Can C3.ai Grow Its Revenue by 13X? Investors Might Have to Hope So.

By New Constructs – Oct 25, 2023 at 5:12AM

NYSE: AI

C3.ai

Market Cap

$3B

Today's Change

(3.02%) $0.67

Current Price

$22.83

Price as of April 26, 2024, 4:00 p.m. ET

Lofty assumptions are baked into today's price. Can the artificial intelligence (AI) company live up to them?

C3.ai (AI 3.02%) has been one of the early beneficiaries of the mainstream adoption of artificial intelligence (AI). Its AI services are used by famous customers such as the U.S. Department of Defense and Shell (SHEL). And even after falling 40% off its recent highs, the stock is still valued at roughly 7 times trailing revenue.

What kind of performance is baked into that lofty price? Investment research firm New Constructs recently did a reverse discounted cash flow analysis of C3.ai, and if you're a shareholder, you won't want to miss it. How fast does C3.ai need to grow to justify today's price?

*Video and tools provided by New Constructs. Stock prices used were the market prices of Oct. 20, 2023. The video was published on Oct. 23, 2023.

The Motley Fool recommends C3.ai. The Motley Fool has a disclosure policy. New Constructs is an affiliate of The Motley Fool, their opinions remain their own and are unaffected by The Motley Fool.