2 models fit Sonos Inc. Common Stock and they disagree: 0 of 2 land within 15% of the average.
Two or more of our models back this value.
Discount(i)Silver72
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Dividend discount.
ACCE opinionSonos Inc. Common Stock (SONO)
Fair value (2 models)
$22.64
ACCE price target
$18.50
Rating
Undervalued
Horizon
12 months
Fair value published on 18 Oct 2026, 17:04 CEST; previously $23.37 since 15 Oct 2026, 00:00 CEST.
ACCE price target published on 28 Sept 2026, 00:00 CEST.
Rating published on 18 Oct 2026, 17:04 CEST.
Price used: $17.54 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
22.5% below
+29.0% to fair value
ACCE score
68
out of 100
Analysts
75% buy
4 covering
P/E
39.0x
forward 37.3x
1-year return
+1.0%
Dividend yield
0.00%
Sonos Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Sonos makes wireless speakers, soundbars and headphones that work together across a home through its own software and app. The multi-room ecosystem raises switching costs, since customers add products over time. The driver is new product launches and app stability. Revenue grew 8.8% with a 45.0% gross margin, but the operating margin is just 4.4%, and the forward multiple of 37.3x leaves little room for a miss.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Valuation disconnect vs quality
P/E 38.4 and forward P/E 37.3 sit well above historical tech median despite modest 8.8% revenue growth and 1.7% 5-year CAGR.
moderate
Elevated short interest
20.3% short position is material. Combined with high valuation and modest long-term growth, suggests investor skepticism about sustainability of recent earnings beat.
moderate
Earnings volatility signal
87.5% YoY earnings growth and 33.3% QoQ revenue growth contrast sharply with 1.7% 5-year CAGR. Suggests cyclical strength rather than durable acceleration.
AI research notes
AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-10-11 · prices to Oct 23, 2026
Why it could do well
Recent earnings beat by 180% signals operational momentum and validates the investment thesis for margin expansion.
Free cash flow yield of 5.3% at current valuation offers attractive cash return potential relative to peers.
Three-quarter analyst consensus rates the stock a buy with 7.9% upside to mean price target of $18.63.
Why it could disappoint
Forward P/E of 37.3x is steep for a company growing revenue only 8.8% year over year.
Return on invested capital of negative 12.1% means the business destroys shareholder value on incremental capital deployed.
Five-year revenue growth of 1.7% per year shows the core business is mature and struggling to scale.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 10, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where SONO's valuation models land
Price
$17.54
Model fair value
$22.64
Model range
$11.45 to $35.68
Fair value $22.64
Price $17.54
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
+A plain reason under every score
+Conviction breakdown and growth / value / quality / momentum scores