Cerence Valuation
| CRNC Stock | USD 19.33 11.40 143.76% |
At this time, the firm appears to be undervalued. Cerence shows a prevailing Real Value of $22.42 per share. The current price of the firm is $19.33. Our model approximates the value of Cerence from analyzing the firm fundamentals such as Return On Equity of -1.35, profit margin of (1.62) %, and Current Valuation of 505.71 M as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Cerence's valuation include:
Price Book 2.3917 | Enterprise Value | Enterprise Value Ebitda 11.0419 | Price Sales 0.944 | Forward PE 156.25 |
Undervalued
Today
Please note that Cerence's price fluctuation is relatively risky at this time. Calculation of the real value of Cerence is based on 3 months time horizon. Increasing Cerence's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Cerence is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Cerence Stock. However, Cerence's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 19.33 | Real 22.42 | Target 31.5 | Hype 15.98 | Naive 13.79 |
The real value of Cerence Stock, also known as its intrinsic value, is the underlying worth of Cerence Company, which is reflected in its stock price. It is based on Cerence's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Cerence's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Cerence helps investors to forecast how Cerence stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Cerence more accurately as focusing exclusively on Cerence's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Cerence's intrinsic value based on its ongoing forecasts of Cerence's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Cerence's closest peers. If more than one evaluation category is relevant for Cerence we suggest using both methods to arrive at a better estimate.
Cerence Cash |
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Cerence Valuation Trend
Comparing Cerence's enterprise value against its market capitalization is a good way to estimate the value of Cerence uage its performance over time. This information may sometimes be enough for investors to make reasonable market timing decisions.
Cerence Revenue by Product
Cerence Total Value Analysis
Cerence is currently estimated to have valuation of 505.71 M with market capitalization of 337.46 M, debt of 100.42 M, and cash on hands of 129.34 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Cerence fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
505.71 M | 337.46 M | 100.42 M | 129.34 M |
Cerence Investor Information
About 83.0% of the company shares are held by institutions such as insurance companies. The book value of Cerence was currently reported as 3.69. The company has Price/Earnings To Growth (PEG) ratio of 0.96. Cerence recorded a loss per share of 14.12. The entity had not issued any dividends in recent years. Based on the measurements of operating efficiency obtained from Cerence's historical financial statements, Cerence is not in a good financial situation at the present time. It has a very high chance of going through financial crunch in February.Cerence Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cerence has an asset utilization ratio of 47.2 percent. This indicates that the Company is making $0.47 for each dollar of assets. An increasing asset utilization means that Cerence is more efficient with each dollar of assets it utilizes for everyday operations.Cerence Ownership Allocation
Cerence holds a total of 42.99 Million outstanding shares. The majority of Cerence outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Cerence to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Cerence. Please pay attention to any change in the institutional holdings of Cerence as this could imply that something significant has changed or is about to change at the company. On September 19, 2022, Representative Josh Gottheimer of US Congress acquired under $15k worth of Cerence's common stock.Cerence Profitability Analysis
The company reported the previous year's revenue of 331.5 M. Net Loss for the year was (588.08 M) with profit before overhead, payroll, taxes, and interest of 233.71 M.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Cerence's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Cerence and how it compares across the competition.
About Cerence Valuation
The stock valuation mechanism determines Cerence's current worth on a weekly basis. Our valuation model uses a comparative analysis of Cerence. We calculate exposure to Cerence's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Cerence's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 280.9 M | 233.5 M | |
| Pretax Profit Margin | (2.03) | (1.93) | |
| Operating Profit Margin | (2.01) | (1.91) | |
| Net Loss | (2.04) | (1.94) | |
| Gross Profit Margin | 0.66 | 0.56 |
Cerence Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 41.6 M | |
| Quarterly Earnings Growth Y O Y | -0.101 | |
| Forward Price Earnings | 156.25 |
Cerence Current Valuation Indicators
Valuation refers to the process of determining the present value of Cerence and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Cerence we look at many different elements of the entity such as Cerence's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Cerence, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Cerence's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Cerence's worth.Complementary Tools for Cerence Stock analysis
When running Cerence's price analysis, check to measure Cerence's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cerence is operating at the current time. Most of Cerence's value examination focuses on studying past and present price action to predict the probability of Cerence's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cerence's price. Additionally, you may evaluate how the addition of Cerence to your portfolios can decrease your overall portfolio volatility.
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