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TEM Valuation

Tempus AI Inc
$
57.810
-0.48(-0.823%)1D
  • Overview
  • Forecast
  • Valuation
  • Earnings

TEM Relative Valuation

TEM'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, TEM is overvalued; if below, it's undervalued.

Historical Valuation

Tempus AI Inc (TEM) is now in the Fair zone, suggesting that its current forward PS ratio of 8.10 is considered Fairly compared with the five-year average of -66.35. The fair price of Tempus AI Inc (TEM) is between 54.14 to 73.33 according to relative valuation methord.
Relative Value
Fair Zone
54.14-73.33
Current Price:58.41
Fair
-77.30
PE
1Y
3Y
5Y
Trailing
Forward
8186.40
EV/EBITDA
Tempus AI Inc. (TEM) has a current EV/EBITDA of 8186.40. The 5-year average EV/EBITDA is 331.25. The thresholds are as follows: Strongly Undervalued below -4771.88, Undervalued between -4771.88 and -2220.31, Fairly Valued between 2882.82 and -2220.31, Overvalued between 2882.82 and 5434.39, and Strongly Overvalued above 5434.39. The current Forward EV/EBITDA of 8186.40 falls within the Strongly Overvalued range.
-169.15
EV/EBIT
Tempus AI Inc. (TEM) has a current EV/EBIT of -169.15. The 5-year average EV/EBIT is -145.88. The thresholds are as follows: Strongly Undervalued below -322.56, Undervalued between -322.56 and -234.22, Fairly Valued between -57.54 and -234.22, Overvalued between -57.54 and 30.79, and Strongly Overvalued above 30.79. The current Forward EV/EBIT of -169.15 falls within the Historic Trend Line -Fairly Valued range.
7.62
PS
Tempus AI Inc. (TEM) has a current PS of 7.62. The 5-year average PS is 8.35. The thresholds are as follows: Strongly Undervalued below 5.03, Undervalued between 5.03 and 6.69, Fairly Valued between 10.01 and 6.69, Overvalued between 10.01 and 11.67, and Strongly Overvalued above 11.67. The current Forward PS of 7.62 falls within the Historic Trend Line -Fairly Valued range.
-339.19
P/OCF
Tempus AI Inc. (TEM) has a current P/OCF of -339.19. The 5-year average P/OCF is -164.49. The thresholds are as follows: Strongly Undervalued below -382.20, Undervalued between -382.20 and -273.35, Fairly Valued between -55.63 and -273.35, Overvalued between -55.63 and 53.22, and Strongly Overvalued above 53.22. The current Forward P/OCF of -339.19 falls within the Undervalued range.
63.97
P/FCF
Tempus AI Inc. (TEM) has a current P/FCF of 63.97. The 5-year average P/FCF is -61.31. The thresholds are as follows: Strongly Undervalued below -266.86, Undervalued between -266.86 and -164.08, Fairly Valued between 41.47 and -164.08, Overvalued between 41.47 and 144.25, and Strongly Overvalued above 144.25. The current Forward P/FCF of 63.97 falls within the Overvalued range.
Tempus AI Inc (TEM) has a current Price-to-Book (P/B) ratio of 31.31. Compared to its 3-year average P/B ratio of 95.21 , the current P/B ratio is approximately -67.12% higher. Relative to its 5-year average P/B ratio of 95.21, the current P/B ratio is about -67.12% higher. Tempus AI Inc (TEM) has a Forward Free Cash Flow (FCF) yield of approximately -1.97%. Compared to its 3-year average FCF yield of -3.19%, the current FCF yield is approximately -38.34% lower. Relative to its 5-year average FCF yield of -3.19% , the current FCF yield is about -38.34% lower.
30.67
P/B
Median3y
95.21
Median5y
95.21
-2.09
FCF Yield
Median3y
-3.19
Median5y
-3.19

Competitors Valuation Multiple

The average P/S ratio for TEM's competitors is 224.97, providing a benchmark for relative valuation. Tempus AI Inc Corp (TEM) exhibits a P/S ratio of 7.62, which is -96.61% above the industry average. Given its robust revenue growth of 75.38%, this premium appears sustainable.

Performance Decomposition

1Y
3Y
5Y
Market capitalization of TEM increased by 34.68% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 145.82M to 255.74M.
The secondary factor is the P/E Change, contributed -0.61%to the performance.
Overall, the performance of TEM in the past 1 year is driven by Revenue Growth. Which is more sustainable.
75.38%
145.82M → 255.74M
Revenue Growth
+
-40.09%
-44.40 → -26.60
Margin Expansion
+
-0.61%
-11.82 → -11.75
P/E Change
=
34.68%
43.28 → 58.29
Mkt Cap Growth

FAQ

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Is Tempus AI Inc (TEM) currently overvalued or undervalued?

Tempus AI Inc (TEM) is now in the Fair zone, suggesting that its current forward PS ratio of 8.10 is considered Fairly compared with the five-year average of -66.35. The fair price of Tempus AI Inc (TEM) is between 54.14 to 73.33 according to relative valuation methord.
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What is Tempus AI Inc (TEM) fair value?

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How does TEM's valuation metrics compare to the industry average?

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What is the current P/B ratio for Tempus AI Inc (TEM) as of Jul 31 2025?

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What is the current FCF Yield for Tempus AI Inc (TEM) as of Jul 31 2025?

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What is the current Forward P/E ratio for Tempus AI Inc (TEM) as of Jul 31 2025?

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What is the current Forward P/S ratio for Tempus AI Inc (TEM) as of Jul 31 2025?