Sonos Stock Valuation

SONO
 Stock
  

USD 17.92  0.12  0.67%   

What is the current enterprise value of Sonos Inc? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Sonos, is its stock price multiplied by the total number of shares outstanding, calculating Sonos' enterprise value requires a different approach. It uses Sonos' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The value of Free Cash Flow is estimated to slide to about (2.3 M). The Enterprise Value is projected to slide to about 564.1 M.
Sonos Inc has a current Real Value of $24.79 per share. The regular price of the company is $17.92. At this time, the company appears to be undervalued. Our model measures the value of Sonos Inc from inspecting the company fundamentals such as Shares Outstanding of 127.13 M, return on equity of 25.18 %, and Operating Margin of 9.29 % as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend picking up undervalued stocks and discarding overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
  
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Sonos Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Sonos's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Sonos Most Recent Valuation Data

Price Book
3.75
Enterprise Value
1.9 B
Enterprise Value Ebitda
10.82
Price Sales
1.27
Forward PE
37.31
Trailing PE
19.27
Enterprise Value Revenue
1.08
Undervalued
Today 17.92
Please note that Sonos' price fluctuation is not too volatile at this time. Calculation of the real value of Sonos Inc is based on 3 months time horizon. Increasing Sonos' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Sonos Inc is useful when determining the fair value of the Sonos stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Sonos. Since Sonos is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Sonos Stock. However, Sonos' 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.
24.79
Real Value
28.75
Upside
Estimating the potential upside or downside of Sonos Inc helps investors to forecast how Sonos 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 Sonos more accurately as focusing exclusively on Sonos' fundamentals will not take into account other important factors:
Earnings
Estimates (4)
LowProjected EPSHigh
1.081.291.55
Details
Hype
Prediction
LowEstimated ValueHigh
14.0117.9721.93
Details
Naive
Forecast
LowNext ValueHigh
14.4318.3922.35
Details
6 Analysts
Consensus
LowTarget PriceHigh
40.0047.0050.00
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 Sonos' intrinsic value based on its ongoing forecasts of Sonos' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Sonos' closest peers. When choosing an evaluation method for Sonos Inc, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Sonos Investments

11.48 Million

Share

Sonos Valuation Drivers Correlation

Many accounts on the financial statements of Sonos Inc are highly interrelated and sometimes correlated. Consequently, when conducting Sonos's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Sonos
Click cells to compare fundamentals

Sonos Valuation Trend

Knowing Sonos' actual value is paramount for traders to make sound investment determinations. Sonos' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Sonos' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Sonos' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Sonos Market Cap

Sonos Inc is currently regarded as top stock in market capitalization category among related companies. Market capitalization of Consumer Electronics industry is at this time estimated at about 2.42 Trillion. Sonos adds roughly 2.59 Billion in market capitalization claiming only tiny portion of stocks in Consumer Electronics industry.
Capitalization  Valuation  Total debt  Revenue  Workforce

Sonos Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Sonos's current stock value. Our valuation model uses many indicators to compare Sonos value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Sonos competition to find correlations between indicators driving Sonos's intrinsic value. More Info.
Sonos Inc is currently regarded as top stock in price to book category among related companies. It is currently regarded as top stock in price to earning category among related companies reporting about  3.96  of Price to Earning per Price to Book. Price to Earnings Ratio is expected to rise to 653.76 this year. Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to rise to about 27.2 M this year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Sonos by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Sonos' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Sonos' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Sonos' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Sonos and how it compares across the competition.

About Sonos Valuation

The equity valuation mechanism determines the current worth of Sonos Inc on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Sonos Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Sonos Inc based exclusively on its fundamental and basic technical indicators. By analyzing Sonos's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Sonos's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Sonos. We calculate exposure to Sonos's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Sonos's related companies.
Last ReportedProjected for 2022
Gross Profit195 M160.6 M
Profit Margin(1.43) (1.54) 
Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Sonos, Inc. was incorporated in 2002 and is headquartered in Santa Barbara, California. Sonos operates under Consumer Electronics classification in the United States and is traded on NASDAQ Exchange. It employs 1525 people.

Sonos Valuation Growth Rates

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. Note, investing in growth stocks can be very risky. If the company such as Sonos does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio1.56
Earnings Quarterly Growth-6.70%
Revenue Growth2.90%
Enterprise Value To Ebitda11.21
Earnings Growth-13.90%
Enterprise Value To Revenue1.27

Sonos Current Valuation Indicators

Valuation refers to the process of determining the present value of Sonos Inc and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Sonos we look at many different elements of the entity such as Sonos's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Sonos' valuation analysis is also 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 Sonos' 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 Sonos, 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 Sonos' 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 Sonos' worth.
Additionally, take a look at World Market Map. Note that the Sonos Inc information on this page should be used as a complementary analysis to other Sonos' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

Complementary Tools for Sonos Stock analysis

When running Sonos Inc price analysis, check to measure Sonos' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Sonos is operating at the current time. Most of Sonos' value examination focuses on studying past and present price action to predict the probability of Sonos' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Sonos' price. Additionally, you may evaluate how the addition of Sonos to your portfolios can decrease your overall portfolio volatility.
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Is Sonos' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Sonos. If investors know Sonos will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Sonos listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.5
Market Capitalization
2.3 B
Quarterly Revenue Growth YOY
0.2
Return On Assets
0.0847
Return On Equity
0.23
The market value of Sonos Inc is measured differently than its book value, which is the value of Sonos that is recorded on the company's balance sheet. Investors also form their own opinion of Sonos' value that differs from its market value or its book value, called intrinsic value, which is Sonos' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Sonos' market value can be influenced by many factors that don't directly affect Sonos' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Sonos' value and its price as these two are different measures arrived at by different means. Investors typically determine Sonos value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sonos' 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.