Cerence Stock Market Value
| CRNC Stock | USD 19.33 11.40 143.76% |
| Symbol | Cerence |
Cerence Price To Book Ratio
Is Systems Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cerence. If investors know Cerence will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cerence listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.10) | Earnings Share (14.12) | Revenue Per Share | Quarterly Revenue Growth 0.144 | Return On Assets |
The market value of Cerence is measured differently than its book value, which is the value of Cerence that is recorded on the company's balance sheet. Investors also form their own opinion of Cerence's value that differs from its market value or its book value, called intrinsic value, which is Cerence's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cerence's market value can be influenced by many factors that don't directly affect Cerence's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cerence's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cerence is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cerence's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Cerence 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Cerence's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Cerence.
| 12/06/2024 |
| 01/05/2025 |
If you would invest 0.00 in Cerence on December 6, 2024 and sell it all today you would earn a total of 0.00 from holding Cerence or generate 0.0% return on investment in Cerence over 30 days. Cerence is related to or competes with Alkami Technology, ADEIA P, Paycor HCM, Blackbaud, DoubleVerify Holdings, Braze, and Paylocity Holdng. Cerence Inc. provides AI powered virtual assistants for the mobilitytransportation market worldwide More
Cerence Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Cerence's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Cerence upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 5.37 | |||
| Information Ratio | 0.1916 | |||
| Maximum Drawdown | 116.26 | |||
| Value At Risk | (8.36) | |||
| Potential Upside | 23.5 |
Cerence Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Cerence's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Cerence's standard deviation. In reality, there are many statistical measures that can use Cerence historical prices to predict the future Cerence's volatility.| Risk Adjusted Performance | 0.1659 | |||
| Jensen Alpha | 4.38 | |||
| Total Risk Alpha | 4.1 | |||
| Sortino Ratio | 0.8261 | |||
| Treynor Ratio | 0.8176 |
Cerence Backtested Returns
Cerence is very risky given 3 months investment horizon. Cerence secures Sharpe Ratio (or Efficiency) of 0.18, which signifies that the company had a 0.18% return per unit of risk over the last 3 months. We were able to interpolate thirty different technical indicators, which can help you to evaluate if expected returns of 4.16% are justified by taking the suggested risk. Use Cerence Downside Deviation of 5.37, risk adjusted performance of 0.1659, and Mean Deviation of 10.36 to evaluate company specific risk that cannot be diversified away. Cerence holds a performance score of 14 on a scale of zero to a hundred. The firm shows a Beta (market volatility) of 5.44, which signifies a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Cerence will likely underperform. Use Cerence sortino ratio, semi variance, rate of daily change, as well as the relationship between the value at risk and kurtosis , to analyze future returns on Cerence.
Auto-correlation | 0.02 |
Virtually no predictability
Cerence has virtually no predictability. Overlapping area represents the amount of predictability between Cerence time series from 6th of December 2024 to 21st of December 2024 and 21st of December 2024 to 5th of January 2025. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Cerence price movement. The serial correlation of 0.02 indicates that only 2.0% of current Cerence price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.02 | |
| Spearman Rank Test | -0.58 | |
| Residual Average | 0.0 | |
| Price Variance | 21.67 |
Cerence lagged returns against current returns
Autocorrelation, which is Cerence stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Cerence's stock expected returns. We can calculate the autocorrelation of Cerence returns to help us make a trade decision. For example, suppose you find that Cerence has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Cerence regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Cerence stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Cerence stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Cerence stock over time.
Current vs Lagged Prices |
| Timeline |
Cerence Lagged Returns
When evaluating Cerence's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Cerence stock have on its future price. Cerence autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Cerence autocorrelation shows the relationship between Cerence stock current value and its past values and can show if there is a momentum factor associated with investing in Cerence.
Regressed Prices |
| Timeline |
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Check out Cerence Correlation, Cerence Volatility and Cerence Alpha and Beta module to complement your research on Cerence. For information on how to trade Cerence Stock refer to our How to Trade Cerence Stock guide.You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Cerence technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.