Cerence Inc.

NasdaqGS:CRNC Stock Report

Market Cap: US$124.2m

Cerence Valuation

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

Below Fair Value: CRNC ($2.97) is trading below our estimate of fair value ($20.19)

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$124.16m

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 Average1.2x
CMCM Cheetah Mobile
1.3xn/aUS$128.6m
APPS Digital Turbine
0.3x5.9%US$125.5m
CCRD CoreCard
2.6x11.3%US$141.4m
MAPS WM Technology
0.6x5.9%US$201.0m
CRNC Cerence
0.3x-15.4%US$124.2m

Price-To-Sales vs Peers: CRNC is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (1.2x).

Price to Sales Ratio vs Industry

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

82 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.5.1x12.3%
CRNC Cerence
 0.3x-15.4%US$124.16m
VYX NCR Voyix
0.6x-23.2%US$2.04b
PGY Pagaya Technologies
0.7x15.8%US$634.91m
CRNC 0.3xIndustry Avg. 5.1xNo. of Companies82PS048121620+
82 CompaniesEstimated GrowthMarket Cap
Industry Avg.5.1x17.0%
CRNC Cerence
 0.3x101.8%US$124.16m
No more companies

Price-To-Sales vs Industry: CRNC is good value based on its Price-To-Sales Ratio (0.3x) compared to the US Software industry average (5.1x).

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 Ratio0.8x

Price-To-Sales vs Fair Ratio: CRNC is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (0.8x).

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 CRNC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$2.97
US$4.93
+65.8%
49.2%US$10.00US$2.75n/a6
Nov ’25US$3.06
US$4.93
+60.9%
49.2%US$10.00US$2.75n/a6
Oct ’25US$2.97
US$5.09
+71.4%
48.2%US$10.00US$2.75n/a6
Sep ’25US$3.30
US$5.13
+55.6%
47.1%US$10.00US$3.00n/a6
Aug ’25US$2.88
US$6.75
+134.4%
41.4%US$12.00US$3.00n/a6
Jul ’25US$2.84
US$8.08
+184.6%
23.8%US$12.00US$6.00n/a6
Jun ’25US$3.44
US$8.08
+135.0%
23.8%US$12.00US$6.00n/a6
May ’25US$9.29
US$21.50
+131.4%
16.1%US$27.00US$15.00n/a8
Apr ’25US$15.36
US$22.13
+44.0%
11.6%US$27.00US$19.00n/a8
Mar ’25US$14.82
US$22.13
+49.3%
11.6%US$27.00US$19.00n/a8
Feb ’25US$20.19
US$21.75
+7.7%
11.0%US$25.00US$19.00n/a8
Jan ’25US$19.66
US$21.75
+10.6%
11.0%US$25.00US$19.00n/a8
Dec ’24US$17.58
US$23.38
+33.0%
17.5%US$32.00US$19.00n/a8
Nov ’24US$14.84
US$31.00
+108.9%
14.3%US$38.00US$24.00US$3.068
Oct ’24US$20.37
US$32.38
+58.9%
9.1%US$38.00US$28.00US$2.978
Sep ’24US$25.77
US$32.38
+25.6%
9.1%US$38.00US$28.00US$3.308
Aug ’24US$27.80
US$32.88
+18.3%
16.2%US$42.00US$26.00US$2.888
Jul ’24US$29.23
US$32.13
+9.9%
18.3%US$42.00US$26.00US$2.848
Jun ’24US$28.53
US$32.13
+12.6%
18.3%US$42.00US$26.00US$3.448
May ’24US$25.80
US$33.50
+29.8%
14.8%US$42.00US$26.00US$9.298
Apr ’24US$28.09
US$33.00
+17.5%
14.8%US$42.00US$26.00US$15.369
Mar ’24US$26.81
US$33.00
+23.1%
14.8%US$42.00US$26.00US$14.829
Feb ’24US$26.40
US$25.89
-1.9%
25.5%US$40.00US$19.00US$20.199
Jan ’24US$18.53
US$24.80
+33.8%
27.6%US$40.00US$18.00US$19.6610
Dec ’23US$20.46
US$24.80
+21.2%
27.6%US$40.00US$18.00US$17.5810
Nov ’23US$16.76
US$26.10
+55.7%
32.9%US$48.00US$17.00US$14.8410

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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