SOUN PE Ratio & Valuation,Is SOUN Overvalued

SOUN Relative Valuation

SOUN's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, SOUN is overvalued; if below, it's undervalued.

Historical Valuation

SoundHound AI Inc (SOUN) is now in the Fair zone, suggesting that its current forward PS ratio of 20.67 is considered Fairly compared with the five-year average of -19.24. The fair price of SoundHound AI Inc (SOUN) is between 3.90 to 13.79 according to relative valuation methord.

Relative Value

Fair Zone

3.90-13.79

Current Price：11.00

Fair

-28.19

-250.71

EV/EBITDA

SoundHound AI Inc. (SOUN) has a current EV/EBITDA of -250.71. The 5-year average EV/EBITDA is -84.52. The thresholds are as follows: Strongly Undervalued below -361.14, Undervalued between -361.14 and -222.83, Fairly Valued between 53.79 and -222.83, Overvalued between 53.79 and 192.10, and Strongly Overvalued above 192.10. The current Forward EV/EBITDA of -250.71 falls within the Undervalued range.

-29.00

EV/EBIT

SoundHound AI Inc. (SOUN) has a current EV/EBIT of -29.00. The 5-year average EV/EBIT is -21.52. The thresholds are as follows: Strongly Undervalued below -52.42, Undervalued between -52.42 and -36.97, Fairly Valued between -6.07 and -36.97, Overvalued between -6.07 and 9.38, and Strongly Overvalued above 9.38. The current Forward EV/EBIT of -29.00 falls within the Historic Trend Line -Fairly Valued range.

20.67

SoundHound AI Inc. (SOUN) has a current PS of 20.67. The 5-year average PS is 18.73. The thresholds are as follows: Strongly Undervalued below -4.49, Undervalued between -4.49 and 7.12, Fairly Valued between 30.33 and 7.12, Overvalued between 30.33 and 41.94, and Strongly Overvalued above 41.94. The current Forward PS of 20.67 falls within the Historic Trend Line -Fairly Valued range.

-100.53

P/OCF

SoundHound AI Inc. (SOUN) has a current P/OCF of -100.53. The 5-year average P/OCF is -40.85. The thresholds are as follows: Strongly Undervalued below -132.56, Undervalued between -132.56 and -86.71, Fairly Valued between 5.00 and -86.71, Overvalued between 5.00 and 50.86, and Strongly Overvalued above 50.86. The current Forward P/OCF of -100.53 falls within the Undervalued range.

-90.71

P/FCF

SoundHound AI Inc. (SOUN) has a current P/FCF of -90.71. The 5-year average P/FCF is -35.51. The thresholds are as follows: Strongly Undervalued below -110.42, Undervalued between -110.42 and -72.97, Fairly Valued between 1.95 and -72.97, Overvalued between 1.95 and 39.40, and Strongly Overvalued above 39.40. The current Forward P/FCF of -90.71 falls within the Undervalued range.

SoundHound AI Inc (SOUN) has a current Price-to-Book (P/B) ratio of 11.12. Compared to its 3-year average P/B ratio of 17.53 , the current P/B ratio is approximately -36.57% higher. Relative to its 5-year average P/B ratio of 21.98, the current P/B ratio is about -49.41% higher. SoundHound AI Inc (SOUN) has a Forward Free Cash Flow (FCF) yield of approximately -2.47%. Compared to its 3-year average FCF yield of -8.24%, the current FCF yield is approximately -70.02% lower. Relative to its 5-year average FCF yield of -9.89% , the current FCF yield is about -75.02% lower.

11.12

P/B

Median3y

17.53

Median5y

21.98

-2.47

FCF Yield

Median3y

-8.24

Median5y

-9.89

Competitors Valuation Multiple

The average P/S ratio for SOUN's competitors is 7.13, providing a benchmark for relative valuation. SoundHound AI Inc Corp (SOUN) exhibits a P/S ratio of 20.67, which is 189.75% above the industry average. Given its robust revenue growth of 67.57%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of SOUN decreased by 21.84% over the past 1 year. The primary factor behind the change was an decrease in Margin Expansion from -86.68 to -259.87.

The secondary factor is the Revenue Growth, contributed 67.57%to the performance.

Overall, the performance of SOUN in the past 1 year is driven by Margin Expansion. Which is more sustainable.

67.57%

25.09M → 42.05M

Revenue Growth

199.80%

-86.68 → -259.87

Margin Expansion

-289.21%

7.01 → -13.27

P/E Change

-21.84%

14.15 → 11.06

Mkt Cap Growth

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Frequently Asked Questions

Is SoundHound AI Inc (SOUN) currently overvalued or undervalued?

What is SoundHound AI Inc (SOUN) fair value?

SOUN's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of SoundHound AI Inc (SOUN) is between 3.90 to 13.79 according to relative valuation methord.

How does SOUN's valuation metrics compare to the industry average?

What is the current P/B ratio for SoundHound AI Inc (SOUN) as of Jan 08 2026?

As of Jan 08 2026, SoundHound AI Inc (SOUN) has a P/B ratio of 11.12. This indicates that the market values SOUN at 11.12 times its book value.

What is the current FCF Yield for SoundHound AI Inc (SOUN) as of Jan 08 2026?

As of Jan 08 2026, SoundHound AI Inc (SOUN) has a FCF Yield of -2.47%. This means that for every dollar of SoundHound AI Inc’s market capitalization, the company generates -2.47 cents in free cash flow.

What is the current Forward P/E ratio for SoundHound AI Inc (SOUN) as of Jan 08 2026?

As of Jan 08 2026, SoundHound AI Inc (SOUN) has a Forward P/E ratio of -28.19. This means the market is willing to pay $-28.19 for every dollar of SoundHound AI Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for SoundHound AI Inc (SOUN) as of Jan 08 2026?

As of Jan 08 2026, SoundHound AI Inc (SOUN) has a Forward P/S ratio of 20.67. This means the market is valuing SOUN at $20.67 for every dollar of expected revenue over the next 12 months.

SOUN Valuation