Think SoundHound AI Is Expensive? These 3 Charts Might Change Your Mind.

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Think SoundHound AI Is Expensive These 3 Charts Might Change.jpeg

Growth expectations this year are rising Soundhound ai (Nasdak: Sun). Last year, analysts expected only 30 % revenue to grow. This year, analysts believe that sales may be close double. Some investors believe that stocks are expensive in sales 36 times. But the charts below draw a different picture.

As a pure bet on artificial intelligence applications (AI), which depends on sound, Soundhound AI should benefit from the high tide in artificial intelligence spending. By 2032, analysts estimate that the AI Voice market in general may be worth more than $ 40 billion. For comparison, Soundhound Ai’s revenues last year amounted to only $ 85 million.

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Of course, companies can be exaggerated even high companies. This may definitely be the case with Soundhound AI given the stock trade at 36.5 times of backward sales. But this year, analysts believe that sales should be about 96 %. Next year estimates are much lower, but sales are still expected to grow by about 20 %. Soundhound Ai is expected to grow by approximately 30 % annually.

Soun PS ratio scheme — PS Soun ratio by ycharts

During the five years to the next ten years, SoundHound AI has an opportunity to develop sales at a pace of two numbers. Sometimes, annual sales growth may reach triple numbers. When looking forward, the first sales ratio does not look 36.5 times expensive. Even just the collaboration in the next 12 months of expected growth, Soundhound AI is traded with only 21.9 times sales. Add a few years from 20 % to 30 % of the upper growth and the evaluation of the Soundhound Ai begins to look somewhat reasonable.

There are a lot of risks to this story. The relatively small research and development budget may hinder the long -term Amnesty International in exchange for better technology competitors. In the short term, volatile expectations of growth can have tremendous effects on the share price. But if you are ready to look for many years on the road and stay patient, then Soundhound AI shares are not expensive as it looks.

Before buying stocks at Soundhound AI, think about this:

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