C3.ai, Inc. (AI) Stock Valuation — PE Analysis
Information Technology Services · NYSE
Current Price
$10.90
PE Ratio (TTM)
n/m
Intrinsic Value
Use the calculator below to estimate
COMPETITIVE MOAT
↑Shell Collaboration Expansion
C3.ai's expanded collaboration with Shell to scale AI deployment across global operations demonstrates a deep, integrated partnership. This signifies customer stickiness and validation of their enterprise AI solutions in a critical industry.
↑Enterprise AI Platform Specialization
The company's focus on a specialized enterprise AI platform for complex industrial applications creates a niche. This deep expertise in a specific domain can be difficult for generalist competitors to replicate quickly.
↑Restructuring for Efficiency
C3.ai's successful restructuring efforts to cut cash burn and restore growth indicate a strategic pivot. This focus on operational efficiency and financial discipline can improve long-term viability and investor confidence.
INVESTMENT RISKS
↓Revenue Collapse and Strategy Uncertainty
A significant revenue collapse, as reported, coupled with a lack of a clear AI product strategy, poses a substantial threat. This raises concerns about market positioning and future growth drivers.
↓Intense AI Competition
The broader AI market is highly competitive, with numerous players vying for market share. C3.ai faces challenges from both established tech giants and agile startups, making differentiation difficult.
↓Soft Revenue Outlook
Despite beating Q4 estimates, a soft revenue outlook suggests ongoing challenges in accelerating growth. This indicates potential headwinds in customer acquisition or deal closure rates.
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C3.ai, Inc. is a leading provider of enterprise artificial intelligence (AI) software solutions, serving a global clientele across North America, Europe, the Middle East, Africa, and the Asia Pacific region. Its core offerings include the C3 AI Application Platform, a robust environment for developing, deploying, and operating enterprise-scale AI applications. Complementing this platform are specialized tools such as C3 AI Ex Machina for preparing data for analysis, C3 AI CRM which is tailored for specific industry customer relationship management needs, and C3 AI Data Vision for insightful visualization and understanding of complex data relationships. Furthermore, C3.ai delivers a comprehensive portfolio of pre-built, industry-specific AI applications designed to tackle critical business challenges. These include solutions for optimizing inventory levels (C3 AI Inventory Optimization), mitigating supply chain disruptions (C3 AI Supply Network Risk), proactively managing customer attrition (C3 AI Customer Churn Management), streamlining production schedules (C3 AI Production Schedule Optimization), forecasting equipment failures (C3 AI Predictive Maintenance), identifying financial irregularities (C3 AI Fraud Detection), and optimizing energy consumption (C3 AI Energy Management). These integrated, turnkey AI applications cater to a wide array of market segments, including oil and gas, chemicals, utilities, manufacturing, financial services, defense, intelligence, aerospace, healthcare, and telecommunications. The company maintains strategic alliances with key players like Baker Hughes (for oil & gas), FIS (financial services), Raytheon, and major technology firms including AWS, Intel, Google, and Microsoft. Originally incorporated in 2009 as C3 IoT, Inc., the company adopted its current name, C3.ai, Inc., in June 2019 and is headquartered in Redwood City, California.
Financial Metrics — AI PE Stock Valuation Data
PE Ratio (TTM)
n/m
PEG Ratio
0.09
Earnings Yield
-29.51%
ROE (TTM)
-63.9%
Revenue/Share (TTM)
$1.71
Frequently Asked Questions
What is the PE ratio of AI?
The trailing twelve-month PE ratio of AI reflects how much investors pay per dollar of C3.ai, Inc.'s earnings. This metric is most useful when compared to Information Technology Services peers and the company's own historical range.
Is AI overvalued based on PE ratio?
AI's PE of -3.4x combined with a PEG ratio of 0.09 provides a growth-adjusted perspective. A PEG below 1.0 suggests AI may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Information Technology Services, a DCF analysis may be more appropriate.
How do I value AI stock using PE ratio?
To value C3.ai, Inc. using PE: (1) Compare the current PE (-3.4x) against the Information Technology Services median to assess relative pricing, (2) check the PEG ratio (0.09) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of AI?
AI's PEG ratio is 0.09, calculated by dividing the PE ratio (-3.4x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for AI stock valuation?
PE ratio gives a quick relative read — how AI is priced versus Information Technology Services peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See AI DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Technology valuationsP/E and DCF value AI with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.