Market Pulse44Neutral

SoundHound AI, Inc.Opportunity Rank #316(SOUN) Intrinsic Value & DCF Analysis (2026)

Sector: Technology

Current Price

$6.88

Last updated: Jun 23, 2026

Price vs Intrinsic Value

$6.88
Price
$0.40
Intrinsic Value
Overvalued by 94%MOS: $0.32

Fundamental Score

11/100
Bearish

Weighted across 6 signals

Narrative Score

62/100
Improving

-1 vs previous

Trend Score

15/100
Weak

As of 2026-06-22

The intrinsic value of SoundHound AI, Inc. (SOUN) is estimated at $0.40 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $6.88, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a -50.75% long-term growth rate and a 12.16% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of SoundHound AI, Inc. (SOUN) is estimated at $0.40 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $6.88, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a -50.75% long-term growth rate and a 12.16% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$0.40
▼ -94.19% downside
20% margin of safety: $0.32
Years: 10Growth Rate: -50.75%
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Capital Efficiency

Average Quarterly ROIC
-24.94%
Cost of Capital (estimated)8%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

11/100
BearishWeighted across 6 signals
DCF Discount
94.2% premium to price
0
FCF Yield
-3.4% trailing FCF yield
0
ROIC vs WACC
ROIC -24.9% vs WACC 8.0% (-3.1x)
0
Net Debt / FCF
2.1x net debt to FCF
27
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
-55.7% 5Y FCF CAGR (adjusted)
0
Strengths: Buybacks. Concerns: DCF Discount, FCF Yield.

Narrative Details

62/100
Improving
-1 vs previous · +1 new driversVs 6-Month Baseline:Below Avg (30th pct)Weighted across 6 recent drivers
Trend: StableConfidence: 89%Updated: 4h ago
Sources: 101 (99 News · 2 Analyst)
Drivers(last 30 days)
92 news sentiment+1.2
Regulatory scrutiny+0.1
3 legal risk-0.0
Earnings miss-0.0
Upgrade headlines+0.0
Earnings beat+0.0

Trend Details

15/100
WeakAs of 2026-06-22308 daily bars used
Distance from 52-Week High-67.9%
6M Relative Strength vs SPY-48.3%
Price vs 50 EMA-12.4%
Price vs 21 EMA9 · -8.7%
Price vs 50 EMA7 · -12.4%
21 EMA vs 50 EMA20 · -4.1%
3M RS vs SPY16 · -9.7%
6M RS vs SPY0 · -48.3%
Distance from 52W High0 · -67.9%

Investment Coach

Updating... 12d ago
AVOIDConfidence: 89%
Thesis
SoundHound AI, Inc. is significantly overvalued with its current price nearly 94% above the estimated fair value, supported by weak fundamentals and negative free cash flow yield. The company's returns are trailing its cost of capital, indicating poor capital efficiency and financial health.
Key Risk
The primary risk is the company's sustained negative return on invested capital far below its weighted average cost of capital, which may continue to erode shareholder value.
Signals To Watch
  • Price moving to at least a mid-teens discount to fair value
  • Improvement in ROIC versus WACC spread
  • Meaningful shifts in the narrative trend and fundamental score
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR (Adjusted): -50.75%5 Year CAGR (Adjusted): -51.53%

Free Cash Flow (in millions)

TTM2025202420232022202120202019
-$102-$93-$108-$68-$93-$66-$44-$41

How Intrinziq Estimates Fair Value

Intrinziq estimates SoundHound AI, Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

SoundHound AI, Inc.Technology

SoundHound AI, Inc. (SOUN) creates and provides its own artificial intelligence platform, exclusively focused on voice technology. This technology empowers companies across a wide range of industries to offer sophisticated and engaging conversational experiences to their clientele. Its primary offering, the Houndify platform, furnishes a comprehensive toolkit designed to assist brands in developing tailored voice assistants. These capabilities encompass automatic speech recognition (ASR), natural language understanding (NLU), custom wake words, domain-specific applications, text-to-speech (TTS) synthesis, and embedded voice solutions for integration into various products. The company's operations are centered at its headquarters in Santa Clara, California.