Latest Ratios: P/E Ratio -201.2x · EV/EBITDA 254.9x · ROE -4.3%. (2019–2025 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 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.0B | $4.0B | $6.7B | $486M | $278M | — | — | — |
| Enterprise Value | $2.8B | $3.8B | $6.5B | $481M | $313M | — | — | — |
| P/E Ratio → | -201.16 | — | — | — | — | — | — | — |
| P/S Ratio | 17.83 | 23.93 | 79.29 | 10.60 | 8.95 | — | — | — |
| P/B Ratio | 6.08 | 8.72 | 36.76 | 17.26 | — | — | — | — |
| P/FCF | — | — | — | — | — | — | — | — |
| P/OCF | — | — | — | — | — | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 22.48 | 77.00 | 10.48 | 10.07 | — | — | — |
| EV / EBITDA | 254.91 | 349.77 | — | — | — | — | — | — |
| EV / EBIT | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 42.4% | 42.4% | 48.9% | 75.4% | 69.2% | 68.9% | 55.0% | 41.2% |
| Operating Margin | -13.8% | -13.8% | -403.0% | -149.6% | -339.5% | -308.2% | -507.1% | -841.1% |
| Net Profit Margin | -8.3% | -8.3% | -414.1% | -193.9% | -374.9% | -375.2% | -571.6% | -839.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| ROE | -4.3% | -4.3% | -332.7% | -315.7% | — | — | — | -320.1% |
| ROA | -2.3% | -2.3% | -99.5% | -94.1% | -267.7% | -141.0% | -116.4% | -100.5% |
| ROIC | -16.8% | -16.8% | -4328.2% | -481.3% | — | — | — | -2646.5% |
| ROCE | -4.2% | -4.2% | -111.4% | -108.6% | — | -22604.5% | -160.4% | -149.6% |
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 |
|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.01 | 0.01 | 0.02 | 3.20 | — | — | — | 0.31 |
| Debt / EBITDA | 0.39 | 0.39 | — | — | — | — | — | — |
| Net Debt / Equity | — | -0.53 | -1.06 | -0.18 | — | — | — | -0.91 |
| Net Debt / EBITDA | -22.50 | -22.50 | — | — | — | — | — | — |
| Debt / FCF | — | — | — | — | — | — | — | — |
| Interest Coverage | -12.84 | -12.84 | -28.58 | -4.08 | -15.51 | -8.48 | -31.47 | — |
Net cash position: cash ($248M) exceeds total debt ($4M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Current Ratio | 4.59 | 4.59 | 3.77 | 4.69 | 0.46 | 0.31 | 2.00 | 2.16 |
| Quick Ratio | 4.59 | 4.59 | 3.77 | 4.69 | 0.46 | 0.31 | 2.00 | 2.16 |
| Cash Ratio | 3.46 | 3.46 | 2.93 | 3.93 | 0.24 | 0.25 | 1.78 | 1.82 |
| Asset Turnover | — | 0.25 | 0.15 | 0.30 | 0.82 | 0.43 | 0.20 | 0.12 |
| Inventory Turnover | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 134.49 | 214.64 | 125.96 | 59.62 | 36.40 | 101.45 | 271.81 |
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 |
|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — |
| FCF Yield | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — |
| Shares Outstanding | — | $405M | $338M | $229M | $157M | $200M | $17M | $12M |
Persistent operating cash burn
Based on current market data, SOUN trades at a P/S multiple of 16.42, which significantly exceeds traditional software benchmarks and suggests that investors are pricing in aggressive long-term market share capture rather than near-term profitability or historical earnings performance.
The valuation appears to be heavily predicated on the company's ability to maintain its 99% revenue growth trajectory, as the negative P/E of -185.26 renders traditional earnings-based metrics irrelevant. This premium valuation warrants caution, as any deceleration in contract wins or backlog conversion could lead to a sharp contraction in the current revenue multiple.
As reported in the financial statements, the company's ROIC has fluctuated wildly, reaching a low of -199.8% in 2024Q4, which indicates that the firm is currently destroying shareholder value through intensive R&D and high-cost implementation cycles rather than compounding capital.
The erratic nature of these returns suggests that the company has not yet achieved the operational scale necessary to generate positive returns on its invested capital. Investors should monitor whether the recent shift toward subscription-based revenue can eventually stabilize these returns, as current figures remain well below the cost of capital.
According to the provided quarterly data, the company's asset turnover remains consistently low at approximately 0.07, suggesting that the firm's asset base is not yet generating sufficient revenue to justify its current investment in technology and infrastructure.
The high DSO, which has frequently exceeded 100 days, implies that the company faces significant delays in collecting payments from its large-scale automotive and enterprise clients. This inefficiency in the cash conversion cycle places additional pressure on the company's liquidity, necessitating frequent reliance on external equity financing.
Based on the most recent filings, the company maintains a current ratio of 3.94, which provides a temporary safety net against short-term obligations despite the persistent and substantial cash burn observed across the last ten quarters of operations.
While the liquidity position appears healthy on the surface, it is largely a byproduct of recent equity raises rather than organic cash generation. This reliance on external capital to maintain liquidity suggests that the company remains vulnerable to shifts in market sentiment regarding high-growth, loss-making technology firms.
The most commonly misapplied metric for this business model is the 'Cumulative Bookings Backlog,' which investors often mistake for guaranteed future cash flow despite its susceptibility to volume fluctuations and contract cancellations in the automotive sector.
Analysts should instead focus on the conversion rate of this backlog into realized revenue, as the current metric obscures the inherent uncertainty of long-term royalty agreements. Relying on the raw backlog figure likely leads to an overestimation of the company's revenue durability and a misunderstanding of its true operational risk profile.
Includes 30+ ratios · 7 years · Updated daily
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Quick answers to the most common questions about buying SOUN stock.
SoundHound AI, Inc.'s current P/E ratio is -201.2x. This places it at the 50th percentile of its historical range.
SoundHound AI, Inc.'s current EV/EBITDA is 254.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA.
SoundHound AI, Inc.'s return on equity (ROE) is -4.3%. The historical average is -243.2%.
Based on historical data, SoundHound AI, Inc. is trading at a P/E of -201.2x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
SoundHound AI, Inc. has 42.4% gross margin and -13.8% operating margin.
SoundHound AI, Inc.'s Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.