* Note: Prices are in Million (M) USD.
Description:
C3.ai, Inc. (ticker: AI) is a premier provider of artificial intelligence software solutions that empowers enterprises to drive digital transformation across diverse sectors, including energy, manufacturing, and financial services. The company's advanced AI platform enables the development, deployment, and management of large-scale applications, utilizing sophisticated machine learning models to optimize operations and enhance business outcomes. By delivering innovative applications for predictive maintenance, data-driven insights, and improved decision-making, C3.ai is strategically positioned to leverage the accelerating demand for AI technologies. With a commitment to enterprise-grade scalability and performance, C3.ai is well-equipped to meet the evolving needs of organizations in a rapidly digitizing world.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $81 M
Debt : $0 M
EBITDA : $-359 M
Since Ebitda is less than 0, 0 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Services-prepackaged software
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 7 overlapping fiscal years (max 20).Average Free Cash Flow: $-80 M
Average Revenue: $236 M
Revenue Converted To Free Cash Flow (%): -33.8%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-04-30): $389 M
Revenue 5 Years Ago (2020-04-30): $157 M
Total Growth over 5 Years: 148.3%
5-Year Revenue CAGR (Historical): 20.0%
Forward 5-Year CAGR (Tapered): 14.0%
Since historical Revenue CAGR is between 15 - 20, 4 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-04-30): $129 M
Share Count 5 Years Ago (2021-04-30): $57 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $-0.91
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-0.91
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 5 valid ROE years (max 20).Average ROE: -24.0%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $17.58
52-Week Low: $14.70
Threshold Price (15% Above 52-Week Low): $16.91
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $2,362 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 12 points to above C3 Ai Inc (AI) stock.
Fair Value PE 20, Industry Based PE 25, Growth Based PE 15, Risk-Free Anchored PE (25% MoS) 18.2. Based on these 4 values, average assigned is 19.55. The fair value of C3 Ai Inc (AI) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
