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Sonos, Inc (SONO) Fair Value & Analysis

Technology · US · Market cap $1.7B

SI Sonos, Inc logo Sonos, Inc SONO · US
Price$15.64
Fair Value$2.16
Upside-86.2%
Quality68/100
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Weak Growth
Thin margins · 1.6% net margin
Low debt · generates free cash flow
Mixed vs. peers (6/13)
Narrow moat 28/100
Evidence: Medium Range $1.86 – $2.46 Share as image

Fair value as of: Jul 18, 2026

From 12 valuation models · updated 23 days ago

Fair value updated Jul 18, 2026, revised from $10.15 to $2.16 (−78.7%) since Jun 24, 2026. Share price +13.2% over the past month.

A solid business, but screening 86% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case ($2.46). The favourable scenario is already priced in.
  • Solid but not exceptional quality (68/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

$41.31 $7.70 Fair Value $2.16 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range $7.70 – $41.31 · fair‑value band $1.86 – $2.46 · the $15.64 price screens above the $2.16 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Sonos, Inc (SONO) currently trades at $15.64, while our model-based Fair Value estimate is $2.16, implying the stock looks roughly 86.2% overvalued today. The Quality Score stands at 68/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Sonos, Inc generated revenue of $1.5B at a net margin of 1.6%. Revenue grew 8.4% year over year. It earns a return on equity of 6.2%. The balance sheet holds a net cash position of $115M. Fundamentals as of Jul 18, 2026

Our scenario range runs from $1.86 (bear case) to $2.46 (bull case); at $15.64, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 21% below its 52-week high and 55% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -16% fair-value upside, at -86%, SONO screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $9.27 $11.45 $14.33 80
Rev-Margin DCF $9.03 $12.61 $16.64 74
Gordon GGM $9.64 $12.68 $15.45 70
All 12 models by family
DCF Models
FCF DCF $9.10 $11.42 $14.68 38
5Y Revenue Exit $9.03 $12.47 $16.96 39
5Y EBITDA Exit $5.06 $5.61 $6.22 41
10Y Revenue Exit $8.80 $11.64 $14.96 36
10Y EBITDA Exit $6.75 $7.47 $8.17 37
Dividend Discount
Gordon GGM $9.64 $12.68 $15.45 70
DDM Multi-Stage $9.64 $12.70 $15.86 61
Multiples
EV/EBITDA $2.21 $2.51 $2.81 54
EV/Revenue $9.58 $13.12 $16.66 43
Asset-Based
NCAV (Graham) $1.49 $2.00 $2.98 50
Growth DCF
Growth DCF $9.27 $11.45 $14.33 80
Rev-Margin DCF $9.03 $12.61 $16.64 74

Widest divergence: Dividend Discount ($12.68) versus Asset-Based ($2.00). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $1.5B
Revenue growth (YoY) +8.4%
Net margin 1.6%
Return on equity 6.2%
Free cash flow $108M FY2025
P/E ratio 84.2
More key figures
Operating margin -9.1%
EPS (TTM) $0.1700
EPS growth (YoY) +87.5%
Net cash $115M FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 68/100

Of which business quality 66 · Market factors (momentum, volatility) 47

Profitability 40
Margins and returns on capital today
Quality Growth 38
Are margins and returns improving?
Cashflow 52
Earnings quality: real cash, not paper profit
Fin. Strength 82
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 12
Calm price path (market factor)
Momentum 57
Price trend over the last 3–12 months (market factor)
52W Momentum 70
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells audio products and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers wireless, portable, plug-in, and home theater speakers; and headphones, soundbars, components, and accessories.

Full company description

Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells audio products and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers wireless, portable, plug-in, and home theater speakers; and headphones, soundbars, components, and accessories. It offers its products through physical stores, websites, online retailers, and custom installers. The company was formerly known as Rincon Audio, Inc. and changed its name to Sonos, Inc. in May 2004. Sonos, Inc. was incorporated in 2002 and is based in Santa Barbara, California.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Sonos, Inc reported revenue of $1.4B in FY2025 versus $1.7B in FY2021, a compound −4.2%/yr. Reported net income was −$61.1M in FY2025.

Growth Quality 32/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
$1.4B
Latest YoY
−4.9%
Avg. growth/yr (3Y)
−6.3%
Avg. growth/yr (5Y)
+1.7%
Avg. growth/yr (10Y)
+5.5%
Revenue −4.2%/yr
FY21 $1.7B
FY22 $1.8B
FY23 $1.7B
FY24 $1.5B
FY25 $1.4B
Net income
FY21 $159M
FY22 $67.4M
FY23 −$10.3M
FY24 −$38.1M
FY25 −$61.1M

SONO screens 86% overvalued. Compare with Apple Inc →

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Cite: Fair Value Calculator (2026). "Sonos, Inc Fair Value". https://www.fairvalue-calculator.com/stock/SONO

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Consumer Electronics · 129 stocks

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.

Quality Score 68 · Top 25%
Fair Value upside −86% · Bottom 25%
Return on equity (TTM) 6% · Above median
Return on assets 4% · Top 25%
Net margin (TTM) 2% · Above median
Operating margin (TTM) -9% · Below median
Revenue growth 8% · Above median
Debt / equity 0.05× · Lower than median

Valuation Multiples vs Consumer Electronics median · lower = cheaper

P/E (TTM) 84.2× · Pricier than 75% of peers
P/B 4.80× · Pricier than 75% of peers
P/S (TTM) 1.17× · Pricier than median
P/FCF 15.8× · Pricier than 75% of peers
EV/EBITDA 15.0× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 8
FUTURE 42 · sector 13
PAST 25 · sector 10
HEALTH 97 · sector 97
DIVIDEND 0 · sector 29

VALUE 0: the price sits above our fair-value range.

Insider activity: 66/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Consumer Electronics stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
Apple Inc AAPL $313.33 $122.91 -61%
Samsung Electronics Co 005930 255,000 KRW 138,019 KRW -46%
Sony Group SONYN 366.00 MXN 468.94 MXN +28%
Xiaomi Corporation 1810 HK$26.88 HK$39.84 +48%
LG Electronics Inc 066570 179,000 KRW 101,531 KRW -43%
Sharetronic Data Technology Co 300857 ¥277.96 ¥35.89 -87%
Huaqin Co 603296 ¥78.20 ¥65.69 -16%
Goertek Inc 002241 ¥22.25 ¥18.86 -15%
LG Corp 003550 102,400 KRW 93,881 KRW -8%
Anker Innovations Limited 300866 ¥105.92 ¥78.52 -26%

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Frequently asked questions

Is Sonos, Inc (SONO) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of $2.16 versus a price of $15.64, about −86% (overvalued).
What is the fair value of SONO?
Our model-based fair value for Sonos, Inc is $2.16 (as of Jul 18, 2026), built from audited fundamentals. The current price is $15.64.
What is the quality score of SONO?
Sonos, Inc has a Quality Score of 68/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Sonos, Inc (SONO)?
Sonos, Inc reported trailing-twelve-month revenue of about $1.5B (latest available figure, as of Jul 18, 2026).
What is the net profit margin of SONO?
The net profit margin of Sonos, Inc is about 1.6%, meaning it keeps roughly 1.6% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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