CRNC

Cerence Inc

Exchange: NASDAQSector: TechnologyIndustry: Software - Application

Cerence Inc. is a global industry leader in creating intuitive, seamless, AI-powered experiences across automotive and transportation. Leveraging decades of innovation and expertise in voice, generative AI, and large language models, Cerence powers integrated experiences that create safer, more connected, and more enjoyable journeys for drivers and passengers alike. With more than 500 million cars shipped with Cerence technology, the company partners with leading automakers, transportation OEMs, and technology companies to advance the next generation of user experiences. Cerence is headquartered in Burlington, Massachusetts, with operations globally and a worldwide team dedicated to pushing the boundaries of AI innovation.

Current Price

$9.79

-6.05%

GoodMoat Value

$21.75

122.2% undervalued

Profile

Valuation (TTM)

Market Cap$440.73M

P/E-22.43

EV—

P/B2.92

Shares Out45.02M

P/Sales1.46

Revenue$302.14M

EV/EBITDA13.75

Cerence Inc (CRNC) Valuation

CRNC Fair Value Estimate

$21.75122.2% undervalued

Blended fair value estimate based on DCF, Graham Number, and earnings-based models.

CRNC Valuation Metrics

FCF$46.82M

FCF Growth Rate-9.20%

EPS Growth (CAGR)-50.00%

WACC10.00%

Fair Value Models

Graham Number, PEG-based, and Earnings-based models

View Fair Value →

CRNC Valuation & Fair Value Analysis

Cerence Inc (CRNC) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.

The GoodMoat Fair Value target for Cerence Inc is $21.75. The current stock price is $9.79, suggesting the stock is 122.2% undervalued.

The price-to-earnings (P/E) ratio is -22.43. Price-to-book ratio is 2.92. Price-to-sales ratio is 1.46. Enterprise value to EBITDA is 13.75. PEG ratio is 0.24.

GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Cerence Inc's intrinsic value.