• Wondering if Cadre Holdings at about US$30.31 is starting to look interesting, or if the stock still does not stack up on value? This article walks through what current pricing might be telling you.
• The stock has inched up around 1.8% over the past week and 2.4% over the past month, yet it remains down about 26.3% year to date and 6.3% over the past year, while still showing a 48.2% gain over three years.
• Recent coverage has focused on how Cadre Holdings is positioned within the broader Aerospace & Defense sector and how its share price trend compares with peers. This helps explain some of the shift in sentiment behind those returns. Longer term performance references, including the 48.2% three year return, are also shaping how investors think about what they are paying for the stock today.
• On Simply Wall St’s valuation checks, Cadre Holdings scores a 4 out of 6 valuation score. This sets up a closer look at multiples, cash flow based estimates, and an even more rounded way to think about fair value later in this article.

Approach 1: Cadre Holdings Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model estimates what a stock could be worth by projecting the cash the company may generate in the future and then discounting those amounts back to today.

For Cadre Holdings, Simply Wall St uses a 2 Stage Free Cash Flow to Equity model, starting from last twelve months free cash flow of about $60.9 million. Analyst inputs cover the earlier years, and then cash flows are extrapolated further out. For example, projected free cash flow for 2028 is $103.5 million, and the model includes discounted estimates out to 2035, all expressed in $.

Bringing these projected cash flows back to today gives an estimated intrinsic value of $57.56 per share. Set against the recent share price around $30.31, the model points to a 47.3% implied discount, which suggests the stock screens as undervalued on this DCF view.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Cadre Holdings is undervalued by 47.3%. Track this in your watchlist or portfolio, or discover 49 more high quality undervalued stocks.

Approach 2: Cadre Holdings Price vs Earnings

For a profitable company like Cadre Holdings, the P/E ratio is a straightforward way to think about what you are paying for each dollar of current earnings. Higher growth expectations or lower perceived risk often justify a higher “normal” P/E, while slower growth or higher risk usually support a lower multiple.

Cadre Holdings currently trades on a P/E of about 35.19x. This sits close to the Aerospace & Defense industry average of around 35.63x and below the peer average of roughly 49.70x, so the stock is not standing out as especially expensive or cheap on simple peer comparisons alone.

Simply Wall St’s Fair Ratio introduces a more tailored view. It is a proprietary P/E estimate that reflects factors such as earnings growth, profit margins, industry, company size and specific risks. This makes it more company specific than broad industry or peer averages. For Cadre Holdings, the Fair Ratio is 31.68x, which is modestly below the actual P/E of 35.19x. This suggests the stock is somewhat expensive relative to that Fair Ratio based view.

Result: OVERVALUED

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Upgrade Your Decision Making: Choose your Cadre Holdings Narrative

Earlier it was mentioned that there is an even better way to understand valuation. Narratives are introduced here as a simple way for you to write the story behind your numbers, linking your view on Cadre Holdings to explicit assumptions for future revenue, earnings and margins. These then flow through to a Fair Value that can be compared with the current price on Simply Wall St's Community page, where millions of investors share views that update as new news or earnings arrive. One investor might anchor on a cautious Fair Value of about US$45.0, while another leans toward a more optimistic Fair Value of about US$62.0, reflecting different expectations for how acquisitions, government contracts and safety demand could shape the company over time.

Do you think there's more to the story for Cadre Holdings? Head over to our Community to see what others are saying!

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.