SoundHound Valuation

SOUN Stock  USD 8.79  0.23  2.69%   
At this time, the company appears to be undervalued. SoundHound AI has a current Real Value of $10.26 per share. The regular price of the company is $8.79. Our model measures the value of SoundHound AI from inspecting the company fundamentals such as Operating Margin of (1.09) %, shares outstanding of 387.56 M, and Return On Equity of -0.9 as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting SoundHound's valuation include:
Price Book
9.0073
Enterprise Value
3.3 B
Enterprise Value Ebitda
(25.42)
Price Sales
24.2313
Forward PE
227.2727
Undervalued
Today
8.79
Please note that SoundHound's price fluctuation is somewhat reliable at this time. Calculation of the real value of SoundHound AI is based on 3 months time horizon. Increasing SoundHound's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since SoundHound is currently traded on the exchange, buyers and sellers on that exchange determine the market value of SoundHound Stock. However, SoundHound's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  8.79 Real  10.26 Target  16.31 Hype  8.17
The intrinsic value of SoundHound's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence SoundHound's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
10.26
Real Value
14.52
Upside
Estimating the potential upside or downside of SoundHound AI helps investors to forecast how SoundHound stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of SoundHound more accurately as focusing exclusively on SoundHound's fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
-0.04-0.02-0.005
Details
Hype
Prediction
LowEstimatedHigh
3.918.1712.43
Details
8 Analysts
Consensus
LowTarget PriceHigh
14.8416.3118.11
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use SoundHound's intrinsic value based on its ongoing forecasts of SoundHound's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against SoundHound's closest peers.

SoundHound Cash

239.37 Million

SoundHound Revenue by Product

SoundHound Total Value Analysis

SoundHound AI is at this time anticipated to have valuation of 3.33 B with market capitalization of 3.6 B, debt of 4.35 M, and cash on hands of 33.41 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the SoundHound fundamentals before making equity appraisal based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
3.33 B
3.6 B
4.35 M
33.41 M

SoundHound Investor Information

About 51.0% of the company shares are owned by institutional investors. The company recorded a loss per share of 0.9. SoundHound AI had not issued any dividends in recent years. Based on the measurements of operating efficiency obtained from SoundHound's historical financial statements, SoundHound AI is not in a good financial situation at the present time. It has a very high chance of going through financial crunch in March.

SoundHound Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. SoundHound has an asset utilization ratio of 15.29 percent. This suggests that the Company is making $0.15 for each dollar of assets. An increasing asset utilization means that SoundHound AI is more efficient with each dollar of assets it utilizes for everyday operations.
 
Covid
 
Interest Hikes

SoundHound Profitability Analysis

Based on the measurements of profitability obtained from SoundHound's financial statements, SoundHound AI may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in March. Profitability indicators assess SoundHound's ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
2020-12-31
Previous Quarter
-74.7 M
Current Value
-109.3 M
Quarterly Volatility
67.9 M
 
Covid
 
Interest Hikes
At this time, SoundHound's Gross Profit is very stable compared to the past year. As of the 9th of February 2026, Gross Profit Margin is likely to grow to 0.48, while Pretax Profit Margin is likely to drop (4.02).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.480.44
Significantly Up
Slightly volatile
For SoundHound profitability analysis, we use financial ratios and fundamental drivers that measure the ability of SoundHound AI to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well SoundHound utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between SoundHound's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of SoundHound over time as well as its relative position and ranking within its peers.

SoundHound Earnings per Share Projection vs Actual

The next projected EPS of SoundHound is estimated to be -0.019175 with future projections ranging from a low of -0.045 to a high of -0.005. SoundHound's most recent 12-month trailing earnings per share (EPS TTM) is at -0.9. Please be aware that the consensus of earnings estimates for SoundHound AI is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Covid
 
Interest Hikes
SoundHound is projected to generate -0.019175 in earnings per share on the 31st of December 2026. SoundHound earnings estimates show analyst consensus about projected SoundHound EPS (Earning Per Share). It derives the highest and the lowest estimates based on SoundHound's historical volatility. Many public companies, such as SoundHound, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

SoundHound Earnings Estimation Breakdown

The calculation of SoundHound's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of SoundHound is estimated to be -0.019175 with the future projection ranging from a low of -0.045 to a high of -0.005. Please be aware that this consensus of annual earnings estimates for SoundHound AI is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
0.0
-0.04
Lowest
Expected EPS
-0.019175
-0.005
Highest

SoundHound Earnings Projection Consensus

Suppose the current estimates of SoundHound's value are higher than the current market price of the SoundHound stock. In this case, investors may conclude that SoundHound is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and SoundHound's stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 31st of December 2026Current EPS (TTM)
952.99%
0.0
-0.019175
-0.9

SoundHound Ownership Allocation

SoundHound AI shows a total of 387.56 Million outstanding shares. Over half of SoundHound's outstanding shares are owned by institutional holders. These institutional holders are typically referred to as corporate investors that take positions in a given instrument to benefit from reduced trade commissions. On December 18, 2025, Representative Cleo Fields of US Congress acquired under $15k worth of SoundHound AI's common stock.

SoundHound Profitability Analysis

The company reported the previous year's revenue of 84.69 M. Net Loss for the year was (350.68 M) with profit before overhead, payroll, taxes, and interest of 58.98 M.

About SoundHound Valuation

We use absolute and relative valuation methodologies to arrive at the intrinsic value of SoundHound AI. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of SoundHound AI based exclusively on its fundamental and basic technical indicators. By analyzing SoundHound's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of SoundHound's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of SoundHound. We calculate exposure to SoundHound's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of SoundHound's related companies.
Last ReportedProjected for Next Year
Gross Profit47.6 M50 M
Pretax Profit Margin(3.82)(4.02)
Operating Profit Margin(3.63)(3.81)
Net Loss(3.73)(3.91)
Gross Profit Margin 0.44  0.48 

SoundHound Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
Common Stock Shares Outstanding338.5 M
Forward Price Earnings227.2727

SoundHound Current Valuation Indicators

SoundHound's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final SoundHound's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as SoundHound, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use SoundHound's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes SoundHound's worth.
When determining whether SoundHound AI is a strong investment it is important to analyze SoundHound's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact SoundHound's future performance. For an informed investment choice regarding SoundHound Stock, refer to the following important reports:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in SoundHound AI. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population.
You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Will Application Software sector continue expanding? Could SoundHound diversify its offerings? Factors like these will boost the valuation of SoundHound. If investors know SoundHound will grow in the future, the company's valuation will be higher. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every SoundHound data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Earnings Share
(0.90)
Revenue Per Share
0.376
Quarterly Revenue Growth
0.676
Return On Assets
(0.18)
Return On Equity
(0.90)
SoundHound AI's market price often diverges from its book value, the accounting figure shown on SoundHound's balance sheet. Smart investors calculate SoundHound's intrinsic value - its true economic worth - which may differ significantly from both market price and book value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Since SoundHound's trading price responds to investor sentiment, macroeconomic conditions, and market psychology, it can swing far from fundamental value.
Please note, there is a significant difference between SoundHound's value and its price as these two are different measures arrived at by different means. Investors typically determine if SoundHound is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SoundHound's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.