative pegs CACI International's fair value at about $718 per share, above the last close of $612.93, and ties that gap to a detailed set of growth, margin, and discount rate assumptions.

CACI's strategic acquisition activity focuses on high-margin, technology-driven niches like cyber, electronic warfare, and AI, steadily improving its revenue mix, differentiating its offerings, and delivering incremental expansion in EBITDA and earnings over time. Structural trends including rising regulatory complexity, talent scarcity in cleared roles, and increasing government shift toward outcome-based contracting and longer-term relationships, reinforce CACI's competitive moat, supporting pricing power and improved free cash flow conversion.

Curious what sits behind that fair value gap? The narrative leans on steady top line expansion, firmer margins, and a valuation multiple that depends on future earnings power. The key is how those moving parts interact over time rather than any single headline figure.

Result: Fair Value of $718.08 (UNDERVALUED)

However, you also need to weigh CACI's heavy reliance on U.S. government spending and the risk that contract delays or cost pressures could disrupt the earnings path behind that fair value.

Another Angle on CACI’s Valuation

So far, the focus has been on fair value estimates around $718 per share and an intrinsic discount of about 25%. On current numbers though, CACI trades on a P/E of 26.1x versus a fair ratio of 24.7x and an industry average of 18.9x, which suggests the market is already paying up. Does that premium feel comfortable given your expectations for growth and risk?

Next Steps

With rising interest from both risk focused and reward focused investors, it makes sense to understand the details yourself and move quickly to shape your own view. A good place to start is with a clear look at the 3 key rewards and 2 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.