Market Pulse50Neutral

SoundHound AI, Inc.Opportunity Rank #308(SOUN) Intrinsic Value & DCF Analysis (2026)

Sector: Technology

Current Price

$7.47

Last updated: Mar 13, 2026

Price vs Intrinsic Value

$7.47
Price
$0.40
Intrinsic Value
Overvalued by 95%MOS: $0.32

Fundamental Score

6/100
Bearish

Weighted across 6 signals

Narrative Score

62/100
Improving

-1 vs previous

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 $7.47, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a -55.68% 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 $7.47, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a -55.68% long-term growth rate and a 12.16% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$0.40
▼ -94.65% downside
20% margin of safety: $0.32
Years: 10Growth Rate: -55.68%
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Capital Efficiency

Average Quarterly ROIC
-1.56%
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

6/100
BearishWeighted across 6 signals
DCF Discount
94.6% premium to price
0
FCF Yield
-3.8% trailing FCF yield
0
ROIC vs WACC
ROIC -1.6% vs WACC 8.0% (-0.2x)
0
Net Debt / FCF
2.0x net debt to FCF
29
Buybacks
Share count growing
30
FCF CAGR (5Y)
-58.0% 5Y FCF CAGR (adjusted)
0
Pressure from: DCF Discount, FCF Yield.

Narrative Details

62/100
Improving
-1 vs previous · +1 new driversWeighted across 4 recent drivers
Trend: StableConfidence: 97%Updated: 1d ago
Sources: 117 (114 News · 3 Analyst)
Drivers(last 30 days)
106 news sentiment+1.5
2 downgrade headlines-0.5
6 regulatory scrutiny+0.2
3 analyst reiterations0.0

Investment Coach

Updating... 1d ago
AVOIDConfidence: 89%
Thesis
SoundHound AI, Inc. is significantly overvalued with its current price nearly 95% above the estimated fair value, supported by weak fundamentals and negative free cash flow yield. Despite a stable and improving narrative score, the company struggles with returns below its cost of capital and deteriorating cash flow growth.
Key Risk
The primary risk is the company's continued inability to generate returns above its weighted average cost of capital, which could further depress valuation and investor confidence.
Signals To Watch
  • Price moves to at least a mid-teens discount to fair value
  • Sustained improvement in ROIC versus WACC spread
  • Meaningful shifts in the narrative trend and score direction
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR (Adjusted): -55.68%5 Year CAGR (Adjusted): -55.14%

Free Cash Flow (in millions)

TTM2025202420232022202120202019
-$120-$196-$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. develops independent voice artificial intelligence (AI) platform that enables businesses across industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as automatic speech recognition, natural language understanding, wake words, custom domains, text-to-speech, and embedded voice solutions The company is headquartered in Santa Clara, California.