SoundHound AI, Inc.

NasdaqGM:SOUN Stock Report

Market Cap: US$5.0b

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-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book 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.

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 barely has revenue we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for SOUN. This is calculated by dividing SOUN's market cap by their current book value.
What is SOUN's PB Ratio?
PB Ratio20.6x
BookUS$295.99m
Market CapUS$5.04b

Price to Book Ratio vs Peers

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

The above table shows the PB ratio for SOUN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PBEstimated GrowthMarket Cap
Peer Average11.4x
BRZE Braze
10.2x12.8%US$4.6b
INTA Intapp
12.3x80.3%US$5.2b
YOU Clear Secure
18.4x27.0%US$3.6b
FRSH Freshworks
4.7x18.8%US$5.3b
SOUN SoundHound AI
20.6x22.0%US$5.0b

Price-To-Book vs Peers: SOUN is expensive based on its Price-To-Book Ratio (20.6x) compared to the peer average (11.4x).

Price to Book Ratio vs Industry

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

29 CompaniesPrice / BookEstimated GrowthMarket Cap
ETWO E2open Parent Holdings
0.7x78.7%US$866.65m
API Agora
0.8x71.5%US$442.52m
CMCM Cheetah Mobile
0.4xn/aUS$137.76m
XNET Xunlei
0.4xn/aUS$134.39m
SOUN 20.6xIndustry Avg. 3.7xNo. of Companies35PB03.26.49.612.816+
29 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Book vs Industry: SOUN is expensive based on its Price-To-Book Ratio (20.6x) compared to the US Software industry average (3.7x).

Price to Book Ratio vs Fair Ratio

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

SOUN PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio20.6x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate SOUN's Price-To-Book Fair Ratio for valuation analysis.

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$13.64
US$12.36
-9.4%
60.9%US$26.00US$6.00n/a7
Jan ’26US$19.84
US$12.36
-37.7%
60.9%US$26.00US$6.00n/a7
Dec ’25US$9.31
US$8.07
-13.3%
17.0%US$10.00US$6.00n/a7
Nov ’25US$5.14
US$7.79
+51.5%
16.0%US$9.50US$6.00n/a7
Oct ’25US$4.56
US$7.79
+70.7%
16.0%US$9.50US$6.00n/a7
Sep ’25US$4.89
US$7.79
+59.2%
16.0%US$9.50US$6.00n/a7
Aug ’25US$4.66
US$7.43
+59.4%
22.3%US$9.50US$5.00n/a7
Jul ’25US$3.89
US$7.43
+91.0%
22.3%US$9.50US$5.00n/a7
Jun ’25US$5.05
US$7.17
+41.9%
23.0%US$9.50US$5.00n/a6
May ’25US$4.41
US$7.15
+62.1%
23.4%US$9.50US$4.90n/a6
Apr ’25US$5.56
US$7.15
+28.6%
23.4%US$9.50US$4.90n/a6
Mar ’25US$6.04
US$6.63
+9.9%
20.5%US$9.00US$5.00n/a6
Feb ’25US$1.71
US$4.43
+159.3%
13.1%US$5.00US$3.60n/a6
Jan ’25US$2.12
US$4.52
+113.2%
13.3%US$5.00US$3.60US$19.845
Dec ’24US$2.30
US$4.52
+96.5%
13.3%US$5.00US$3.60US$9.315
Nov ’24US$1.54
US$5.04
+227.3%
21.1%US$7.00US$4.00US$5.145
Oct ’24US$2.01
US$5.04
+150.7%
21.1%US$7.00US$4.00US$4.565
Sep ’24US$2.52
US$5.07
+101.1%
27.0%US$7.00US$4.00US$4.893
Aug ’24US$2.39
US$5.90
+146.9%
17.7%US$7.00US$4.50US$4.663
Jul ’24US$4.55
US$5.90
+29.7%
17.7%US$7.00US$4.50US$3.893
Jun ’24US$2.94
US$4.77
+62.1%
36.2%US$7.00US$2.80US$5.053
May ’24US$2.57
US$4.23
+64.7%
17.9%US$5.00US$3.20US$4.413
Apr ’24US$2.76
US$4.23
+53.4%
17.9%US$5.00US$3.20US$5.563
Mar ’24US$2.82
US$3.70
+31.2%
40.5%US$5.00US$1.60US$6.043
Feb ’24US$2.06
US$3.70
+79.6%
40.5%US$5.00US$1.60US$1.713
Jan ’24US$1.77
US$4.40
+148.6%
36.6%US$6.00US$2.20US$2.123
Analyst Price Target
Consensus Narrative from 7 Analysts
US$12.36
Fair Value
33.7% overvalued intrinsic discount
7
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/21 00:31
End of Day Share Price 2025/01/21 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

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 here.

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 .

Analyst Sources

SoundHound AI, Inc. is covered by 7 analysts. 7 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.
Gil LuriaD.A. Davidson & Co.
Scott BuckH.C. Wainwright & Co.