Latest Ratios: P/E Ratio -52.4x · EV/EBITDA 15.7x · ROE -15.6%. (2016–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.9B | $1.8B | $1.5B | $1.6B | $1.9B | $4.5B | $1.7B | $1.4B | $1.7B | — | — |
| Enterprise Value | $1.8B | $1.7B | $1.4B | $1.5B | $1.7B | $3.9B | $1.4B | $1.1B | $1.5B | — | — |
| P/E Ratio → | -52.44 | — | — | — | 28.37 | 28.55 | — | — | — | — | — |
| P/S Ratio | 1.30 | 1.28 | 0.99 | 1.00 | 1.09 | 2.64 | 1.28 | 1.10 | 1.48 | — | — |
| P/B Ratio | 5.58 | 5.20 | 3.49 | 3.18 | 3.42 | 7.95 | 5.71 | 4.95 | 8.10 | — | — |
| P/FCF | 15.51 | 17.08 | 11.12 | 32.89 | — | 21.79 | 13.20 | 14.29 | — | — | — |
| P/OCF | 14.18 | 13.50 | 7.88 | 16.42 | — | 17.87 | 10.51 | 11.54 | 55.22 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.20 | 0.92 | 0.90 | 0.96 | 2.29 | 1.04 | 0.86 | 1.33 | — | — |
| EV / EBITDA | 15.67 | 146.16 | 321.22 | 52.23 | 13.09 | 20.82 | 150.23 | 28.71 | 49.43 | — | — |
| EV / EBIT | — | — | — | 289.55 | 24.19 | 24.96 | — | 190.61 | — | — | — |
| EV / FCF | — | 16.01 | 10.33 | 29.62 | — | 18.93 | 10.71 | 11.15 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 43.7% | 43.7% | 45.4% | 43.3% | 45.4% | 47.2% | 43.1% | 41.8% | 43.0% | 45.9% | 44.8% |
| Operating Margin | -3.5% | -3.5% | -3.2% | -1.2% | 5.1% | 9.0% | -2.1% | 0.1% | -0.8% | -1.6% | -3.4% |
| Net Profit Margin | -4.2% | -4.2% | -2.5% | -0.6% | 3.8% | 9.2% | -1.5% | -0.4% | -1.4% | -1.4% | -4.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -15.6% | -15.6% | -8.1% | -1.9% | 11.9% | 36.6% | -7.0% | -1.9% | -15.0% | -52655.6% | — |
| ROA | -7.0% | -7.0% | -4.0% | -0.9% | 5.8% | 16.2% | -2.5% | -0.7% | -3.2% | -4.2% | -13.7% |
| ROIC | -13.4% | -13.4% | -10.6% | -4.6% | 45.5% | — | — | 80.5% | -24.5% | — | — |
| ROCE | -9.9% | -9.9% | -8.0% | -3.2% | 13.6% | 28.5% | -7.0% | 0.4% | -3.8% | -10.3% | -24.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.17 | 0.17 | 0.15 | 0.11 | 0.06 | 0.08 | 0.29 | 0.12 | 0.19 | 1466.67 | — |
| Debt / EBITDA | 5.03 | 5.03 | 14.81 | 1.97 | 0.28 | 0.24 | 9.38 | 0.88 | 1.30 | 2.04 | 7.10 |
| Net Debt / Equity | — | -0.32 | -0.25 | -0.32 | -0.43 | -1.05 | -1.08 | -1.09 | -0.87 | -3370.19 | — |
| Net Debt / EBITDA | -9.71 | -9.71 | -24.38 | -5.77 | -1.86 | -3.15 | -34.91 | -8.07 | -5.94 | -4.69 | -14.61 |
| Debt / FCF | — | -1.06 | -0.78 | -3.27 | — | -2.87 | -2.49 | -3.14 | — | -2.99 | — |
| Interest Coverage | -107.60 | -107.60 | -60.57 | 6.99 | 125.51 | 266.08 | -12.51 | 2.28 | -2.06 | -2.88 | -13.29 |
Net cash position: cash ($175M) exceeds total debt ($60M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.43 | 1.43 | 1.51 | 1.86 | 1.62 | 2.01 | 1.68 | 1.69 | 1.68 | 1.35 | 1.21 |
| Quick Ratio | 0.94 | 0.94 | 0.87 | 0.88 | 0.77 | 1.62 | 1.22 | 1.14 | 1.03 | 0.84 | 0.86 |
| Cash Ratio | 0.65 | 0.65 | 0.60 | 0.62 | 0.51 | 1.34 | 1.04 | 0.84 | 0.75 | 0.58 | 0.49 |
| Asset Turnover | — | 1.75 | 1.66 | 1.65 | 1.47 | 1.51 | 1.63 | 1.66 | 1.94 | 2.48 | 3.23 |
| Inventory Turnover | 4.75 | 4.75 | 3.58 | 2.71 | 2.10 | 4.90 | 4.17 | 3.34 | 3.35 | 4.71 | 9.30 |
| Days Sales Outstanding | — | 16.65 | 10.70 | 14.90 | 21.08 | 21.60 | 15.12 | 29.74 | 23.50 | 17.42 | 18.35 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | 3.5% | 3.5% | — | — | — | — | — |
| FCF Yield | 6.4% | 5.9% | 9.0% | 3.0% | — | 4.6% | 7.6% | 7.0% | — | — | — |
| Buyback Yield | 4.2% | 4.4% | 10.3% | 7.9% | 9.9% | 2.2% | 3.6% | 0.2% | 0.1% | — | — |
| Total Shareholder Yield | 4.2% | 4.4% | 10.3% | 7.9% | 9.9% | 2.2% | 3.6% | 0.2% | 0.1% | — | — |
| Shares Outstanding | — | $121M | $123M | $128M | $138M | $140M | $110M | $104M | $105M | $106M | $106M |
Includes 30+ ratios · 10 years · Updated daily
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10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying SONO stock.
Sonos, Inc.'s current P/E ratio is -52.4x. The historical average is 28.5x.
Sonos, Inc.'s current EV/EBITDA is 15.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 32.9x.
Sonos, Inc.'s return on equity (ROE) is -15.6%. The historical average is -0.1%.
Based on historical data, Sonos, Inc. is trading at a P/E of -52.4x. Compare with industry peers and growth rates for a complete picture.
Sonos, Inc. has 43.7% gross margin and -3.5% operating margin.
Sonos, Inc.'s Debt/EBITDA ratio is 5.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
App redesign brand damage
Metrics are mathematically derived from official filings.
Margin Recovery Amidst Net Losses
Gross margin hit a ten-quarter high of 50.4% in 2026Q3, yet net margin remained deeply negative at -17.3%, according to recent financial statements, highlighting a disconnect between operational and bottom-line profitability.
The 700 basis point gross margin expansion from the prior year quarter suggests favorable product mix and pricing power, likely aided by the Sonos Ace launch. However, the net loss of $64.9M despite positive operating income of $24.9M implies significant non-operating charges, possibly related to restructuring or impairment, which investors should monitor for recurrence. The operating margin swing from -23.6% in 2025Q2 to +6.6% in 2026Q3 indicates strong operating leverage, but the sustainability of this recovery is uncertain given the absence of formal guidance.
ROIC Volatility Masks Underlying Progress
ROIC swung from -21.4% in 2024Q2 to +35.0% in 2026Q1, then fell to 7.6% in 2026Q3, based on reported figures, reflecting extreme quarterly volatility that complicates assessment of true capital efficiency.
The ten-quarter ROIC series shows no clear trend, with positive readings only in seasonally strong quarters (Q1 and Q3). The 2026Q3 ROIC of 7.6% is below the cost of capital, suggesting that while the company is generating returns, they are not yet consistently exceeding investor expectations. The improvement from -10.3% in 2025Q4 to +7.6% in 2026Q3 indicates a potential inflection, but the reliance on seasonal spikes warrants caution. Investors should focus on annualized ROIC to smooth out the pronounced quarterly seasonality.
Working Capital Efficiency Improves
Cash conversion cycle compressed to 20 days in 2026Q3 from 45 days in 2024Q2, as DSO fell to 26 days and DPO rose to 84 days, according to the latest ratio data, indicating improved working capital management.
The reduction in DSO from 31 days in 2024Q4 to 26 days in 2026Q3 suggests more efficient receivables collection, while the increase in DPO from 92 to 84 days (though slightly down from 106 in 2026Q2) indicates continued leverage over suppliers. However, DIO remains elevated at 78 days, reflecting the hardware-heavy inventory model and potential risk of obsolescence, especially given the recent app-related demand softness. The overall CCC improvement is a positive sign, but inventory levels warrant monitoring for write-down risk.
Minimal Debt Provides Strategic Flexibility
Debt-to-equity stood at 0.12 in 2026Q3, with interest coverage of 265.6x, based on reported balance sheet data, indicating a fortress-like balance sheet that supports ongoing turnaround investments.
Total debt of $50.2M is modest relative to cash of $206.9M, and the D/EBITDA ratio of 1.39 in 2026Q3 is manageable. The negative interest coverage in several quarters (e.g., -298.3x in 2026Q2) reflects operating losses, but the minimal debt load means interest expense is not a significant burden. This low leverage provides ample headroom for management to navigate the current turnaround without refinancing risk, though the negative retained earnings (-$17.3M) indicate that equity is still supported by external capital.
Liquidity Buffer Strengthens
Current ratio improved to 1.61 in 2026Q3 from 1.43 in 2025Q4, with quick ratio at 1.18, according to recent filings, suggesting adequate short-term solvency despite inventory-heavy operations.
The quick ratio above 1.0 indicates that liquid assets cover current liabilities even without inventory, which is reassuring given the high DIO. Cash of $206.9M covers total debt over four times, providing a substantial cushion against demand shocks. However, the reliance on seasonal working capital swings (as seen in the volatile CCC) means liquidity can tighten in off-peak quarters, as evidenced by the 2025Q4 quick ratio of 0.94. Overall, the balance sheet appears well-positioned to weather near-term uncertainties.
Misapplied P/E Obscures Turnaround Value
The trailing P/E of -31.2 is meaningless given negative earnings, while forward P/E of 24.9 may overstate value if the recovery stalls, based on current multiples, suggesting EV/EBITDA or P/FCF are more appropriate.
The most commonly misapplied ratio for Sonos is the P/E multiple, as the company's GAAP net losses (cumulative -$280M over ten quarters) render trailing P/E uninformative. Even forward P/E relies on analyst estimates that may not capture the volatility of hardware sales and the impact of non-operating charges. Instead, investors should focus on EV/EBITDA (149.2x trailing, 25.1x forward) or P/FCF (17.4x), which better reflect the cash-generative potential of the business. The high EV/EBITDA multiple suggests the market is pricing in a significant recovery, but the recent FCF margin of 10.7% and positive operating cash flow indicate that cash-based metrics provide a clearer picture of value.