Cerence Inc.

DB:0S6 Stock Report

Market Cap: €115.6m

Cerence Valuation

Is 0S6 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 0S6 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0S6 (€2.63) is trading below our estimate of fair value (€19.11)

Significantly Below Fair Value: 0S6 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0S6?

Key metric: As 0S6 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 0S6. This is calculated by dividing 0S6's market cap by their current revenue.
What is 0S6's PS Ratio?
PS Ratio0.3x
SalesUS$357.46m
Market CapUS$122.49m

Price to Sales Ratio vs Peers

How does 0S6's PS Ratio compare to its peers?

The above table shows the PS ratio for 0S6 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.6x
BSS Beta Systems Software
1.6x9.1%€110.4m
SJJ Serviceware
1.2x8.8%€125.0m
ESY Easy Software
1.8xn/a€94.1m
OSP2 USU Software
1.7x8.2%€225.8m
0S6 Cerence
0.3x-15.4%€122.5m

Price-To-Sales vs Peers: 0S6 is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (1.6x).

Price to Sales Ratio vs Industry

How does 0S6's PS Ratio compare vs other companies in the DE Software Industry?

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.1.8x10.6%
0S6 Cerence
 0.3x-15.4%US$122.49m
CSH CENIT
0.3x5.5%US$70.93m
CLIQ Cliq Digital
0.09x12.9%US$26.73m
0S6 0.3xIndustry Avg. 1.8xNo. of Companies8PS02.44.87.29.612+
7 CompaniesEstimated GrowthMarket Cap
Industry Avg.1.8x39.7%
0S6 Cerence
 0.3x101.8%US$122.49m
No more companies

Price-To-Sales vs Industry: 0S6 is good value based on its Price-To-Sales Ratio (0.3x) compared to the German Software industry average (1.8x).

Price to Sales Ratio vs Fair Ratio

What is 0S6'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.

0S6 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ratio0.9x

Price-To-Sales vs Fair Ratio: 0S6 is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).

Analyst Price Targets

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

The above table shows the analyst 0S6 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€2.63
€4.50
+71.3%
49.2%€9.14€2.51n/a6
Nov ’25€2.83
€4.50
+59.0%
49.2%€9.14€2.51n/a6
Oct ’25€2.68
€4.60
+71.4%
48.2%€9.03€2.48n/a6
Sep ’25€3.04
€4.70
+54.8%
47.1%€9.16€2.75n/a6
Aug ’25€2.80
€6.19
+120.9%
41.4%€11.00€2.75n/a6
Jul ’25€2.61
€7.43
+184.6%
23.8%€11.04€5.52n/a6
Jun ’25€3.16
€7.43
+135.2%
23.8%€11.04€5.52n/a6
May ’25€8.84
€20.24
+129.0%
16.1%€25.42€14.12n/a8
Apr ’25€14.32
€20.54
+43.4%
11.6%€25.06€17.64n/a8
Mar ’25€13.55
€20.54
+51.5%
11.6%€25.06€17.64n/a8
Feb ’25€18.29
€20.08
+9.8%
11.0%€23.08€17.54n/a8
Jan ’25€18.62
€20.08
+7.8%
11.0%€23.08€17.54n/a8
Dec ’24€15.56
€21.28
+36.7%
17.5%€29.13€17.30n/a8
Nov ’24€14.75
€29.31
+98.7%
14.3%€35.93€22.69€2.838
Oct ’24n/a
€30.37
0%
9.1%€35.64€26.26€2.688
Sep ’24€23.69
€29.57
+24.8%
9.1%€34.71€25.58€3.048
Aug ’24€24.62
€29.52
+19.9%
16.2%€37.71€23.35€2.808
Jul ’24n/a
€29.26
0%
18.3%€38.25€23.68€2.618
Jun ’24€26.26
€29.26
+11.4%
18.3%€38.25€23.68€3.168
May ’24€22.70
€30.50
+34.4%
14.8%€38.23€23.67€8.848
Apr ’24€24.18
€30.90
+27.8%
14.8%€39.33€24.35€14.329
Mar ’24n/a
€30.90
0%
14.8%€39.33€24.35€13.559
Feb ’24n/a
€23.82
0%
25.5%€36.80€17.48€18.299
Jan ’24€17.13
€23.80
+39.0%
27.6%€38.39€17.28€18.6210
Dec ’23€19.08
€23.80
+24.7%
27.6%€38.39€17.28€15.5610
Nov ’23€16.63
€26.69
+60.5%
32.9%€49.09€17.39€14.7510

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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