Ooma Inc (OOMA) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Ooma Inc stock $4.58, price $18.00, that is 74.6% below the price, quality 48 out of 100. Rating: strongly overvalued. Calculated from audited financials with 22 of our 26 valuation models and 37 quality factors, updated daily.
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Ooma Inc
OOMA · USOur calculation puts a fair price 75% below what the stock costs today.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 7, 2026.
How to read this chart
60‑month range $6.71 – $23.78 · fair‑value band $3.20 – $5.95 · the $18.00 price screens above the $4.58 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 7, 2026.
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Company profile
Ooma, Inc. provides communications services and related technologies for businesses and consumers in the United States and Canada.
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The company's products and services include Ooma Office, a cloud-based multi-user communications system for small and medium-sized businesses; and Ooma Enterprise, a unified-communications-as-a-service (UCaaS) solution.
It also provides Ooma AirDial, a plain old telephone service; PureVoice HD, a residential phone services; Ooma Basic that provides unlimited personal calling within the United States; and Ooma Premier, a suite of advanced calling features on a monthly or annual subscription basis.
In addition, the company offers Ooma Telo, a home communications solution to serve as the primary phone line in the home; Ooma Telo Air, a wireless Ooma Telo with built-in Wi-Fi and Bluetooth; and Ooma Telo LTE, which combines the Ooma Telo base station with the Ooma LTE Adapter and battery back-up. Further, it provides Ooma Mobile HD app that allows users to make and receive phone calls and access Ooma features and settings; 2600Hz provides business communication applications; Talkatone mobile app; OnSIP, an UCaaS solution; FluentStream for voice, text, mobile, and call center features, as well as supports remote/hybrid workforces; and Phone.com that provides UCaaS solutions, such as voice, video, text, specialized call handling, and desktop and mobile applications for small and medium-sized organizations.
The company offers its products through direct channels, retailers, value-added resellers, technology services distributors, and other resellers, as well as online and sales representatives. Ooma, Inc. was incorporated in 2003 and is headquartered in Sunnyvale, California.
Stock analysis
Ooma Inc (OOMA) currently trades at $18.00, while our model-based Fair Value estimate is $4.58, 75% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth DCF group reads highest at a median of $7.75 per share, and 0 of the 22 models we run sit above the $18.00 price.
Bear case: the Economic Profit group reads lowest at $1.28, and 22 of the 22 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $3.20 (bear) to $5.95 (bull), the price of $18.00 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 48/100 (below-average quality), in the Technology sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Ooma Inc reported revenue of $274M in FY2026 versus $192M in FY2022, a compound +9.2%/yr. Reported net income was $6.5M in FY2026.
Key figures
Market cap $514M Small · P/E ratio 46.2 · P/S ratio 1.68 · EPS (TTM) $0.3900 · Net margin 3.6% · Return on equity 11.7% · Return on assets (EBIT) −2.2% (5-year average) · Operating margin 4.4%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 39 out of 100 (low confidence).
What moves the price
The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat.
The share trades about 23% below its 52-week high and 70% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at 10% fair-value upside, at −75%, OOMA screens richer than that median.
Fair Value models
All 22 models by family
Quality Score breakdown
It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.
Insider trades
In the last 6 months, 7 officers or directors sold shares worth $5.1M and none bought.
- SaleNamrata SabharwalVP & Chief Accounting Officer2× since Sep 10, 2026: 3,981 shares, avg. $22.81$90,799Sep 24, 2026
- SaleSusan ButenhoffDirector9,000 shares at $22.03$198,270Sep 22, 2026
- SaleJenny C YehSVP & Chief Legal Officer, Director9× since Jul 1, 2026: 46,156 shares, avg. $22.25$1.0MSep 17, 2026
- SaleEric B StangPresident & CEO, Director6× since Mar 6, 2026: 160,505 shares, avg. $20.02$3.2MSep 14, 2026
- SaleShigeyuki HamamatsuSVP & Chief Financial Officer3× since Mar 6, 2026: 43,293 shares, avg. $17.31$749,332Sep 1, 2026
- SaleRussell MannDirector20,000 shares at $18.35$367,075Jun 24, 2026
- SaleWilliam D PearceDirector3,000 shares at $17.98$53,940Jun 10, 2026
Plus 40 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Source: SEC Form 4, as of Nov 6, 2026. All filings at the SEC ↗
Revenue & earnings trend
Growth Forecast
OOMA screens overvalued: fair value 75% below the price. Compare with SAP SE →
Compare Ooma Inc with another stock
Price, fair value, quality and upside side by side.
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Software - Application · 630 stocks
Valuation Multiplesvs Software - Application median · lower = cheaper
Strength profile in five axes (Snowflake)
VALUE 0: the price sits above our fair-value range.
Context: sector, industry, market
- Is the Communication Services sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- Debt-to-equity by industry
- Price/FCF by industry
- PEG screener for stocks with fair value
- Undervalued stocks: Communication Services
- Undervalued stocks: US Stocks
- Valuation of the USA market
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Software - Application stocks, each showing price versus our Fair Value estimate.
| Stock | Price | Fair Value | vs Fair Value | Compare |
|---|---|---|---|---|
| Adobe Inc ADBE | $239.30 | $463.72 | +94% | vs OOMA |
| Salesforce, Inc CRM | $213.65 | $342.73 | +60% | vs OOMA |
| Uber Technologies, Inc UBER | $68.59 | $101.28 | +48% | vs OOMA |
| Intuit Inc INTU | $341.50 | $459.14 | +34% | vs OOMA |
| ServiceNow, Inc NOW | $101.97 | $112.60 | +10% | vs OOMA |
| SAP SE SAP | €210.75 | €173.59 | −18% | vs OOMA |
| Cadence Design Systems, Inc CDNS | $319.92 | $225.48 | −30% | vs OOMA |
| Automatic Data Processing, Inc ADP | $303.35 | $150.40 | −50% | vs OOMA |
| Shopify Inc SHOP | $148.91 | $64.96 | −56% | vs OOMA |
| Snowflake Inc SNOW | $275.88 | $73.81 | −73% | vs OOMA |
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Key figures of Ooma Inc
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