Sonos, Inc. (SONO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-86.0%

$2.20

vs $15.73 price

Levered DCF

$5.97

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

4.55

Safe zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	-30×	-39.19×	-160.37×	26.23×	24.82×	-86.11×	-292.16×	-92.06×
P/B	5.2×	3.49×	3.18×	3.17×	6.93×	5.71×	4.95×	7.02×
P/S	1.28×	0.99×	1×	1.01×	2.3×	1.28×	1.1×	1.29×
EV / EBITDA	140.98×	54.21×	27.44×	14.25×	17.49×	77.46×	28.71×	42.63×
Gross margin	43.7%	45.4%	43.3%	45.4%	47.2%	43.1%	41.8%	43.0%
Operating margin	-3.5%	-3.2%	-1.2%	5.1%	9.0%	-2.1%	0.1%	-0.8%
Net margin	-4.2%	-2.5%	-0.6%	3.8%	9.2%	-1.5%	-0.4%	-1.4%
Current ratio	1.43×	1.51×	1.86×	1.62×	2.01×	1.68×	1.69×	1.68×
Debt / equity	0.17×	0.15×	0.11×	0.06×	0.08×	0.29×	0.12×	0.19×
Interest coverage	-108.53×	-108.95×	-28.03×	162.2×	261.76×	-18.31×	0.57×	-1.97×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-17.2%	-8.9%	-2.0%	12.0%	27.9%	-6.8%	-1.7%	-7.5%
Return on invested capital	-10.6%	-8.6%	7.4%	13.2%	23.0%	-6.2%	0.4%	-3.0%
Return on assets	-7.4%	-4.2%	-1.0%	5.7%	13.9%	-2.5%	-0.6%	-2.7%
Free cash flow yield	5.9%	9.0%	3.0%	-4.2%	5.3%	7.6%	7.0%	-0.4%
Earnings yield	-3.3%	-2.5%	-0.6%	3.8%	4.0%	-1.2%	-0.3%	-1.1%
Enterprise value	$1.7B	$1.4B	$1.5B	$1.5B	$3.3B	$1.4B	$1.1B	$1.3B
Net debt / EBITDA	-9.36×	-4.11×	-3.03×	-2.21×	-3.11×	-18×	-8.07×	-6.03×
Cash conversion cycle (days)	11	27	77	66	10	-19	14	22