SoundHound AI Inc (SOUN) fair value: what the stock is really worth
As of Oct 2, 2026: fair value of SoundHound AI Inc $1.09, price $5.84, upside -81.3%, quality 30 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
53‑month range $0.9657 – $24.23 · fair‑value band $0.9700 – $1.21 · the $5.84 price screens above the $1.09 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 24, 2026.
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SoundHound AI, Inc. provides independent voice artificial intelligence (AI) solutions that enables businesses across the automotive, TV, IoT, and customer service industries to deliver conversational experiences to customers in the United States, Korea, France, Japan, Germany, and internationally.
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SoundHound AI, Inc. provides independent voice artificial intelligence (AI) solutions that enables businesses across the automotive, TV, IoT, and customer service industries to deliver conversational experiences to customers in the United States, Korea, France, Japan, Germany, and internationally. The company offers Houndify platform, which provides 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, a voice assistant with integrated generative AI that integrates with knowledge domains, pulling real-time data, such as weather, sports, stocks, flight status, restaurants, and other data; and SoundHound Smart Answering, which offers customer establishments the option to build an easy to use custom AI-powered voice assistant. It also provides CaiNET software that uses machine learning to enhance how domains work together to handle complex 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 edge and cloud connectivity, which includes embedded voice solutions. In addition, the company offers Amelia Platform, which builds AI agents for enterprises; Chat AI for Automotive; Dynamic Drive-Thru for GenAI; Voice Commerce, which connects drivers and merchants with Voice AI; Autonomics Platform; Custom Voice AI Solutions; Voice AI Platform; and SoundHound Music App. SoundHound AI, Inc. was founded in 2005 and is headquartered in Santa Clara, California.
Stock analysis
SoundHound AI Inc (SOUN) currently trades at $5.84, while our model-based Fair Value estimate is $1.09, 81.3% below the price, so the stock looks overvalued today.
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Valuation
How firm this estimate is: it rests on 2 models at a data quality of 95/100, which puts the evidence level at low.
Scenario range: $0.9700 (bear) to $1.21 (bull), the price of $5.84 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 30/100 (below-average quality), in the Technology sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
SoundHound AI Inc reported revenue of $169M in FY2025 versus $21.2M in FY2021, a compound +68.0%/yr. Reported net income was −$14.0M in FY2025.
Key figures
Market cap $2.7B · P/S ratio 14.8 · EPS (TTM) $−0.7000 · Net margin −8.3% · Return on equity −39.4% · Return on assets (EBIT) −104% · Operating margin −139% · Revenue (TTM) $184M.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 38 out of 100 (low confidence).
What moves the price
The share trades about 73% below its 52-week high and 2% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at −8% fair-value upside, at −81%, SOUN screens richer than that median.
Fair Value models
Bear $0.9700Fair Value $1.09Bull $1.21
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.38/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+99.4%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+75.7%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+67.0%
Start year 2020 (pandemic)
Revenue growth 6 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+67.4%
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Profit margin (trend) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
−507.1% (2020) → −13.8% (2025)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
News mood ⓘNews mood, the average tone of recent news (99 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
Price, fair value, quality and upside side by side.
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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 · 687 stocks
Beats the industry median on 1/9 measures
Overall it trails its industry peers.
Valuation
Quality Score40 · Bottom 25%
Fair Value upside−82.0% · Bottom 25%
Profitability
Return on assets−19.7% · Bottom 25%
Net margin (TTM)−91.8% · Bottom 25%
Operating margin (TTM)−139.3% · Bottom 25%
Growth and dividend
Revenue growth51.7% · Top 25%
Balance sheet
Debt / equity0.18× · Above median
Valuation Multiplesvs Software - Application median · lower = cheaper
P/B5.89× · Priciest 25%
P/S (TTM)14.85× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 27
FUTURE (revenue growth)100· sector 41
PAST (return on equity)0· sector 15
HEALTH (low debt)91· sector 97
DIVIDEND (yield)0· sector 30
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "SoundHound AI Inc Fair Value". https://www.fairvalue-calculator.com/stock/SOUN
Frequently asked questions
Is SoundHound AI Inc (SOUN) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of $1.09 versus a price of $5.84, about −81% upside (overvalued).
What is the fair value of SOUN?
Our model-based fair value for SoundHound AI Inc is $1.09 (as of Sep 24, 2026), built from audited fundamentals. The current price: $5.84.
What is the quality score of SOUN?
SoundHound AI Inc has a Quality Score of 30/100. 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 price target for SoundHound AI Inc (SOUN)?
Our model-based price target is the fair value of $1.09 (as of Sep 24, 2026) from 2 valuation models. Cautious scenario $0.9700, optimistic scenario $1.21. It is a calculation from audited fundamentals, not an analyst target.
What is the SoundHound AI Inc stock forecast for 2026?
Our models put fair value at $1.09, about −81% upside versus a price of $5.84 (overvalued). Cautious scenario $0.9700, optimistic scenario $1.21. The calculation is refreshed regularly with new filings.
What is the revenue of SoundHound AI Inc (SOUN)?
SoundHound AI Inc reported trailing-twelve-month revenue of about $184M (latest available figure, as of Sep 24, 2026).
What is the intrinsic value of SoundHound AI Inc (SOUN)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For SoundHound AI Inc it is $1.09 per share (as of Sep 24, 2026), against a price of $5.84. It is the blended result of 2 valuation models (cash flow, earnings, asset, dividend).
Is SoundHound AI Inc stock overvalued or undervalued in 2026?
As of Sep 24, 2026, SOUN trades above its calculated fair value: price $5.84, fair value $1.09, a gap of about −81% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of SOUN?
No. The price is what the market pays today ($5.84); the fair value is what the company's own numbers justify ($1.09). For SoundHound AI Inc the two are $4.75 per share apart. That gap is exactly why we show both numbers side by side.
How much is SoundHound AI Inc worth?
The market values SoundHound AI Inc at about $2.7B (market capitalisation, as of Sep 24, 2026). Per share that is $5.84; our models calculate a fair value of $1.09 per share.
What do the bullish and bearish scenarios say about SOUN?
Our models span a range for SoundHound AI Inc: cautious scenario $0.9700, base $1.09, optimistic $1.21 per share (as of Sep 24, 2026, price $5.84). The range comes from different growth and margin assumptions, not from analyst opinions.
How solid is the balance sheet of SoundHound AI Inc (SOUN)?
Balance-sheet figures for SoundHound AI Inc (as of Sep 24, 2026): return on equity −39.4%, debt of 0.18 per unit of equity. They feed the Quality Score of 30/100, which measures business quality independently of the share price.
How far is SOUN from its 52-week high?
SoundHound AI Inc trades at $5.84, about 73% below its 52-week high of $21.40 and 2% above the low of $5.70 (as of Oct 2, 2026). Distance from the high says nothing about value: that is what the fair value of $1.09 is for.
Which stocks are comparable to SoundHound AI Inc?
From the same area (Technology) we also value SAP SE, Salesforce, Inc, Shopify Inc, ServiceNow, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is SoundHound AI Inc stock attractive at the current price?
The data as of Sep 24, 2026: price $5.84, calculated fair value $1.09 (−81%), Quality Score 30/100, from 2 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of SOUN calculated?
We run SoundHound AI Inc through 2 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $1.09, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. SoundHound AI Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of SoundHound AI Inc (SOUN)?
The closing price on Oct 2, 2026 was $5.84. Our model-based fair value is $1.09, about −81% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with SoundHound AI Inc right now?
The price sits above even our optimistic bull case ($1.21). The favourable scenario is already priced in. Weak quality (30/100) and above fair value at the same time, the margin of safety is missing on both counts. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
Key figures of SoundHound AI Inc
How large is the market capitalisation of SoundHound AI Inc (SOUN)?
The market capitalisation of SoundHound AI Inc is $2.7B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of SoundHound AI Inc (SOUN)?
The price-to-sales ratio of SoundHound AI Inc is 14.8 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of SoundHound AI Inc (SOUN)?
Earnings per share at SoundHound AI Inc are $−0.7000. Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of SoundHound AI Inc (SOUN)?
The net margin of SoundHound AI Inc is −8.3% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of SoundHound AI Inc (SOUN)?
The return on equity (ROE) of SoundHound AI Inc is −39.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of SoundHound AI Inc (SOUN)?
On an EBIT basis the return on assets of SoundHound AI Inc is −104% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of SoundHound AI Inc (SOUN)?
The operating margin of SoundHound AI Inc is −139% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at SoundHound AI Inc (SOUN)?
Revenue at SoundHound AI Inc is growing +51.7% versus a year earlier (3y avg +75.7%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How much free cash flow does SoundHound AI Inc (SOUN) generate?
The free cash flow of SoundHound AI Inc is −$99.1M (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net cash does SoundHound AI Inc (SOUN) hold?
SoundHound AI Inc holds more cash than debt, $244M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Thin data
Sep 24, 2026