CRNC Valuation

Cerence Inc

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9.160

+0.04(0.439%)1D

Overview
Forecast
Valuation
Earnings

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 Undervalued zone, suggesting that its current forward PS ratio of 0.00 is considered Undervalued compared with the five-year average of 14.97. The fair price of Cerence Inc (CRNC) is between +Inf to +Inf according to relative valuation methord. Compared to the current price of 9.16 USD , Cerence Inc is Undervalued By Fair.

Relative Value

Fair Zone

+Inf-+Inf

Current Price：9.16

Fair

Undervalued

22.94

Trailing

Forward

19.63

EV/EBITDA

Cerence Inc. (CRNC) has a current EV/EBITDA of 19.63. The 5-year average EV/EBITDA is 16.67. The thresholds are as follows: Strongly Undervalued below -32.92, Undervalued between -32.92 and -8.12, Fairly Valued between 41.47 and -8.12, Overvalued between 41.47 and 66.27, and Strongly Overvalued above 66.27. The current Forward EV/EBITDA of 19.63 falls within the Historic Trend Line -Fairly Valued range.

22.73

EV/EBIT

Cerence Inc. (CRNC) has a current EV/EBIT of 22.73. The 5-year average EV/EBIT is 29.71. The thresholds are as follows: Strongly Undervalued below -43.35, Undervalued between -43.35 and -6.82, Fairly Valued between 66.24 and -6.82, Overvalued between 66.24 and 102.76, and Strongly Overvalued above 102.76. The current Forward EV/EBIT of 22.73 falls within the Historic Trend Line -Fairly Valued range.

1.60

Cerence Inc. (CRNC) has a current PS of 1.60. The 5-year average PS is 4.31. The thresholds are as follows: Strongly Undervalued below -2.34, Undervalued between -2.34 and 0.99, Fairly Valued between 7.64 and 0.99, Overvalued between 7.64 and 10.96, and Strongly Overvalued above 10.96. The current Forward PS of 1.60 falls within the Historic Trend Line -Fairly Valued range.

9.30

P/OCF

Cerence Inc. (CRNC) has a current P/OCF of 9.30. The 5-year average P/OCF is 36.53. The thresholds are as follows: Strongly Undervalued below -36.28, Undervalued between -36.28 and 0.13, Fairly Valued between 72.94 and 0.13, Overvalued between 72.94 and 109.35, and Strongly Overvalued above 109.35. The current Forward P/OCF of 9.30 falls within the Historic Trend Line -Fairly Valued range.

13.53

P/FCF

Cerence Inc. (CRNC) has a current P/FCF of 13.53. The 5-year average P/FCF is -22.99. The thresholds are as follows: Strongly Undervalued below -541.56, Undervalued between -541.56 and -282.28, Fairly Valued between 236.30 and -282.28, Overvalued between 236.30 and 495.59, and Strongly Overvalued above 495.59. The current Forward P/FCF of 13.53 falls within the Historic Trend Line -Fairly Valued range.

Cerence Inc (CRNC) has a current Price-to-Book (P/B) ratio of 2.61. Compared to its 3-year average P/B ratio of 1.53 , the current P/B ratio is approximately 70.65% higher. Relative to its 5-year average P/B ratio of 2.06, the current P/B ratio is about 27.01% 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 2.53%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.21% , the current FCF yield is about -100.00% lower.

2.61

P/B

Median3y

1.53

Median5y

2.06

10.56

FCF Yield

Median3y

2.53

Median5y

2.21

Competitors Valuation Multiple

The average P/S ratio for CRNC's competitors is 1.89, providing a benchmark for relative valuation. Cerence Inc Corp (CRNC) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of -29.98%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Gorilla Technology Group Inc

Lesaka Technologies Inc

0.60

-1.83%

381.06M

Performance Decomposition

Market capitalization of CRNC increased by 177.58% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -4.02 to -15.62.

The secondary factor is the Revenue Growth, contributed -11.77%to the performance.

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

-11.77%

70.54M → 62.24M

Revenue Growth

-99.02%

-444.50 → -4.37

Margin Expansion

288.37%

-4.02 → -15.62

P/E Change

177.58%