CRNC Relative Valuation
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. If the market price exceeds this fair value range, CRNC is overvalued; if below, it's undervalued.
Historical Valuation
Cerence Inc (CRNC) is now in the Fair zone, suggesting that its current forward PS ratio of 0.00 is considered Fairly compared with the five-year average of 17.57. The fair price of Cerence Inc (CRNC) is between NaN to NaN according to relative valuation methord.
Relative Value
Fair Zone
NaN-NaN
Current Price：12.39
Fair
16.76
PE
1Y
3Y
5Y
Trailing
Forward
11.70
EV/EBITDA
Cerence Inc. (CRNC) has a current EV/EBITDA of 11.70. The 5-year average EV/EBITDA is 16.24. The thresholds are as follows: Strongly Undervalued below -33.20, Undervalued between -33.20 and -8.48, Fairly Valued between 40.97 and -8.48, Overvalued between 40.97 and 65.69, and Strongly Overvalued above 65.69. The current Forward EV/EBITDA of 11.70 falls within the Historic Trend Line -Fairly Valued range.
13.13
EV/EBIT
Cerence Inc. (CRNC) has a current EV/EBIT of 13.13. The 5-year average EV/EBIT is 29.18. The thresholds are as follows: Strongly Undervalued below -43.49, Undervalued between -43.49 and -7.15, Fairly Valued between 65.52 and -7.15, Overvalued between 65.52 and 101.86, and Strongly Overvalued above 101.86. The current Forward EV/EBIT of 13.13 falls within the Historic Trend Line -Fairly Valued range.
1.79
PS
Cerence Inc. (CRNC) has a current PS of 1.79. The 5-year average PS is 4.03. The thresholds are as follows: Strongly Undervalued below -2.65, Undervalued between -2.65 and 0.69, Fairly Valued between 7.37 and 0.69, Overvalued between 7.37 and 10.71, and Strongly Overvalued above 10.71. The current Forward PS of 1.79 falls within the Historic Trend Line -Fairly Valued range.
9.67
P/OCF
Cerence Inc. (CRNC) has a current P/OCF of 9.67. The 5-year average P/OCF is 35.14. The thresholds are as follows: Strongly Undervalued below -38.82, Undervalued between -38.82 and -1.84, Fairly Valued between 72.12 and -1.84, Overvalued between 72.12 and 109.10, and Strongly Overvalued above 109.10. The current Forward P/OCF of 9.67 falls within the Historic Trend Line -Fairly Valued range.
7.35
P/FCF
Cerence Inc. (CRNC) has a current P/FCF of 7.35. The 5-year average P/FCF is -24.23. The thresholds are as follows: Strongly Undervalued below -542.53, Undervalued between -542.53 and -283.38, Fairly Valued between 234.92 and -283.38, Overvalued between 234.92 and 494.07, and Strongly Overvalued above 494.07. The current Forward P/FCF of 7.35 falls within the Historic Trend Line -Fairly Valued range.
Cerence Inc (CRNC) has a current Price-to-Book (P/B) ratio of 3.49. Compared to its 3-year average P/B ratio of 1.77 , the current P/B ratio is approximately 96.56% higher. Relative to its 5-year average P/B ratio of 2.11, the current P/B ratio is about 65.60% higher. Cerence Inc (CRNC) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.75%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.79% , the current FCF yield is about -100.00% lower.
3.73
P/B
Median3y
1.77
Median5y
2.11
8.60
FCF Yield
Median3y
3.75
Median5y
2.79
Competitors Valuation Multiple
The average P/S ratio for CRNC's competitors is 0.00, providing a benchmark for relative valuation. Cerence Inc Corp (CRNC) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 10.65%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of CRNC increased by 64.97% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -16.87 to -29.88.
The secondary factor is the Revenue Growth, contributed 10.65%to the performance.
Overall, the performance of CRNC in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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