SoundHound AI Inc (SOUN) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
SoundHound AI Inc stock (SOUN) is currently trading at $6.55. SoundHound AI Inc PS ratio (Price-to-Sales) is 19.57. Analyst consensus price target for SOUN is $14.62. WallStSmart rates SOUN as Sell.
- SOUN PE ratio analysis and historical PE chart
- SOUN PS ratio (Price-to-Sales) history and trend
- SOUN intrinsic value — DCF, Graham Number, EPV models
- SOUN stock price prediction 2025 2026 2027 2028 2029 2030
- SOUN fair value vs current price
- SOUN insider transactions and insider buying
- Is SOUN undervalued or overvalued?
- SoundHound AI Inc financial analysis — revenue, earnings, cash flow
- SOUN Piotroski F-Score and Altman Z-Score
- SOUN analyst price target and Smart Rating
SoundHound AI Inc
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Smart Analysis
SoundHound AI Inc (SOUN) · 8 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in revenue growth. Concerns around return on equity and operating margin. Significant fundamental concerns warrant caution or avoidance.
SoundHound AI Inc (SOUN) Key Strengths (2)
Revenue surging 59.40% year-over-year
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
SoundHound AI Inc (SOUN) Areas to Watch (6)
Company is destroying shareholder value
Losing money on operations
Company is losing money with a negative profit margin
Very expensive at 19.6x annual revenue
Very expensive at 6.9x book value
Moderate institutional interest at 46.84%
Supporting Valuation Data
SoundHound AI Inc (SOUN) Detailed Analysis Report
Overall Assessment
This company scores 25/100 in our Smart Analysis, earning a F grade. Out of 8 metrics analyzed, 2 register as strengths (avg 8.5/10) while 6 fall into concern territory (avg 1.7/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Revenue Growth, Market Cap. Growth metrics are encouraging with Revenue Growth at 59.40%.
The Bear Case
The primary concerns are Return on Equity, Operating Margin, Profit Margin. Some valuation metrics including Price/Sales (19.57), Price/Book (6.87) suggest expensive pricing. Profitability pressure is visible in Return on Equity at -4.33%, Operating Margin at -74.20%, Profit Margin at -8.29%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at -4.33% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 59.40% strong but requiring continuation.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. Return on Equity and Operating Margin are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
Compare SOUN with Competitors
Top SOFTWARE - APPLICATION stocks by market cap
Compare any two stocks →WallStSmart Analysis Synopsis
Data-driven financial summary for SoundHound AI Inc (SOUN) · TECHNOLOGY › SOFTWARE - APPLICATION
The Big Picture
SoundHound AI Inc is in a high-growth phase, prioritizing rapid expansion over margins. Revenue reached 169M with 59% growth year-over-year. The company is currently unprofitable, posting a -8.3% profit margin.
Key Findings
Revenue growing at 59% YoY, reaching 169M. This pace significantly outperforms most SOFTWARE - APPLICATION peers.
Debt-to-equity ratio of 0.01 indicates a conservative balance sheet with 269M in cash.
The company is unprofitable with a -8.3% profit margin. The path to breakeven will be the key catalyst.
Free cash flow is -44M, meaning the company is burning cash. This may be acceptable for high-growth companies investing heavily.
What to Watch Next
Growth sustainability: can SoundHound AI Inc maintain 59%+ revenue growth, or will competition slow it down?
Volatility is elevated with a beta of 2.88, so expect amplified moves relative to the broader market.
Sector dynamics: monitor SOFTWARE - APPLICATION industry trends, competitive moves, and regulatory changes that could impact SoundHound AI Inc.
Bottom Line
SoundHound AI Inc is a high-conviction growth story with revenue accelerating at 59% while profitability is still developing. For growth-oriented investors, the trajectory is compelling. For value investors, the thin -8.3% margins and premium valuation suggest patience until the unit economics mature further.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(10 last 3 months)
| Insider | Type | Shares |
|---|---|---|
STONEHOCKER, TIMOTHY Chief Technology Officer | Sell | -29,676 |
| Insider | Type | Shares |
|---|---|---|
EMAMI, MAJID CSO & SVP, Engineering, 10% Owner | Sell | -32,741 |
| Insider | Type | Shares |
|---|---|---|
STONEHOCKER, TIMOTHY Chief Technology Officer | Sell | -2,121 |
| Insider | Type | Shares |
|---|---|---|
SROKA, DIANA Director | Sell | -1,343 |
Data sourced from SEC Form 4 filings
Last updated: 11:20:11 AM
About SoundHound AI Inc(SOUN)
NASDAQ
TECHNOLOGY
SOFTWARE - APPLICATION
USA
SoundHound AI, Inc. develops an independent voice artificial intelligence (AI) platform that enables businesses in all industries to deliver high-quality conversational experiences to their customers. The company is headquartered in Santa Clara, California.