Sonos, Inc.

SONO

TechnologyConsumer ElectronicsNASDAQ

$14.89

Market Cap: $1.80B

Sonos, Inc. (SONO) Valuation Summary

Updated May 11, 2026 17:52

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$2.12 – $21.10	$6.45	-56.7%
Revenue DCF 10Y	$0.27 – $17.88	$5.73	-61.5%
▸ Trading Multiples
EV/Revenue	$17.25 – $63.71	$22.08	+48.3%

Valuation History

DCF Analysis

Sonos, Inc. (SONO) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$5.73

Market Price

$14.89

Upside / Downside

-61.5%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -3.5% to a target of 10.2% over 5 years, discounted at a WACC of 8.7%, Sonos, Inc. (SONO) has an intrinsic value of $5.73 per share (range: $0.27 – $17.88).

Key Assumptions

Current Operating Margin

-3.5%

Target Operating Margin

10.2%

WACC

8.7%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

2.8%

Target CapEx/Rev

6.0%

D&A/Revenue

3.0%

Tax Rate

40.0%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	1,494	3.5%	-0.8%	-11	-11	45	(47)	65	-78	-75
2027	1,592	6.6%	2.0%	32	19	47	(55)	8	4	4
2028	1,717	7.9%	4.8%	82	49	51	(64)	10	26	21
2029	1,645	-4.3%	7.5%	123	74	49	(67)	-6	62	46
2030	1,575	-4.3%	10.2%	161	97	47	(69)	-5	80	55
2031	1,527	-3.0%	10.2%	156	94	45	(72)	-4	71	45
2032	1,499	-1.8%	10.2%	154	92	45	(76)	-2	63	37
2033	1,490	-0.6%	10.2%	153	92	44	(80)	-1	57	30
2034	1,498	0.6%	10.2%	153	92	45	(85)	1	51	25
2035	1,525	1.8%	10.2%	156	94	45	(92)	2	46	21

Enterprise Value Bridge

Sum of PV(FCFF)208

Terminal Value (Gordon Growth at 3.0%)818

PV of Terminal Value369

Enterprise Value577

(–) Net Debt-115

Equity Value692

(÷) Shares Outstanding121

Fair Value per Share$5.73

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.2%	7.2%	10.2%	13.2%	16.2%
6.7%	$0	$4	$9	$13	$18
7.7%	$0	$3	$7	$11	$14
8.7%	$0	$3	$6	$9	$12
9.7%	$0	$2	$5	$8	$10
10.7%	$0	$2	$4	$7	$9

Current price: $14.89. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 7.9% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Sonos, Inc. (SONO) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$6.45

Market Price

$14.89

Upside / Downside

-56.7%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -3.5% to a target of 10.2% over 5 years, discounted at a WACC of 8.7%, Sonos, Inc. (SONO) has an intrinsic value of $6.45 per share (range: $2.12 – $21.10).

Key Assumptions

Current Operating Margin

-3.5%

Target Operating Margin

10.2%

WACC

8.7%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

2.8%

Target CapEx/Rev

6.0%

D&A/Revenue

3.0%

Tax Rate

40.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	1,494	3.5%	-0.8%	-11	-11	45	(51)	65	-83	-79
2027	1,592	6.6%	2.0%	32	19	47	(65)	8	-6	-5
2028	1,717	7.9%	4.8%	82	49	51	(81)	10	9	7
2029	1,645	-4.3%	7.5%	123	74	49	(88)	-6	41	30
2030	1,575	-4.3%	10.2%	161	97	47	(94)	-5	55	38

Enterprise Value Bridge

Sum of PV(FCFF)-10

Terminal Value (Gordon Growth at 3.0%)982

PV of Terminal Value674

Enterprise Value664

(–) Net Debt-115

Equity Value779

(÷) Shares Outstanding121

Fair Value per Share$6.45

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.2%	7.2%	10.2%	13.2%	16.2%
6.7%	$-0	$5	$10	$16	$21
7.7%	$-0	$4	$8	$12	$16
8.7%	$-0	$3	$6	$10	$13
9.7%	$-0	$2	$5	$8	$11
10.7%	$-0	$2	$5	$7	$10

Current price: $14.89. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 7.9% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$22.08

Market Price

$14.89

Upside / Downside

+48.3%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Sonos, Inc. (SONO) has a fair value of $22.08 based on 10 comparable companies in the Consumer Electronics industry.

EV/Revenue Valuation — Consumer Electronics

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Sonos, Inc.SONO	1,798	1.2x	1.1x
Applied Optoelectronics, Inc.AAOI	11,758	25.7x	47.0x
Vishay Intertechnology, Inc.VSH	4,436	1.7x	1.6x
Bel Fuse Inc.BELFB	3,773	5.9x	6.1x
Knowles CorporationKN	3,019	5.3x	4.1x
Teradata CorporationTDC	2,801	1.7x	1.6x
Alkami Technology, Inc.ALKT	1,923	5.0x	6.6x
Payoneer Global Inc.PAYO	1,779	1.4x	1.5x
Marqeta, Inc.MQ	1,768	1.3x	1.1x
Pagaya Technologies Ltd.PGY	1,279	1.5x	1.9x
Daqo New Energy Corp.DQ	1,261	0.4x	0.3x
Industry Median		1.7x	1.8x
(*) Revenue		1,443	1,512
= Enterprise Value		2,442	2,660
(-) Net Debt		-115	-115
Equity Value		2,557	2,775
(/) Outstanding shares		121	121
Fair Price		$21	$23

Selected Fair Value (avg of trailing + forward)

$22.08

+48.3%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$2.12 – $21.10

$6.45

-56.7%

Revenue DCF 10Y

$0.27 – $17.88

$5.73

-61.5%

▸ Trading Multiples

EV/Revenue

$17.25 – $63.71

$22.08

+48.3%

DCF Analysis

Sonos, Inc. (SONO) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$5.73

Market Price

$14.89

Upside / Downside

-61.5%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-3.5%

Target Operating Margin

10.2%

WACC

8.7%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

2.8%

Target CapEx/Rev

6.0%

D&A/Revenue

3.0%

Tax Rate

40.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	1,494	3.5%	-0.8%	-11	-11	45	(47)	65	-78	-75
2027	1,592	6.6%	2.0%	32	19	47	(55)	8	4	4
2028	1,717	7.9%	4.8%	82	49	51	(64)	10	26	21
2029	1,645	-4.3%	7.5%	123	74	49	(67)	-6	62	46
2030	1,575	-4.3%	10.2%	161	97	47	(69)	-5	80	55
2031	1,527	-3.0%	10.2%	156	94	45	(72)	-4	71	45
2032	1,499	-1.8%	10.2%	154	92	45	(76)	-2	63	37
2033	1,490	-0.6%	10.2%	153	92	44	(80)	-1	57	30
2034	1,498	0.6%	10.2%	153	92	45	(85)	1	51	25
2035	1,525	1.8%	10.2%	156	94	45	(92)	2	46	21

Enterprise Value Bridge

Sum of PV(FCFF)208

Terminal Value (Gordon Growth at 3.0%)818

PV of Terminal Value369

Enterprise Value577

(–) Net Debt-115

Equity Value692

(÷) Shares Outstanding121

Fair Value per Share$5.73

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.2%	7.2%	10.2%	13.2%	16.2%
6.7%	$0	$4	$9	$13	$18
7.7%	$0	$3	$7	$11	$14
8.7%	$0	$3	$6	$9	$12
9.7%	$0	$2	$5	$8	$10
10.7%	$0	$2	$4	$7	$9

Current price: $14.89. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 7.9% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$22.08

Market Price

$14.89

Upside / Downside

+48.3%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Sonos, Inc. (SONO) has a fair value of $22.08 based on 10 comparable companies in the Consumer Electronics industry.

EV/Revenue Valuation — Consumer Electronics

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Sonos, Inc.SONO	1,798	1.2x	1.1x
Applied Optoelectronics, Inc.AAOI	11,758	25.7x	47.0x
Vishay Intertechnology, Inc.VSH	4,436	1.7x	1.6x
Bel Fuse Inc.BELFB	3,773	5.9x	6.1x
Knowles CorporationKN	3,019	5.3x	4.1x
Teradata CorporationTDC	2,801	1.7x	1.6x
Alkami Technology, Inc.ALKT	1,923	5.0x	6.6x
Payoneer Global Inc.PAYO	1,779	1.4x	1.5x
Marqeta, Inc.MQ	1,768	1.3x	1.1x
Pagaya Technologies Ltd.PGY	1,279	1.5x	1.9x
Daqo New Energy Corp.DQ	1,261	0.4x	0.3x
Industry Median		1.7x	1.8x
(*) Revenue		1,443	1,512
= Enterprise Value		2,442	2,660
(-) Net Debt		-115	-115
Equity Value		2,557	2,775
(/) Outstanding shares		121	121
Fair Price		$21	$23

Selected Fair Value (avg of trailing + forward)

$22.08

+48.3%