Sprinklr (CXM) has been in focus after recent share price moves, with the stock closing at US$5.33 and showing negative returns over the past month and past 3 months, drawing attention to its current valuation.
See our latest analysis for Sprinklr.
For context, Sprinklr’s recent weakness extends beyond the latest 1 day share price decline of 2.2%. The 30 day share price return is 9.35% and the year to date share price return is 27.19%, while the 1 year total shareholder return of 22.53% and 3 year total shareholder return of 57.66% indicate longer term holders have also seen meaningful value erosion and suggest momentum has been fading rather than building recently.
If you are comparing Sprinklr with other software names using AI, a natural next step is to scan for 73 profitable AI stocks that aren't just burning cash.
With Sprinklr trading at US$5.33 alongside an intrinsic discount estimate of 61.62% and a sizeable gap to analyst targets, investors may now need to ask whether this reflects genuine mispricing or whether the market is already incorporating expectations about future growth.
Most Popular Narrative: 37.3% Undervalued
With Sprinklr’s fair value estimate at $8.50 versus the recent $5.33 close, the most followed narrative points to a wide gap that hinges on long range assumptions and execution.
Bullish analysts point to Sprinklr's long term transformation plan, noting that its three phase approach is progressing broadly in line with management expectations. They see this as supporting a higher fair value than near term sentiment might imply.
Despite lowering targets, bullish analysts maintain positive ratings. They view the long term product and platform positioning as intact and not fully reflected in current valuations.
Curious what justifies a fair value meaningfully above today’s price? The narrative leans on specific revenue paths, margin shifts, and re rated earnings multiples. The exact mix may surprise you.
Result: Fair Value of $8.50 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this upside story depends on concentrated enterprise customers staying loyal and on rising AI related cloud and data costs not squeezing margins more than expected.
Find out about the key risks to this Sprinklr narrative.
Another View: Multiples Paint a Tougher Picture
The fair value work and discount to $8.50 suggest upside, but the current P/E of 57.9x stands well above the US Software industry at 29.7x, the peer average at 27.6x, and even a fair ratio estimate of 31.6x. That kind of gap often signals valuation risk rather than a clear bargain, so which signal do you trust more right now?
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
With sentiment clearly mixed, now is the moment to look through the numbers yourself, weigh both the risks and the potential upside, and review the 2 key rewards and 3 important warning signs.
Looking for more investment ideas?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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