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Stocks SONO DCF valuation

DCF valuation

What is Sonos Inc worth?

With the base-case assumptions below, a discounted cash flow model on Sonos Inc's reported free cash flow gives $15.03 per share. The share price was $18.18 on September 25, 2026, 21% above that value.

Inputs from the filings

Free cash flow, fiscal 2025
$108.2M
Average free cash flow, last 5 years
$85.2M
Cash
$206.9M
balance sheet of June 27, 2026
Debt
$0
not reported, counted as 0
Diluted shares, fiscal 2025
120,753,102
Revenue growth per year, last 5 years
1.7%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear-3.5%-1.0%2.0%10.0%$10.01-45%
Base1.5%2.0%2.5%9.0%$15.03-17%
Bull6.5%5.0%3.0%8.0%$24.80+36%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$18.53$19.59$20.88$22.49$24.56
8.0%$15.93$16.61$17.42$18.39$19.58
9.0%$14.02$14.49$15.03$15.66$16.40
10.0%$12.56$12.90$13.27$13.70$14.20
11.0%$11.41$11.66$11.93$12.24$12.58

Where the presets come from

Base: years 1 to 5 grow at Sonos Inc's revenue growth rate over the last 5 fiscal years (1.7% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Sonos Inc company page