Cerence Inc.

BOVESPA:C2RN34 Stock Report

Market Cap: R$3.2b

Cerence Valuation

Is C2RN34 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of C2RN34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
R$18.67
Fair Value
12.9% overvalued intrinsic discount
6
Number of Analysts

Below Fair Value: C2RN34 (R$21.08) is trading above our estimate of fair value (R$18.67)

Significantly Below Fair Value: C2RN34 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for C2RN34?

Key metric: As C2RN34 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for C2RN34. This is calculated by dividing C2RN34's market cap by their current revenue.
What is C2RN34's PS Ratio?
PS Ratio2.6x
SalesUS$244.07m
Market CapUS$550.36m

Price to Sales Ratio vs Peers

How does C2RN34's PS Ratio compare to its peers?

The above table shows the PS ratio for C2RN34 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.5x
NGRD3 Neogrid Participações
0.7x13.2%R$176.6m
CLSA3 ClearSale
4xn/aR$1.9b
LWSA3 Locaweb Serviços de Internet
1.2x9.1%R$1.7b
TOTS3 TOTVS
4x12.7%R$19.6b
C2RN34 Cerence
2.6x4.6%R$550.4m

Price-To-Sales vs Peers: C2RN34 is expensive based on its Price-To-Sales Ratio (2.6x) compared to the peer average (2.5x).

Price to Sales Ratio vs Industry

How does C2RN34's PS Ratio compare vs other companies in the Global Software Industry?

234 CompaniesPrice / SalesEstimated GrowthMarket Cap
C2RN34 2.6xIndustry Avg. 3.3xNo. of Companies234PS02.85.68.411.214+
234 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: C2RN34 is good value based on its Price-To-Sales Ratio (2.6x) compared to the Global Software industry average (3.3x).

Price to Sales Ratio vs Fair Ratio

What is C2RN34's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

C2RN34 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.6x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate C2RN34's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Price Target
Consensus Narrative from 6 Analysts
R$16.98
Fair Value
24.1% overvalued intrinsic discount
6
Number of Analysts

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/07 13:11
End of Day Share Price 2025/02/07 00:00
Earnings2024/12/31
Annual Earnings2024/09/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Cerence Inc. is covered by 13 analysts. 6 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Michael FilatovBerenberg
Jeffrey Van RheeCraig-Hallum Capital Group LLC
Christopher McNallyEvercore ISI