Recent performance context for Sprinklr stock
Sprinklr (CXM) has drawn investor attention after a period where the stock declined about 28% year to date and about 35% over the past year, despite reporting US$857.2 million in revenue and US$22.905 million in net income.
See our latest analysis for Sprinklr.
The recent 7-day share price return of 7.77% offers a short burst of positive momentum, although the share price is still down 28.01% year to date and the 1-year total shareholder return is down 34.53%. This points to sentiment that remains cautious despite the underlying business performance.
If Sprinklr has you rethinking how AI driven software fits in a portfolio, this could be a good moment to scan the market for 63 profitable AI stocks that aren't just burning cash
So with Sprinklr stock down sharply over 1 and 3 years, yet trading at a reported 63% discount to an intrinsic estimate and 61% below analyst targets, is this a reset buying opportunity, or is the market already discounting future growth?
Most Popular Narrative: 38% Undervalued
Sprinklr's most followed valuation narrative pegs fair value at $8.50 per share, which sits well above the latest close of $5.27 and frames the current discount in clear terms.
Sprinklr's accelerated integration and deployment of advanced AI functionality across its Marketing, Insights, and CCaaS products is enabling customers to harness actionable insights from complex, unstructured data, directly benefiting from the broader enterprise demand for AI-powered analytics and automation. This supports higher platform adoption, customer expansion, and ultimately improves both revenue growth and net margins over time.
Curious what revenue trajectory, margin profile, and future earnings multiple are baked into that $8.50 figure? The narrative leans on a specific mix of moderated growth, higher profitability, and a reset valuation bar that could surprise you once you see the full set of assumptions.
Result: Fair Value of $8.50 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, there are still clear risks, including customer concentration and rising AI infrastructure costs, that could pressure revenue stability and margins if conditions worsen.
Find out about the key risks to this Sprinklr narrative.
Another way to look at Sprinklr's valuation
While the fair value narrative points to a discount, the current P/E of 57.3x tells a different story. It sits well above the US Software industry average of 26.7x and above Sprinklr's own fair ratio of 32.3x. This suggests meaningful valuation risk if expectations reset.
For a closer look at how this earnings multiple compares with peers and that fair ratio, See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
With sentiment clearly mixed, use this window to review the full picture yourself and weigh both the potential upside and downside through 2 key rewards and 3 important warning signs
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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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