Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells multi-room audio products in the United States and internationally.
The last earnings update was 70 days ago.
Discounted Cash Flow Calculation for WBAG:SONO using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
WBAG:SONO DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Sonos's share price is below the future cash flow value, and at a moderate discount (> 20%).
Sonos's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Sonos's earnings available for a low price, and how does
this compare to other companies in the same industry?
Sonos's earnings are expected to grow significantly at over 20% yearly.
Sonos's revenue is expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Sonos's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Patrick Spence has been Chief Executive Officer and as a member of board of directors at Sonos, Inc. since January 2017, and has been its President since July 2016. He served as Managing Director of Global Sales & Regional Marketing at Research In Motion Limited (RIM) from July 2011 to May 2012. Mr. Spence works with Thorsten to tightly couple the execution of product development and regional business operations around the world, enable faster local execution tailored to local market needs and support the needs of RIM's valued operator and distribution partners. He has more than ten years of success overseeing sales and country operations for RIM in various regions including North America, Asia Pacific and EMEA. He was the Managing Director of Global Sales & Regional Marketing at BlackBerry Limited from July 2011 to May 2012. Mr. Spence was Executive produced the 2005 series of Waking The Dead. He served on the team that produced Silent Witness in 1996, then came back two years later as the show's Executive Producer and as Head of Development, Drama Series – commissioning Waking The Dead, Murder In Mind and Down To Earth, amongst others. Additional credits include Five's first and only BAFTA- nominated drama, Wing And A Prayer, which Mr. Spence commissioned at Thames; and stints at Scottish, Central, Pearson and Granada, where he script edited Cracker, written by Jimmy McGovern and Paul Abbott.
Insufficient data for Patrick to compare compensation growth.
Patrick's remuneration is higher than average for companies of similar size in Austria.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Sonos management team is about average.
CEO, President & Director
Chief Financial Officer
Chief Commercial Officer
Chief Product Officer
Co-Founder and VP of Sales & Marketing
Chief Operations Officer
Chief Information Officer
Chief Legal Officer & Corporate Secretary
Chief People Officer
Managing Director of Sales and Operations for EMEA
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Sonos board of directors is about average.
Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells multi-room audio products in the United States and internationally. It provides wireless speakers, home theater speakers, and components. The company offers its products through third-party retail stores, including custom installers of home audio systems; and e-commerce retailers, as well as through its sonos.com Website. The company was formerly known as Rincon Audio, Inc. and changed its name to Sonos, Inc. in May 2004. Sonos, Inc. was founded in 2002 and is headquartered in Santa Barbara, California.
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