Cerence Inc. (CRNC) Valuation — DCF, Graham & Comparables

Cerence Inc. (CRNC) — Price $7.85 TechnologySoftware - Application — NASDAQ

Latest reported results:

Valuation dashboard for Cerence Inc. (CRNC) with P/E N/A, P/B 2.13, EV/EBITDA 10.04 and dividend yield 0.00%. DCF, Graham Number and Earnings Power Value models plus sector comparison against other Technology companies.

Cerence Inc. specializes in developing and providing AI-driven virtual assistants tailored for the global mobility and transportation industry. The company's diverse portfolio includes both embedded (edge) software components and cloud-based solutions, along with relevant development toolkits, applications, and professional services to facilitate virtual assistant coexistence.

Analysis Summary

Cerence Inc. reported revenue of $251.8M in the most recent fiscal year, growing at a 5-year CAGR of -5.3%.

Trailing-twelve-month margins: gross margin 78.7%, operating margin 11.5%, net margin -5.0%.

At the current price of $7.85, CRNC has negative trailing earnings (P/E not meaningful) and an ROE of -9.84%. Market capitalisation stands at $355M.

Balance sheet quality for CRNC: current ratio of 1.8. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.

Valuation Ratios

Price / Book2.13
EV / EBITDA10.04
Dividend Yield0.00%

Valuation Models

DCF Fair Value$-11.38
vs Current Price-244.9%

Peer Comparison

SymbolCompanyMarket CapP/EP/BROE
CRNCCerence Inc.$355M2.13-9.8%
SAPSAP SE$248.4B28.224.9817.6%
SHOP.TOShopify Inc.$235.9B170.7915.849.3%
CRMSalesforce, Inc.$205.2B23.515.5220.2%
SHOPShopify Inc.$168.6B87.9713.3815.1%
0VHA.LShopify Inc.$163.6B
0L5N.LServiceNow, Inc.$146.3B
NOWServiceNow, Inc.$144.6B92.9812.3613.8%

Price

Price$7.85
Market Cap$355M
ExchangeNASDAQ
CountryUS

Profitability

Return on Equity-9.84%
Return on Invested Capital-4.52%
Return on Assets-2.48%
Gross Margin78.69%
Operating Margin11.49%
Net Margin-4.97%

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Explore sector: Technology · Software - Application

More sections of CRNC: Overview · Financials · Statistics · Estimates · Technical · Ownership · News · Events

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