Stock analysis · Bull Rankings model

SOUN analysis

SoundHound AI, Inc.Software - Application. Scored on the same transparent model behind the daily rankings.

AI
SOUN
SoundHound AI, Inc. · Software - Application
FCF-$107mF
Rev+80.0%A
D/E0.01A
P/S14.5xC
PEG
22.3Score
$6.14$2.7B
1Y Target$13.14Analyst consensus · 7 analysts
5Y Target$22.99Compound horizon
10Y Target$58.29Long-dated conviction
FCF-$107mTTM
F
FCF is negative (-$107m) — cash-burning phase; acceptable only for pre-profit spec names
Rev+80.0%TTM YoY
A
Revenue +80.0% — hypergrowth, top decile
D/E0.01
A
D/E 0.01 — least levered decile in Technology (≈10th pctile)
P/S14.5x
C
P/S 14.5x — expensive vs Technology peers (≈90th pctile)
PEG
PEG not meaningful — earnings growth negative or data unavailable

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 22.3
Quality0.22
Growth1.00
Value0.04
Entry · Margin of safety
52-week rangeNear 52-week low
72% off the 12-month high
Quality signals · context only
Gross profitability12% · C+gross profit ÷ total assets (Novy-Marx)
ROIC-29.8% · Freturn on invested capital — not score-weighted
Why now
Software - Application · market cap $2.7b. Down 72% from 52-week high of $22.17 — deep drawdown territory. Revenue growing +80% — in hypergrowth territory. 7 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $13.14 (implying +114% upside).
Moat
Software economics — recurring revenue, embedded customer workflows, and high gross margin all compound the moat once a base account is won. Switching costs are the lever.
Risk
Free cash flow is negative (-$107m) — capital raises or debt issuance likely required; dilution / leverage risk. Currently unprofitable (margin -84.2%) — path to GAAP profitability is the core thesis risk. Down 72% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.
Horizon
1-3 yr $13.14 (7-analyst consensus) — catalyst-driven; binary events dominate. 5 yr $22.99 — requires the platform / technology to reach commercial scale. 10 yr $58.29 — return distribution heavily skewed.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Trend
-0.4 over 31 daily scores
From 22.7 (Jun 22) → 22.3 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
325
Position size
$1,996
4.0% of portfolio
Stop price
$4.60
25% below $6.14
$ at risk if stopped
$498.88
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

SoundHound AI, Inc. (SOUN): score, valuation & FAQ

SoundHound AI, Inc. (SOUN) is a Software - Application company that scores 22.3 out of 100 on the Bull Rankings quality-growth model — a weak reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are Rev (A) and D/E (A), while FCF (F) rate weaker.

Is SOUN a good stock to buy?

Bull Rankings scores SOUN 22.3 out of 100 on its quality-growth model, which is a weak reading. That is driven by Rev (A) and D/E (A). A score is a quantitative screen of SoundHound AI, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does SOUN score 22.3 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). SOUN earns its highest marks on Rev (A) and D/E (A), and is held back by FCF (F). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is SOUN overvalued or undervalued?

We don't compute a reliable discounted-cash-flow value for SOUN — typically because it is not yet consistently profitable or free-cash-flow positive — so its valuation rests on growth and price-to-sales rather than on earnings-based intrinsic value. Judge it on the trajectory of the business, not a single multiple.

What are the main risks of investing in SOUN?

Free cash flow is negative (-$107m) — capital raises or debt issuance likely required; dilution / leverage risk. Currently unprofitable (margin -84.2%) — path to GAAP profitability is the core thesis risk. Down 72% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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