CERT Valuation

Certara Inc

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11.180

+0.16(1.452%)1D

Overview
Forecast
Valuation
Earnings

CERT Relative Valuation

CERT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, CERT is overvalued; if below, it's undervalued.

Historical Valuation

Certara Inc (CERT) is now in the Fair zone, suggesting that its current forward PE ratio of 22.19 is considered Fairly compared with the five-year average of 51.53. The fair price of Certara Inc (CERT) is between 8.20 to 37.29 according to relative valuation methord.

Relative Value

Fair Zone

8.20-37.29

Current Price：11.18

Fair

22.19

Trailing

Forward

14.00

EV/EBITDA

Certara Inc. (CERT) has a current EV/EBITDA of 14.00. The 5-year average EV/EBITDA is 26.38. The thresholds are as follows: Strongly Undervalued below 2.95, Undervalued between 2.95 and 14.66, Fairly Valued between 38.09 and 14.66, Overvalued between 38.09 and 49.80, and Strongly Overvalued above 49.80. The current Forward EV/EBITDA of 14.00 falls within the Undervalued range.

16.41

EV/EBIT

Certara Inc. (CERT) has a current EV/EBIT of 16.41. The 5-year average EV/EBIT is 31.71. The thresholds are as follows: Strongly Undervalued below -6.31, Undervalued between -6.31 and 12.70, Fairly Valued between 50.72 and 12.70, Overvalued between 50.72 and 69.74, and Strongly Overvalued above 69.74. The current Forward EV/EBIT of 16.41 falls within the Historic Trend Line -Fairly Valued range.

4.04

Certara Inc. (CERT) has a current PS of 4.04. The 5-year average PS is 8.97. The thresholds are as follows: Strongly Undervalued below 0.22, Undervalued between 0.22 and 4.60, Fairly Valued between 13.35 and 4.60, Overvalued between 13.35 and 17.72, and Strongly Overvalued above 17.72. The current Forward PS of 4.04 falls within the Undervalued range.

0.00

P/OCF

Certara Inc. (CERT) has a current P/OCF of 0.00. The 5-year average P/OCF is 36.21. The thresholds are as follows: Strongly Undervalued below -16.37, Undervalued between -16.37 and 9.92, Fairly Valued between 62.50 and 9.92, Overvalued between 62.50 and 88.79, and Strongly Overvalued above 88.79. The current Forward P/OCF of 0.00 falls within the Undervalued range.

0.00

P/FCF

Certara Inc. (CERT) has a current P/FCF of 0.00. The 5-year average P/FCF is 47.33. The thresholds are as follows: Strongly Undervalued below -11.49, Undervalued between -11.49 and 17.92, Fairly Valued between 76.74 and 17.92, Overvalued between 76.74 and 106.15, and Strongly Overvalued above 106.15. The current Forward P/FCF of 0.00 falls within the Undervalued range.

Certara Inc (CERT) has a current Price-to-Book (P/B) ratio of 1.65. Compared to its 3-year average P/B ratio of 2.27 , the current P/B ratio is approximately -27.23% higher. Relative to its 5-year average P/B ratio of 3.21, the current P/B ratio is about -48.47% higher. Certara Inc (CERT) has a Forward Free Cash Flow (FCF) yield of approximately 5.67%. Compared to its 3-year average FCF yield of 3.42%, the current FCF yield is approximately 65.89% lower. Relative to its 5-year average FCF yield of 2.65% , the current FCF yield is about 113.77% lower.

1.65

P/B

Median3y

2.27

Median5y

3.21

5.67

FCF Yield

Median3y

3.42

Median5y

2.65

Competitors Valuation Multiple

The average P/S ratio for CERT's competitors is 2.77, providing a benchmark for relative valuation. Certara Inc Corp (CERT) exhibits a P/S ratio of 4.04, which is 46.13% above the industry average. Given its robust revenue growth of 12.06%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Liveramp Holdings Inc

Slide Insurance Holdings Inc

Performance Decomposition

Market capitalization of CERT decreased by 8.73% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 134.41 to 222.12.

The secondary factor is the Revenue Growth, contributed 12.06%to the performance.

Overall, the performance of CERT in the past 1 year is driven by P/E Change. Which is more unsustainable.

12.06%

93.31M → 104.57M

Revenue Growth

-86.05%

-13.48 → -1.88

Margin Expansion

65.26%

134.41 → 222.12

P/E Change

-8.73%