Published on 7 Feb 2024 on Simply Wall St. via Yahoo Finance
Are Investors Undervaluing Cerence Inc. (NASDAQ:CRNC) By 31%?
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Cerence fair value estimate is US$27.11Cerence's US$18.58 share price signals that it might be 31% undervalued The US$21.75 analyst price target for CRNC is 20% less than our estimate of fair value
In this article we are going to estimate the intrinsic value of Cerence Inc. (NASDAQ:CRNC) by taking the forecast future cash flows of the company and discounting them back to today's value. This will be done using the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.