Ooma Valuation

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

Below Fair Value: OOMA ($13.61) is trading below our estimate of fair value ($42.2)

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


Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for OOMA. This is calculated by dividing OOMA's market cap by their current revenue.
What is OOMA's PS Ratio?
PS Ratio1.5x
SalesUS$248.16m
Market CapUS$365.28m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for OOMA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.2x
DOMO Domo
1.1x0.09%US$338.8m
LAW CS Disco
2.3x5.4%US$325.9m
AEYE AudioEye
9.1x20.1%US$311.5m
0.5x1.1%US$351.5m
OOMA Ooma
1.5x7.3%US$365.3m

Price-To-Sales vs Peers: OOMA is good value based on its Price-To-Sales Ratio (1.5x) compared to the peer average (3.2x).


Price to Sales Ratio vs Industry

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

81 CompaniesPrice / SalesEstimated GrowthMarket Cap
VYX NCR Voyix
0.6x-23.2%US$2.04b
PGY Pagaya Technologies
0.7x15.8%US$634.91m
XPER Xperi
0.8x1.8%US$378.82m
0.5x1.1%US$351.48m
OOMA 1.5xIndustry Avg. 5.1xNo. of Companies81PS048121620+
81 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: OOMA is good value based on its Price-To-Sales Ratio (1.5x) compared to the US Software industry average (5.1x).


Price to Sales Ratio vs Fair Ratio

What is OOMA'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.

OOMA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.5x
Fair PS Ratio1.7x

Price-To-Sales vs Fair Ratio: OOMA is good value based on its Price-To-Sales Ratio (1.5x) compared to the estimated Fair Price-To-Sales Ratio (1.7x).


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 OOMA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$13.61
US$14.80
+8.7%
4.6%US$16.00US$14.00n/a5
Nov ’25US$12.23
US$14.80
+21.0%
4.6%US$16.00US$14.00n/a5
Oct ’25US$11.34
US$14.80
+30.5%
4.6%US$16.00US$14.00n/a5
Sep ’25US$10.40
US$14.80
+42.3%
4.6%US$16.00US$14.00n/a5
Aug ’25US$9.80
US$14.80
+51.0%
4.6%US$16.00US$14.00n/a5
Jul ’25US$9.12
US$14.80
+62.3%
4.6%US$16.00US$14.00n/a5
Jun ’25US$8.64
US$15.00
+73.6%
4.1%US$16.00US$14.50n/a4
May ’25US$7.51
US$15.60
+107.7%
8.5%US$18.00US$14.50n/a5
Apr ’25US$8.50
US$15.60
+83.5%
8.5%US$18.00US$14.50n/a5
Mar ’25US$10.04
US$17.80
+77.3%
5.5%US$19.00US$16.00n/a5
Feb ’25US$10.56
US$17.80
+68.6%
5.5%US$19.00US$16.00n/a5
Jan ’25US$10.73
US$18.00
+67.8%
3.5%US$19.00US$17.00n/a5
Dec ’24US$11.86
US$18.60
+56.8%
5.5%US$20.00US$17.00n/a5
Nov ’24US$10.59
US$18.60
+75.6%
5.5%US$20.00US$17.00US$12.235
Oct ’24US$13.01
US$18.80
+44.5%
4.0%US$20.00US$18.00US$11.345
Sep ’24US$14.14
US$18.80
+33.0%
4.0%US$20.00US$18.00US$10.405
Aug ’24US$15.04
US$18.80
+25.0%
4.0%US$20.00US$18.00US$9.805
Jul ’24US$14.97
US$18.80
+25.6%
4.0%US$20.00US$18.00US$9.125
Jun ’24US$13.50
US$18.80
+39.3%
4.0%US$20.00US$18.00US$8.645
May ’24US$12.30
US$21.70
+76.4%
16.3%US$27.50US$18.00US$7.515
Apr ’24US$12.51
US$21.70
+73.5%
16.3%US$27.50US$18.00US$8.505
Mar ’24US$13.07
US$22.30
+70.6%
13.9%US$27.50US$19.00US$10.045
Feb ’24US$14.86
US$22.30
+50.1%
13.9%US$27.50US$19.00US$10.565
Jan ’24US$13.62
US$22.30
+63.7%
13.9%US$27.50US$19.00US$10.735
Dec ’23US$15.38
US$22.30
+45.0%
13.9%US$27.50US$19.00US$11.865
Nov ’23US$16.13
US$22.10
+37.0%
13.6%US$27.50US$19.00US$10.595

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


Discover undervalued companies