Latest Ratios: P/E Ratio -27.6x · EV/EBITDA 134.1x · ROE -15.6%. (2016–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.7B | $1.8B | $1.5B | $1.6B | $1.9B | $4.5B | $1.7B | $1.4B | $1.7B | — | — |
| Enterprise Value | $1.6B | $1.7B | $1.4B | $1.5B | $1.7B | $3.9B | $1.4B | $1.1B | $1.5B | — | — |
| P/E Ratio → | -27.65 | — | — | — | 28.37 | 28.55 | — | — | — | — | — |
| P/S Ratio | 1.18 | 1.28 | 0.99 | 1.00 | 1.09 | 2.64 | 1.28 | 1.10 | 1.48 | — | — |
| P/B Ratio | 4.79 | 5.20 | 3.49 | 3.18 | 3.42 | 7.95 | 5.71 | 4.95 | 8.10 | — | — |
| P/FCF | 15.75 | 17.08 | 11.12 | 32.89 | — | 21.79 | 13.20 | 14.29 | — | — | — |
| P/OCF | 12.45 | 13.50 | 7.88 | 16.42 | — | 17.87 | 10.51 | 11.54 | 55.22 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.20 | 0.92 | 0.90 | 0.96 | 2.29 | 1.04 | 0.86 | 1.33 | — | — |
| EV / EBITDA | 134.08 | 146.16 | 321.22 | 52.23 | 13.09 | 20.82 | 150.23 | 28.71 | 49.43 | — | — |
| EV / EBIT | — | — | — | 289.55 | 24.19 | 24.96 | — | 190.61 | — | — | — |
| EV / FCF | — | 16.01 | 10.33 | 29.62 | — | 18.93 | 10.71 | 11.15 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 43.7% | 43.7% | 45.4% | 43.3% | 45.4% | 47.2% | 43.1% | 41.8% | 43.0% | 45.9% | 44.8% |
| Operating Margin | -3.5% | -3.5% | -3.2% | -1.2% | 5.1% | 9.0% | -2.1% | 0.1% | -0.8% | -1.6% | -3.4% |
| Net Profit Margin | -4.2% | -4.2% | -2.5% | -0.6% | 3.8% | 9.2% | -1.5% | -0.4% | -1.4% | -1.4% | -4.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -15.6% | -15.6% | -8.1% | -1.9% | 11.9% | 36.6% | -7.0% | -1.9% | -15.0% | -52655.6% | — |
| ROA | -7.0% | -7.0% | -4.0% | -0.9% | 5.8% | 16.2% | -2.5% | -0.7% | -3.2% | -4.2% | -13.7% |
| ROIC | -13.4% | -13.4% | -10.6% | -4.6% | 45.5% | — | — | 80.5% | -24.5% | — | — |
| ROCE | -9.9% | -9.9% | -8.0% | -3.2% | 13.6% | 28.5% | -7.0% | 0.4% | -3.8% | -10.3% | -24.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.17 | 0.17 | 0.15 | 0.11 | 0.06 | 0.08 | 0.29 | 0.12 | 0.19 | 1466.67 | — |
| Debt / EBITDA | 5.03 | 5.03 | 14.81 | 1.97 | 0.28 | 0.24 | 9.38 | 0.88 | 1.30 | 2.04 | 7.10 |
| Net Debt / Equity | — | -0.32 | -0.25 | -0.32 | -0.43 | -1.05 | -1.08 | -1.09 | -0.87 | -3370.19 | — |
| Net Debt / EBITDA | -9.71 | -9.71 | -24.38 | -5.77 | -1.86 | -3.15 | -34.91 | -8.07 | -5.94 | -4.69 | -14.61 |
| Debt / FCF | — | -1.06 | -0.78 | -3.27 | — | -2.87 | -2.49 | -3.14 | — | -2.99 | — |
| Interest Coverage | -107.60 | -107.60 | -60.57 | 6.99 | 125.51 | 266.08 | -12.51 | 2.28 | -2.06 | -2.88 | -13.29 |
Net cash position: cash ($175M) exceeds total debt ($60M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.43 | 1.43 | 1.51 | 1.86 | 1.62 | 2.01 | 1.68 | 1.69 | 1.68 | 1.35 | 1.21 |
| Quick Ratio | 0.94 | 0.94 | 0.87 | 0.88 | 0.77 | 1.62 | 1.22 | 1.14 | 1.03 | 0.84 | 0.86 |
| Cash Ratio | 0.65 | 0.65 | 0.60 | 0.62 | 0.51 | 1.34 | 1.04 | 0.84 | 0.75 | 0.58 | 0.49 |
| Asset Turnover | — | 1.75 | 1.66 | 1.65 | 1.47 | 1.51 | 1.63 | 1.66 | 1.94 | 2.48 | 3.23 |
| Inventory Turnover | 4.75 | 4.75 | 3.58 | 2.71 | 2.10 | 4.90 | 4.17 | 3.34 | 3.35 | 4.71 | 9.30 |
| Days Sales Outstanding | — | 16.65 | 10.70 | 14.90 | 21.08 | 21.43 | 15.12 | 29.74 | 23.50 | 17.42 | 18.35 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | 3.5% | 3.5% | — | — | — | — | — |
| FCF Yield | 6.3% | 5.9% | 9.0% | 3.0% | — | 4.6% | 7.6% | 7.0% | — | — | — |
| Buyback Yield | 4.8% | 4.4% | 10.3% | 7.9% | 9.9% | 2.2% | 3.6% | 0.2% | 0.1% | — | — |
| Total Shareholder Yield | 4.8% | 4.4% | 10.3% | 7.9% | 9.9% | 2.2% | 3.6% | 0.2% | 0.1% | — | — |
| Shares Outstanding | — | $121M | $123M | $128M | $138M | $140M | $110M | $104M | $105M | $106M | $106M |
Operational execution and seasonality
According to recent market data, Sonos trades at a forward P/E of 34.79, which appears to price in a significant recovery that may be disconnected from the company's current negative net margin trajectory and the ongoing volatility in its core consumer electronics hardware segment.
The elevated forward multiple suggests investors are banking on a pivot toward higher-margin software or a successful turnaround in hardware demand. However, given the recent -26.61 TTM P/E, the market's optimism seems to ignore the structural challenges in scaling the business profitably.
As reported in financial statements, the company's ROIC has deteriorated from a peak of 35.0% in 2026Q1 to -12.0% in 2026Q2, indicating that recent investments are failing to generate adequate returns and are instead eroding the firm's overall capital compounding potential.
This sharp decline in ROIC highlights the difficulty of maintaining premium returns in a hardware-centric model when operating margins are under pressure. Investors should monitor whether this trend reflects temporary R&D inefficiencies or a more permanent loss of competitive advantage in the audio space.
Based on reported figures, the cash conversion cycle has shown extreme instability, with DIO reaching 83 days in 2026Q2, suggesting that inventory management remains a significant bottleneck for liquidity during periods of slowing consumer demand and product refresh cycles.
The fluctuation in DSO and DIO indicates that Sonos is struggling to balance inventory levels with shifting retail demand. This inefficiency forces the company to tie up capital in unsold goods, which exacerbates the cash flow strain during off-peak quarters.
As disclosed in recent SEC filings, the current ratio has tightened to 1.58, reflecting a narrowing liquidity cushion that may leave the company vulnerable if seasonal holiday demand fails to materialize as expected in the coming fiscal periods.
While the current ratio remains above 1.0, the reliance on inventory to meet short-term obligations is concerning given the recent product-related brand challenges. The company's liquidity position appears adequate for now, but it lacks the robustness required to absorb prolonged operational losses.
Based on the provided figures, analysts frequently misapply standard hardware P/S multiples to Sonos, which obscures the long-term value of its installed user base and the potential for recurring software-driven revenue that is not yet fully reflected in the current valuation.
Focusing solely on hardware unit sales ignores the 'sticky' nature of the ecosystem, which creates high switching costs. A more appropriate metric would be Lifetime Value (LTV) per user or an adjusted EV/EBITDA that accounts for the R&D investment in the software platform.
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Quick answers to the most common questions about buying SONO stock.
Sonos, Inc.'s current P/E ratio is -27.6x. The historical average is 28.5x.
Sonos, Inc.'s current EV/EBITDA is 134.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 32.9x.
Sonos, Inc.'s return on equity (ROE) is -15.6%. The historical average is -0.1%.
Based on historical data, Sonos, Inc. is trading at a P/E of -27.6x. Compare with industry peers and growth rates for a complete picture.
Sonos, Inc. has 43.7% gross margin and -3.5% operating margin.
Sonos, Inc.'s Debt/EBITDA ratio is 5.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.