Historical Valuation
Cerence Inc (CRNC) is now in the Fair zone, suggesting that its current forward PS ratio of 1.71 is considered Fairly compared with the five-year average of 17.07. The fair price of Cerence Inc (CRNC) is between 5.12 to 42.90 according to relative valuation methord.
Relative Value
Fair Zone
5.12-42.90
Current Price:12.35
Fair
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
Cerence Inc (CRNC) has a current Price-to-Book (P/B) ratio of 3.33. Compared to its 3-year average P/B ratio of 1.84 , the current P/B ratio is approximately 81.28% higher. Relative to its 5-year average P/B ratio of 2.09, the current P/B ratio is about 59.06% higher. Cerence Inc (CRNC) has a Forward Free Cash Flow (FCF) yield of approximately 9.01%. Compared to its 3-year average FCF yield of 4.10%, the current FCF yield is approximately 119.71% lower. Relative to its 5-year average FCF yield of 2.93% , the current FCF yield is about 207.79% lower.
P/B
Median3y
1.84
Median5y
2.09
FCF Yield
Median3y
4.10
Median5y
2.93
Competitors Valuation Multiple
AI Analysis for CRNC
The average P/S ratio for CRNC competitors is 0.92, providing a benchmark for relative valuation. Cerence Inc Corp (CRNC.O) exhibits a P/S ratio of 1.71, which is 86.66% above the industry average. Given its robust revenue growth of 10.65%, this premium appears unsustainable.
Performance Decomposition
AI Analysis for CRNC
1Y
3Y
5Y
Market capitalization of CRNC increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of CRNC in the past 1 year is driven by Unknown.
People Also Watch
Frequently Asked Questions
Is CRNC currently overvalued or undervalued?
Cerence Inc (CRNC) is now in the Fair zone, suggesting that its current forward PS ratio of 1.71 is considered Fairly compared with the five-year average of 17.07. The fair price of Cerence Inc (CRNC) is between 5.12 to 42.90 according to relative valuation methord.
What is Cerence Inc (CRNC) fair value?
CRNC'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. The fair price of Cerence Inc (CRNC) is between 5.12 to 42.90 according to relative valuation methord.
How does CRNC's valuation metrics compare to the industry average?
The average P/S ratio for CRNC's competitors is 0.92, providing a benchmark for relative valuation. Cerence Inc Corp (CRNC) exhibits a P/S ratio of 1.71, which is 86.66% above the industry average. Given its robust revenue growth of 10.65%, this premium appears unsustainable.
What is the current P/B ratio for Cerence Inc (CRNC) as of Jan 10 2026?
As of Jan 10 2026, Cerence Inc (CRNC) has a P/B ratio of 3.33. This indicates that the market values CRNC at 3.33 times its book value.
What is the current FCF Yield for Cerence Inc (CRNC) as of Jan 10 2026?
As of Jan 10 2026, Cerence Inc (CRNC) has a FCF Yield of 9.01%. This means that for every dollar of Cerence Inc’s market capitalization, the company generates 9.01 cents in free cash flow.
What is the current Forward P/E ratio for Cerence Inc (CRNC) as of Jan 10 2026?
As of Jan 10 2026, Cerence Inc (CRNC) has a Forward P/E ratio of 14.96. This means the market is willing to pay $14.96 for every dollar of Cerence Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Cerence Inc (CRNC) as of Jan 10 2026?
As of Jan 10 2026, Cerence Inc (CRNC) has a Forward P/S ratio of 1.71. This means the market is valuing CRNC at $1.71 for every dollar of expected revenue over the next 12 months.