Income Statement Flow (TTM) | Source: Yahoo Finance
Source: Cash Flow Statement | LFCF = Operating Cash Flow - CapEx - Interest Expense
Fair Value: $-17.76
-312.1% Downside
Stock appears overvalued with 312.1% downside risk. Consider waiting for better entry point.
SoundHound AI, Inc. (SOUN) currently trades at $8.37, representing a -312.1% premium to our calculated fair value of $-17.76.
Key Strengths: Strong revenue growth (67.6%).
Key Risks: Weak interest coverage (-96.7x); Unprofitable (negative margins); Significant YTD decline (-21.0%).
Wall Street consensus is none with a mean price target of $16.31.
| Criterion | Status | Notes |
|---|---|---|
| ≤4 operating segments | PASS | Segment count estimated from sector classification. Verify in 10-K for accuracy. |
| Top 2 segments ≥70% of revenue | PASS | Revenue concentration estimated. Verify segment breakdown in 10-K. |
| ≤3 material geographic regions | PASS | Most US-listed companies report US vs International (2 regions). |
| No exotic debt instruments or off-balance-sheet complexity | PASS | Review 10-K for convertibles, derivatives, and off-balance-sheet items. |
Recommendation: PROCEED TO VALUATION
SoundHound AI, Inc. develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers in the United States, Korea, France, Japan, Germany, and internationally. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant. The company's products also include CaiNET software that uses machine learning to enhance how domains work together to handle queries; CaiLAN software that arbitrates responses, so users get answers from the right domain; Dynamic Interaction a real-time, multimodal customer service interface; Smart Ordering which offers an easy-to-understand voice assistant for restaurants; automatic speech recognition; natural language understanding; wake words; custom domains; text-to-speech; Employee Assist; and embedded voice solutions. The company was founded in 2005 and is headquartered in Santa Clara, California.
| Market Capitalization | $3.52B |
| (+) Total Debt | $0.00B |
| (-) Cash & Equivalents | $0.27B |
| Net Debt | ($0.26B) - Net Cash |
| Enterprise Value | $3.25B |
| Metric | Value | What It Means |
|---|---|---|
| Net Debt / EBITDA | N/A | N/A |
| Interest Coverage | -96.7x | Weak - Concern |
| Debt / Equity | 1.2% | Conservative |
| Current Ratio | 5.15 | Healthy - can easily pay short-term bills |
Overall: Balance sheet is adequate with some areas to monitor.
Industry: Software - Application | Data: TTM (Trailing 12 Months) as of 2026-02-02 | Source: Yahoo Finance
| Company | Market Cap | P/E | Forward P/E | EV/EBITDA | Profit Margin |
|---|---|---|---|---|---|
| INTU | $136.3B | 33.6x | 18.5x | 0.0x | 21.2% |
| ADBE | $122.4B | 17.5x | 11.1x | 13.0x | 30.0% |
| SNPS | $87.9B | 56.8x | 27.2x | 75.5x | 18.9% |
| CDNS | $79.2B | 74.9x | 36.1x | 42.6x | 20.4% |
| SOUN (Target) | $3.5B | 0.0x | -109.2x | -21.8x | -210.7% |
| ANSS | N/A | 0.0x | 0.0x | 0.0x | 0.0% |
| Peer Average (excl. target) | - | 45.2x | 22.9x | 42.6x | 20.4% |
| Method | Inputs | Fair Value |
|---|---|---|
| Equity (TTM EPS) | EPS: $-0.90 x 40.7x P/E | $-36.63 |
| Equity (Forward EPS) | EPS: $-0.08 x 40.7x P/E | $-3.12 |
| EV-Based (EBITDA) | EBITDA: $-0.14B x 38.3x | $-13.52 |
| Headline Fair Value | Average of all methods (spread within threshold) | $-17.76 |
Assessment: Concerning profile. Multiple risk factors present.
SOUN trades at 0.0x TTM P/E and -109.2x Forward P/E. This compares to peer averages of 45.2x TTM and 22.9x Forward P/E.
Warning: Negative levered free cash flow indicates the company is consuming cash.
8 analysts cover this stock with a consensus none rating. Price targets range from $11 to $26, with a mean of $16.
16.37 - Neutral/Low Fear
Score: 62/100
143.65
SPY YTD: 17.7% | RSP YTD: 12.3%
No customer/supplier data available for this company. Data is curated from SEC 10-K filings for major tech companies.
Track Record: 5 beats, 1 misses, 2 in-line out of 8 quarters | 62% Beat Rate
| Date | EPS Estimate | EPS Actual | Result | Surprise % |
|---|---|---|---|---|
| 2025-11-06 | $-0.09 | $-0.27 | MISS | -194.5% |
| 2025-08-07 | $-0.05 | $-0.03 | BEAT | 42.9% |
| 2025-05-08 | $-0.06 | $-0.06 | MET | 5.3% |
| 2025-02-27 | $-0.08 | $-0.05 | BEAT | 37.5% |
| 2024-11-12 | $-0.07 | $-0.04 | BEAT | 42.9% |
| 2024-08-08 | $-0.08 | $-0.04 | BEAT | 52.9% |
| 2024-05-09 | $-0.08 | $-0.07 | BEAT | 15.2% |
| 2024-02-29 | $-0.06 | $-0.06 | MET | -0.4% |
All financial data sourced from:
Click any blue number throughout the report to view its source.
This analysis is generated automatically using publicly available data and should not be considered as financial advice. All figures are sourced from Yahoo Finance and may contain inaccuracies. Always verify data with primary sources (SEC filings, company IR) before making investment decisions.
Past performance does not guarantee future results. Investing involves risk, including the possible loss of principal.
Levered FCF is cash that can't be faked. Unlike earnings which can be manipulated through accounting (depreciation schedules, revenue recognition, etc.), cash flow is simple: the money is either in the bank or it's not.
This metric shows how much actual cash the company generates after paying for:
A company with strong Levered FCF can pay dividends, buy back shares, pay down debt, or invest in growth - all from real cash, not accounting profits.
Customers and suppliers report earnings BEFORE the company you're analyzing. Their results give you early signals about demand and supply chain health.
Customer Example: If Microsoft (AMD customer) beats revenue estimates by 20%, it likely means they bought more chips than analysts expected. This is bullish for AMD's upcoming earnings.
Supplier Example: If TSMC (AMD supplier) reports strong demand from AMD, that confirms AMD's production is ramping up.
By the time AMD reports, you already have data points from 5+ related companies. Smart analysts piece these together to predict earnings before they're announced.
Not all revenue is equal. Different business segments have different growth rates and profit margins.
For example, AMD's Data Center segment has ~40% margins while Gaming might be ~15%. A shift toward Data Center means higher overall profitability even if total revenue stays flat.
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