Tempus AI Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: TEM ($53.97) is trading above our estimate of fair value ($49.18)

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


Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for TEM. This is calculated by dividing TEM's market cap by their current revenue.
What is TEM's PS Ratio?
PS Ratio13.3x
SalesUS$640.44m
Market CapUS$8.50b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for TEM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.6x
MEDP Medpace Holdings
4.7x10.0%US$9.8b
BRKR Bruker
2.3x7.1%US$7.3b
CRL Charles River Laboratories International
2.3x4.4%US$9.5b
TECH Bio-Techne
9x8.8%US$10.5b
TEM Tempus AI
13.3x23.7%US$8.5b

Price-To-Sales vs Peers: TEM is expensive based on its Price-To-Sales Ratio (13.3x) compared to the peer average (4.6x).


Price to Sales Ratio vs Industry

How does TEM's PS Ratio compare vs other companies in the US Life Sciences Industry?

10 CompaniesPrice / SalesEstimated GrowthMarket Cap
FTRE Fortrea Holdings
0.6x2.4%US$1.68b
ATLN Atlantic International
0.6xn/aUS$253.24m
NOTV Inotiv
0.1x7.5%US$72.55m
SNCE Science 37 Holdings
0.6x17.5%US$34.67m
TEM 13.3xIndustry Avg. 3.1xNo. of Companies10PS02.85.68.411.214+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: TEM is expensive based on its Price-To-Sales Ratio (13.3x) compared to the US Life Sciences industry average (3.1x).


Price to Sales Ratio vs Fair Ratio

What is TEM'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.

TEM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio13.3x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate TEM'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?

The above table shows the analyst TEM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$53.97
US$57.14
+5.9%
12.5%US$70.00US$50.00n/a7
Nov ’25US$46.06
US$50.00
+8.6%
13.6%US$60.00US$40.00n/a8
Oct ’25US$53.07
US$46.00
-13.3%
6.0%US$50.00US$40.00n/a8
Sep ’25US$59.38
US$46.00
-22.5%
6.0%US$50.00US$40.00n/a8
Aug ’25US$39.28
US$45.29
+15.3%
6.6%US$50.00US$41.00n/a7

Analyst Forecast: Target price is less than 20% higher than the current share price.


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