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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Sonos Inc. To summarize, we found that Sonos Inc ranked in the 8th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Sonos Inc, consider:
In the past 0.99 years, Sonos Inc has a compound free cash flow growth rate of -0.28%; that's better than only 4.94% of cash flow producing equities in the Technology sector, where it is classified.
The business' balance sheet suggests that 5% of the company's capital is sourced from debt; this is greater than merely 13.61% of the free cash flow producing stocks we're observing.
Sonos Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -5.74. This coverage rate is greater than that of only 10.53% of stocks we're observing for the purpose of forecasting via discounted cash flows.
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, EVOP, IIVI, SMTX, and APPF.
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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Sonos ([[SONO]] +2.9%) discloses a plan to eliminate 12% of its global workforce, as well as close its New York retail store and six satellite offices. The company says the actions are solely related to the previously disclosed initiative to reduce operating expenses and preserve liquidity in the face of...