Sonder Holdings Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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 SOND when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SOND ($3.52) is trading below our estimate of fair value ($56.54)

Significantly Below Fair Value: SOND is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for SOND. This is calculated by dividing SOND's market cap by their current revenue.
What is SOND's PS Ratio?
PS Ratio	0.06x
Sales	US$623.24m
Market Cap	US$38.84m

SOND key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.3x
Enterprise Value/EBITDA	-8.4x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SOND vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	0.4x
YTRA Yatra Online	1.2x	n/a	US$81.9m
ISPO Inspirato	0.1x	n/a	US$39.4m
PNST Pinstripes Holdings	0.3x	19.5%	US$43.2m
VCSA Vacasa	0.05x	-5.6%	US$64.9m
SOND Sonder Holdings	0.06x	19.8%	US$38.8m

Price-To-Sales vs Peers: SOND is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (0.4x).

Price to Sales Ratio vs Industry

How does SOND's PS Ratio compare vs other companies in the US Hospitality Industry?

29 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	1.6x	9.9%
SOND Sonder Holdings	0.06x	19.8%	US$38.84m
BLMN Bloomin' Brands	0.2x	-2.7%	US$1.07b
BALY Bally's	0.3x	2.4%	US$726.31m

29 Companies		Estimated Growth	Market Cap
Industry Avg.	1.6x	25.9%
SOND Sonder Holdings	0.06x	38.9%	US$38.84m

No more companies

Price-To-Sales vs Industry: SOND is good value based on its Price-To-Sales Ratio (0.1x) compared to the US Hospitality industry average (1.6x).

Price to Sales Ratio vs Fair Ratio

What is SOND'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.

SOND PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.06x
Fair PS Ratio	0.2x

Price-To-Sales vs Fair Ratio: SOND is good value based on its Price-To-Sales Ratio (0.1x) compared to the estimated Fair Price-To-Sales Ratio (0.2x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.