SoundHound AI, Inc.

NasdaqGM:SOUN Stock Report

Market Cap: US$4.6b

SoundHound AI Valuation

Is SOUN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SOUN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$3.09k
Fair Value
99.7% undervalued intrinsic discount
8
Number of Analysts

Below Fair Value: Insufficient data to calculate SOUN's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate SOUN's fair value for valuation analysis.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SOUN?

Key metric: As SOUN is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SOUN. This is calculated by dividing SOUN's market cap by their current revenue.
What is SOUN's PS Ratio?
PS Ratio44.4x
SalesUS$102.23m
Market CapUS$4.60b

Price to Sales Ratio vs Peers

How does SOUN's PS Ratio compare to its peers?

The above table shows the PS ratio for SOUN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average7.5x
CLSK CleanSpark
6.4x31.48%US$3.5b
IREN IREN
10.8x44.35%US$4.2b
MARA MARA Holdings
9.4x18.81%US$6.8b
BILL BILL Holdings
3.3x12.56%US$4.8b
SOUN SoundHound AI
44.4x31.57%US$4.6b

Price-To-Sales vs Peers: SOUN is expensive based on its Price-To-Sales Ratio (44.4x) compared to the peer average (7.5x).

Price to Sales Ratio vs Industry

How does SOUN's PS Ratio compare vs other companies in the US Software Industry?

64 CompaniesPrice / SalesEstimated GrowthMarket Cap
RNG RingCentral
1x4.72%US$2.38b
VYX NCR Voyix
0.7x-11.16%US$1.88b
DSP Viant Technology
0.7x14.55%US$844.02m
XPER Xperi
0.7x4.54%US$350.88m
SOUN 44.4xIndustry Avg. 5.4xNo. of Companies64PS048121620+
64 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SOUN is expensive based on its Price-To-Sales Ratio (44.4x) compared to the US Software industry average (5.4x).

Price to Sales Ratio vs Fair Ratio

What is SOUN's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SOUN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio44.4x
Fair PS Ratio10.6x

Price-To-Sales vs Fair Ratio: SOUN is expensive based on its Price-To-Sales Ratio (44.4x) compared to the estimated Fair Price-To-Sales Ratio (10.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SOUN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$11.30
US$11.81
+4.54%
28.39%US$18.00US$8.00n/a8
Jul ’26US$10.48
US$11.81
+12.71%
28.39%US$18.00US$8.00n/a8
Jun ’26US$10.11
US$11.81
+16.84%
28.39%US$18.00US$8.00n/a8
May ’26US$9.15
US$13.93
+52.22%
48.18%US$26.00US$8.00n/a7
Apr ’26US$8.20
US$14.57
+77.70%
43.69%US$26.00US$8.00n/a7
Mar ’26US$10.82
US$14.57
+34.67%
43.69%US$26.00US$8.00n/a7
Feb ’26US$14.15
US$12.64
-10.65%
57.84%US$26.00US$7.00n/a7
Jan ’26US$19.84
US$12.36
-37.72%
60.89%US$26.00US$6.00n/a7
Dec ’25US$9.31
US$8.07
-13.30%
17.02%US$10.00US$6.00n/a7
Nov ’25US$5.14
US$7.79
+51.47%
16.05%US$9.50US$6.00n/a7
Oct ’25US$4.56
US$7.79
+70.74%
16.05%US$9.50US$6.00n/a7
Sep ’25US$4.89
US$7.79
+59.22%
16.05%US$9.50US$6.00n/a7
Aug ’25US$4.66
US$7.43
+59.41%
22.30%US$9.50US$5.00n/a7
Jul ’25US$3.89
US$7.43
+90.97%
22.30%US$9.50US$5.00US$10.487
Jun ’25US$5.05
US$7.17
+41.91%
23.02%US$9.50US$5.00US$10.116
May ’25US$4.41
US$7.15
+62.13%
23.39%US$9.50US$4.90US$9.156
Apr ’25US$5.56
US$7.15
+28.60%
23.39%US$9.50US$4.90US$8.206
Mar ’25US$6.04
US$6.63
+9.91%
20.54%US$9.00US$5.00US$10.826
Feb ’25US$1.71
US$4.43
+159.26%
13.13%US$5.00US$3.60US$14.156
Jan ’25US$2.12
US$4.52
+113.21%
13.30%US$5.00US$3.60US$19.845
Dec ’24US$2.30
US$4.52
+96.52%
13.30%US$5.00US$3.60US$9.315
Nov ’24US$1.54
US$5.04
+227.27%
21.06%US$7.00US$4.00US$5.145
Oct ’24US$2.01
US$5.04
+150.75%
21.06%US$7.00US$4.00US$4.565
Sep ’24US$2.52
US$5.07
+101.06%
27.03%US$7.00US$4.00US$4.893
Aug ’24US$2.39
US$5.90
+146.86%
17.67%US$7.00US$4.50US$4.663
Jul ’24US$4.55
US$5.90
+29.67%
17.67%US$7.00US$4.50US$3.893
AnalystConsensusTarget
Consensus Narrative from 8 Analysts
US$11.81
Fair Value
4.3% undervalued intrinsic discount
8
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/07/15 12:19
End of Day Share Price 2025/07/15 00:00
Earnings2025/03/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

SoundHound AI, Inc. is covered by 9 analysts. 8 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Brett KnoblauchCantor Fitzgerald & Co.
Thomas BlakeyCantor Fitzgerald & Co.
Gil LuriaD.A. Davidson & Co.