CRNC PE Ratio & Valuation,Is CRNC Overvalued

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 1.70 is considered Fairly compared with the five-year average of 17.47. The fair price of Cerence Inc (CRNC) is between 5.08 to 39.61 according to relative valuation methord.

Relative Value

Fair Zone

5.08-39.61

Current Price：11.03

Fair

14.89

11.23

EV/EBITDA

Cerence Inc. (CRNC) has a current EV/EBITDA of 11.23. The 5-year average EV/EBITDA is 16.19. The thresholds are as follows: Strongly Undervalued below -33.23, Undervalued between -33.23 and -8.52, Fairly Valued between 40.90 and -8.52, Overvalued between 40.90 and 65.61, and Strongly Overvalued above 65.61. The current Forward EV/EBITDA of 11.23 falls within the Historic Trend Line -Fairly Valued range.

12.60

EV/EBIT

Cerence Inc. (CRNC) has a current EV/EBIT of 12.60. The 5-year average EV/EBIT is 29.12. The thresholds are as follows: Strongly Undervalued below -43.56, Undervalued between -43.56 and -7.22, Fairly Valued between 65.46 and -7.22, Overvalued between 65.46 and 101.80, and Strongly Overvalued above 101.80. The current Forward EV/EBIT of 12.60 falls within the Historic Trend Line -Fairly Valued range.

1.70

Cerence Inc. (CRNC) has a current PS of 1.70. The 5-year average PS is 4.00. The thresholds are as follows: Strongly Undervalued below -2.66, Undervalued between -2.66 and 0.67, Fairly Valued between 7.33 and 0.67, Overvalued between 7.33 and 10.66, and Strongly Overvalued above 10.66. The current Forward PS of 1.70 falls within the Historic Trend Line -Fairly Valued range.

9.18

P/OCF

Cerence Inc. (CRNC) has a current P/OCF of 9.18. The 5-year average P/OCF is 34.98. The thresholds are as follows: Strongly Undervalued below -39.05, Undervalued between -39.05 and -2.04, Fairly Valued between 71.99 and -2.04, Overvalued between 71.99 and 109.00, and Strongly Overvalued above 109.00. The current Forward P/OCF of 9.18 falls within the Historic Trend Line -Fairly Valued range.

6.99

P/FCF

Cerence Inc. (CRNC) has a current P/FCF of 6.99. The 5-year average P/FCF is -24.36. The thresholds are as follows: Strongly Undervalued below -542.40, Undervalued between -542.40 and -283.38, Fairly Valued between 234.66 and -283.38, Overvalued between 234.66 and 493.68, and Strongly Overvalued above 493.68. The current Forward P/FCF of 6.99 falls within the Historic Trend Line -Fairly Valued range.

Cerence Inc (CRNC) has a current Price-to-Book (P/B) ratio of 3.31. Compared to its 3-year average P/B ratio of 1.80 , the current P/B ratio is approximately 84.44% higher. Relative to its 5-year average P/B ratio of 2.11, the current P/B ratio is about 57.28% higher. Cerence Inc (CRNC) has a Forward Free Cash Flow (FCF) yield of approximately 9.06%. Compared to its 3-year average FCF yield of 3.86%, the current FCF yield is approximately 134.44% lower. Relative to its 5-year average FCF yield of 2.83% , the current FCF yield is about 219.98% lower.

3.31

P/B

Median3y

1.80

Median5y

2.11

9.06

FCF Yield

Median3y

3.86

Median5y

2.83

Competitors Valuation Multiple

The average P/S ratio for CRNC's competitors is 1.08, providing a benchmark for relative valuation. Cerence Inc Corp (CRNC) exhibits a P/S ratio of 1.70, which is 57% above the industry average. Given its robust revenue growth of 10.65%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of CRNC increased by 46.56% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -15.02 to -26.55.

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.

10.65%

54.81M → 60.64M

Revenue Growth

-40.86%

-37.25 → -22.03

Margin Expansion

76.77%

-15.02 → -26.55

P/E Change

46.56%

7.85 → 11.51

Mkt Cap Growth

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Frequently Asked Questions

Is Cerence Inc (CRNC) currently overvalued or undervalued?

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 5.08 to 39.61 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 1.08, providing a benchmark for relative valuation. Cerence Inc Corp (CRNC) exhibits a P/S ratio of 1.70, which is 57.00% 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 Dec 15 2025?

As of Dec 15 2025, Cerence Inc (CRNC) has a P/B ratio of 3.31. This indicates that the market values CRNC at 3.31 times its book value.

What is the current FCF Yield for Cerence Inc (CRNC) as of Dec 15 2025?

As of Dec 15 2025, Cerence Inc (CRNC) has a FCF Yield of 9.06%. This means that for every dollar of Cerence Inc’s market capitalization, the company generates 9.06 cents in free cash flow.

What is the current Forward P/E ratio for Cerence Inc (CRNC) as of Dec 15 2025?

As of Dec 15 2025, Cerence Inc (CRNC) has a Forward P/E ratio of 14.89. This means the market is willing to pay $14.89 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 Dec 15 2025?

As of Dec 15 2025, Cerence Inc (CRNC) has a Forward P/S ratio of 1.70. This means the market is valuing CRNC at $1.70 for every dollar of expected revenue over the next 12 months.

CRNC Valuation