C3.ai, Inc.

TechnologyInformation Technology ServicesNYSE

$8.79

Market Cap: $1.25B

C3.ai, Inc. (AI) Valuation Summary

Updated Apr 27, 2026 22:21

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	—	N/A	—
Revenue DCF 10Y	$0.44 – $24.88	$2.31	-73.7%
▸ Trading Multiples
EV/Revenue	$2.83 – $8.27	$3.73	-57.6%

Valuation History

DCF Analysis

C3.ai, Inc. (AI) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$2.31

Market Price

$8.79

Upside / Downside

-73.7%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -83.4% to a target of 10.1% over 5 years, discounted at a WACC of 9.0%, C3.ai, Inc. (AI) has an intrinsic value of $2.31 per share (range: $0.44 – $24.88).

Key Assumptions

Current Operating Margin

-83.4%

Target Operating Margin

10.1%

WACC

9.0%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

7.8%

Target CapEx/Rev

6.0%

D&A/Revenue

2.8%

Tax Rate

21.0%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	249	-36.1%	-64.7%	-161	-161	7	(19)	-50	-123	-117
2027	225	-9.6%	-46.0%	-103	-103	6	(17)	-7	-107	-94
2028	260	15.6%	-27.3%	-71	-71	7	(19)	10	-93	-75
2029	1,201	361.8%	-8.6%	-104	-104	34	(85)	271	-426	-315
2030	1,681	40.0%	10.1%	169	134	47	(116)	138	-74	-50
2031	1,979	17.8%	10.1%	199	157	55	(133)	86	-6	-4
2032	2,272	14.8%	10.1%	229	181	64	(149)	84	11	6
2033	2,542	11.9%	10.1%	256	202	71	(162)	78	34	18
2034	2,768	8.9%	10.1%	279	220	78	(171)	65	61	30
2035	2,933	6.0%	10.1%	295	233	82	(176)	47	92	41

Enterprise Value Bridge

Sum of PV(FCFF)-562

Terminal Value (Gordon Growth at 3.0%)1,585

PV of Terminal Value701

Enterprise Value139

(–) Net Debt-160

Equity Value299

(÷) Shares Outstanding129

Fair Value per Share$2.31

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.1%	7.1%	10.1%	13.1%	16.1%
7.0%	$-7	$-3	$6	$16	$25
8.0%	$-7	$-3	$4	$11	$18
9.0%	$-6	$-3	$2	$8	$14
10.0%	$-6	$-4	$1	$6	$11
11.0%	$-6	$-4	$0	$4	$9

Current price: $8.79. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 28.8% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$3.73

Market Price

$8.79

Upside / Downside

-57.6%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), C3.ai, Inc. (AI) has a fair value of $3.73 based on 9 comparable companies in the Information Technology Services industry.

EV/Revenue Valuation — Information Technology Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
C3.ai, Inc.AI	1,135	2.5x	3.9x
Formula Systems (1985) Ltd.FORTY	2,090	0.5x	—
DXC Technology CompanyDXC	1,966	0.4x	0.4x
Globant S.A.GLOB	1,831	0.8x	0.8x
Clarivate PlcCLVT	1,580	2.3x	2.2x
Concentrix CorporationCNXC	1,497	0.6x	0.6x
Innodata Inc.INOD	1,364	5.1x	3.8x
BigBear.ai Holdings, Inc.BBAI	1,338	10.0x	8.7x
Pagaya Technologies Ltd.PGY	1,097	1.4x	1.7x
ASGN IncorporatedASGN	895	0.5x	0.5x
Industry Median		0.8x	1.3x
(*) Revenue		389	249
= Enterprise Value		327	317
(-) Net Debt		-160	-160
Equity Value		486	476
(/) Outstanding shares		129	129
Fair Price		$4	$4

Selected Fair Value (avg of trailing + forward)

$3.73

-57.6%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

—

N/A

—

Revenue DCF 10Y

$0.44 – $24.88

$2.31

-73.7%

▸ Trading Multiples

EV/Revenue

$2.83 – $8.27

$3.73

-57.6%

DCF Analysis

C3.ai, Inc. (AI) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$2.31

Market Price

$8.79

Upside / Downside

-73.7%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-83.4%

Target Operating Margin

10.1%

WACC

9.0%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

7.8%

Target CapEx/Rev

6.0%

D&A/Revenue

2.8%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	249	-36.1%	-64.7%	-161	-161	7	(19)	-50	-123	-117
2027	225	-9.6%	-46.0%	-103	-103	6	(17)	-7	-107	-94
2028	260	15.6%	-27.3%	-71	-71	7	(19)	10	-93	-75
2029	1,201	361.8%	-8.6%	-104	-104	34	(85)	271	-426	-315
2030	1,681	40.0%	10.1%	169	134	47	(116)	138	-74	-50
2031	1,979	17.8%	10.1%	199	157	55	(133)	86	-6	-4
2032	2,272	14.8%	10.1%	229	181	64	(149)	84	11	6
2033	2,542	11.9%	10.1%	256	202	71	(162)	78	34	18
2034	2,768	8.9%	10.1%	279	220	78	(171)	65	61	30
2035	2,933	6.0%	10.1%	295	233	82	(176)	47	92	41

Enterprise Value Bridge

Sum of PV(FCFF)-562

Terminal Value (Gordon Growth at 3.0%)1,585

PV of Terminal Value701

Enterprise Value139

(–) Net Debt-160

Equity Value299

(÷) Shares Outstanding129

Fair Value per Share$2.31

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.1%	7.1%	10.1%	13.1%	16.1%
7.0%	$-7	$-3	$6	$16	$25
8.0%	$-7	$-3	$4	$11	$18
9.0%	$-6	$-3	$2	$8	$14
10.0%	$-6	$-4	$1	$6	$11
11.0%	$-6	$-4	$0	$4	$9

Current price: $8.79. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 28.8% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$3.73

Market Price

$8.79

Upside / Downside

-57.6%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), C3.ai, Inc. (AI) has a fair value of $3.73 based on 9 comparable companies in the Information Technology Services industry.

EV/Revenue Valuation — Information Technology Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
C3.ai, Inc.AI	1,135	2.5x	3.9x
Formula Systems (1985) Ltd.FORTY	2,090	0.5x	—
DXC Technology CompanyDXC	1,966	0.4x	0.4x
Globant S.A.GLOB	1,831	0.8x	0.8x
Clarivate PlcCLVT	1,580	2.3x	2.2x
Concentrix CorporationCNXC	1,497	0.6x	0.6x
Innodata Inc.INOD	1,364	5.1x	3.8x
BigBear.ai Holdings, Inc.BBAI	1,338	10.0x	8.7x
Pagaya Technologies Ltd.PGY	1,097	1.4x	1.7x
ASGN IncorporatedASGN	895	0.5x	0.5x
Industry Median		0.8x	1.3x
(*) Revenue		389	249
= Enterprise Value		327	317
(-) Net Debt		-160	-160
Equity Value		486	476
(/) Outstanding shares		129	129
Fair Price		$4	$4

Selected Fair Value (avg of trailing + forward)

$3.73

-57.6%