Cerence Inc.

BMV:CRNC * Stock Report

Market Cap: Mex$2.5b

Cerence Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: CRNC * (MX$50) is trading below our estimate of fair value (MX$279.21)

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

Key Valuation Metric

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

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

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

Price to Sales Ratio vs Peers

How does CRNC *'s PS Ratio compare to its peers?

The above table shows the PS ratio for CRNC * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.9x
CMCM Cheetah Mobile
1.3xn/aUS$128.6m
418 Founder Holdings
1.1xn/aHK$1.0b
7781 TPIsoftware
5.3xn/aNT$4.3b
532348 Subex
4.1xn/a₹12.7b
CRNC * Cerence
0.3x-15.4%Mex$122.5m

Price-To-Sales vs Peers: CRNC * is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (2.9x).

Price to Sales Ratio vs Industry

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

251 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.n/a0%
CRNC * Cerence
 0.3x-15.4%US$122.49m
No. of Companies250PS02.85.68.411.214+
251 CompaniesEstimated GrowthMarket Cap
Industry Avg.n/a0%
CRNC * Cerence
 0.3x101.8%US$122.49m
No more companies

Price-To-Sales vs Industry: CRNC * is good value based on its Price-To-Sales Ratio (0.3x) compared to the Global Software industry average (3.1x).

Price to Sales Ratio vs Fair Ratio

What is CRNC *'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.

CRNC * PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate CRNC *'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 Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Global Dominion Access

€410.2m

Provides integral services for business process efficiency and sustainability worldwide.

DOM N

€57.80

7D

-0.9%

1Y

n/a

Qualys

US$5.3b

Provides cloud-based platform delivering information technology (IT), security, and compliance solutions in the United States and internationally.

QLYS *

US$2,440.00

7D

0%

1Y

-19.0%

Datadog

US$42.8b

Operates an observability and security platform for cloud applications in North America and internationally.

DDOG *

US$2,680.00

7D

7.6%

1Y

41.0%