Cerence Inc. (CRNC) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-241.7%

-$11.39

vs $8.04 price

Levered DCF

-$1.19

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

-0.78

Distress zone

Rating

C-

Overall 1 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	-28.98×	-0.22×	-14.55×	-1.99×	78.78×	-85.74×	6.27×	159.38×
P/B	3.57×	0.93×	1.18×	0.87×	3.52×	1.86×	0.59×	0.93×
P/S	2.14×	0.4×	2.78×	1.88×	9.37×	5.38×	2.07×	3.35×
EV / EBITDA	57.26×	-0.54×	-180.47×	-5.04×	41.23×	65.26×	15.69×	14.83×
Gross margin	72.1%	73.0%	65.7%	66.9%	70.6%	63.6%	62.6%	66.3%
Operating margin	5.2%	14.0%	-5.2%	11.7%	17.0%	11.8%	11.9%	19.4%
Net margin	-7.4%	-177.4%	-19.1%	-94.8%	11.9%	-5.5%	33.1%	2.1%
Current ratio	1.84×	1.22×	1.52×	1.55×	1.74×	1.25×	0.72×	0.68×
Debt / equity	1.53×	2.09×	0.42×	0.4×	0.28×	0.31×	0×	0×
Interest coverage	1.28×	3.69×	-1.03×	2.66×	4.69×	1.71×	0×	0×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	8.6%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	-835.2%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-12.4%	-416.8%	-8.1%	-43.6%	4.4%	-1.9%	9.4%	0.6%
Return on invested capital	2.5%	8.0%	-1.3%	3.2%	4.0%	2.1%	2.7%	0.7%
Return on assets	-3.0%	-83.7%	-4.3%	-23.6%	2.7%	-1.1%	6.8%	0.4%
Free cash flow yield	8.7%	9.3%	0.3%	-3.2%	1.7%	1.4%	13.3%	11.7%
Earnings yield	-3.5%	-448.3%	-6.9%	-50.4%	1.3%	-1.0%	16.0%	0.6%
Enterprise value	$684.3M	$304.9M	$1B	$809.2M	$3.8B	$1.9B	$627.9M	$927.8M
Net debt / EBITDA	12.24×	-0.31×	-33.71×	-1.2×	1.76×	5.4×	0×	0×
Cash conversion cycle (days)	81	53	40	15	6	29	26	70