Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products primarily for use in private residences in the United States and internationally. It offers wireless speakers, home theater speakers, and components. The company offers its products through third-party retail stores and e-commerce retailers, as well as through its sonos.com Website. The company was formerly known as Rincon Audio, Inc. and changed its name to Sonos, Inc. in May 2004. Sonos, Inc. was founded in 2002 and is based in Santa Barbara, California.
SONO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SONO, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Sonos Inc ranked in the 7th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Sonos Inc, consider:
The company's compound free cash flow growth rate over the past 0.99 years comes in at -0.28%; that's greater than only 6.63% of US stocks we're applying DCF forecasting to.
The business' balance sheet reveals debt to be 5% of the company's capital (with equity being the remaining amount). Approximately only 13.76% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
As a business, Sonos Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Technology), this tax rate is higher than merely 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SONO, try AYX, ELSE, EVOP, MRVL, and AVYA.
The Sonos Boost is a device that creates a separate Wi-Fi network for connecting your Sonos speakers. You can plug a Sonos Boost into your Wi-Fi router, and it'll make a new network without traffic from any other devices. If your Sonos devices often skip or play out-of-sync with each other, you might want to consider setting up a Sonos Boost network. Visit Business Insider's Tech Reference library for more stories . The Sonos Boost is an optional accessory that creates a separate, dedicated wireless network for your Sonos speakers . It's a relatively inexpensive network device you can purchase if your Wi-Fi network is too slow or crowded to reliably stream music to your Sonos system. Check out the products mentioned in this article: Sonos Boost (From $99.99 at Amazon) How Sonos Boost wo...
Last week I went over some of the names that I cut loose to raise funds to eventually apply elsewhere, but now it's time to go over some of the other investments I sold, including Sonos (NASDAQ: SONO), Charles Schwab (NYSE: SCHW), and Sleep Number (NASDAQ: SNBR). There's still a lot to like in Sonos. There will be challenges, and last week Sonos announced that it would be eliminating 12% of its workforce as well as shutting down its New York retail store and a half-dozen satellite offices.
Sonos (SONO) breaks higher in early trading after firing off a cost savings initiative earlier in the week and with its app showing recent strength on download tracking sites. Sonos also became a new play toy with the day traders on Robinhood this week. Users holding Sonos jumped more than...
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