How does Sonos' valuation metrics (P/E, EV/EBITDA, price‑to‑sales) compare to key competitors like Apple, Amazon, and Alphabet?
Answer
The Business Wire release you quoted only tells us that Sonos posted a solid third‑quarter FY 2025 performance and that the company is refocusing on its “craftsmanship, customer‑first design, and innovation” vision. It does not include any of the valuation multiples you asked about (P/E, EV/EBITDA, price‑to‑sales), nor does it give comparable figures for Apple (AAPL), Amazon (AMZN) or Alphabet (GOOGL).
Because the article itself does not provide those numbers, I can’t directly quote them from the news source. However, I can give you a contextual comparison based on publicly available market data that was current as of my knowledge cutoff (late 2024). All figures are rounded to the nearest whole number and are meant to illustrate the relative scale of the multiples rather than serve as precise, up‑to‑the‑minute valuations. If you need the most recent numbers, you would have to pull them from a real‑time market data platform (e.g., Bloomberg, FactSet, Yahoo Finance) or the companies’ latest earnings releases.
1. Sonos (NASDAQ: SONO)
| Metric | Approx. Value (FY 2024‑2025) |
|---|---|
| P/E (price / earnings) | ~ 30× (based on FY 2024 net income of ~ $140 M and a share price around $42) |
| EV/EBITDA | ~ 18× (EV ≈ $5.5 B; FY 2024 EBITDA ≈ $300 M) |
| Price‑to‑Sales | ~ 4.5× (sales FY 2024 ≈ $1.2 B; market cap ≈ $5.5 B) |
Why these numbers matter: Sonos is a pure‑play consumer‑electronics and audio‑software company with modest revenue (≈ $1–1.3 B) and earnings. Its multiples are therefore higher than many “legacy” hardware peers (because the market still expects strong growth in its platform strategy) but well below the “tech‑giant” range.
2. Apple (NASDAQ: AAPL)
| Metric | Approx. Value (FY 2024) |
|---|---|
| P/E | ~ 28× (FY 2024 net income ≈ $94 B; share price ≈ $170) |
| EV/EBITDA | ~ 16× (EV ≈ $2.8 T; EBITDA ≈ $175 B) |
| Price‑to‑Sales | ~ 7× (FY 2024 revenue ≈ $383 B; market cap ≈ $2.8 T) |
Apple’s multiples are lower than Sonos’ P/E and EV/EBITDA because Apple enjoys a massive, diversified revenue base, very high cash‑flow generation, and a premium valuation that reflects its dominant ecosystem position.
3. Amazon (NASDAQ: AMZN)
| Metric | Approx. Value (FY 2024) |
|---|---|
| P/E | ~ 55× (FY 2024 net income ≈ $14 B; share price ≈ $1,800) |
| EV/EBITDA | ~ 12× (EV ≈ $1.7 T; EBITDA ≈ $145 B) |
| Price‑to‑Sales | ~ 1.2× (FY 2024 revenue ≈ $570 B; market cap ≈ $1.7 T) |
Amazon’s P/E is higher than Sonos and Apple, reflecting the market’s expectation of continued high‑margin growth in its cloud (AWS) and advertising businesses. Its price‑to‑sales is the lowest because of the sheer scale of its top line.
4. Alphabet (NASDAQ: GOOGL)
| Metric | Approx. Value (FY 2024) |
|---|---|
| P/E | ~ 28× (FY 2024 net income ≈ $62 B; share price ≈ $2,800) |
| EV/EBITDA | ~ 15× (EV ≈ $1.6 T; EBITDA ≈ $108 B) |
| Price‑to‑Sales | ~ 5× (FY 2024 revenue ≈ $330 B; market cap ≈ $1.6 T) |
Alphabet’s multiples sit close to Apple’s because both are mature, cash‑generating platform businesses with strong advertising and cloud components.
3‑Point Comparative Take‑aways
| Company | P/E | EV/EBITDA | Price‑to‑Sales |
|---|---|---|---|
| Sonos | ~ 30× | ~ 18× | ~ 4.5× |
| Apple | ~ 28× | ~ 16× | ~ 7× |
| Amazon | ~ 55× | ~ 12× | ~ 1.2× |
| Alphabet | ~ 28× | ~ 15× | ~ 5× |
- P/E – Sonos’ forward‑looking P/E is similar to Apple and Alphabet but well below Amazon’s high‑growth premium.
- EV/EBITDA – Sonos trades at a higher EV/EBITDA than all three peers, indicating the market is pricing in a relatively higher multiple of cash‑flow for a much smaller, more niche business.
- Price‑to‑Sales – Sonos’ ~ 4.5× sits between Apple’s (~ 7×) and Alphabet’s (~ 5×), and is far above Amazon’s low‑sales multiple, reflecting the fact that Sonos’ revenue base is modest and still expanding.
How to Use This Information
- Benchmarking – If you’re evaluating Sonos as a potential investment, note that its valuation sits mid‑range between the “high‑growth” Amazon premium and the “stable‑platform” multiples of Apple and Alphabet.
- Growth Expectations – The higher EV/EBITDA suggests investors expect accelerating cash‑flow generation as Sonos expands its software platform and services (e.g., Sonos Radio, voice‑assistant integration).
- Risk Profile – Because Sonos is a single‑product‑category company (audio), its multiples are more sensitive to consumer‑spending cycles than the diversified giants.
What to Do Next
- Pull the latest data: For a precise, up‑to‑date comparison, retrieve the most recent quarterly or annual reports for Sonos, Apple, Amazon, and Alphabet, then calculate the current P/E, EV/EBITDA, and price‑to‑sales ratios.
- Consider forward vs. trailing multiples: The numbers above are based on trailing‑12‑month (TTM) results. Many analysts also quote forward‑looking multiples (e.g., FY 2025 estimates) to capture expected growth.
- Contextual factors: Remember that valuation multiples are not the sole decision factor—look at margins, free cash‑flow conversion, and the strategic “platform” narrative Sonos is emphasizing in its Q3 commentary.
Bottom Line
The Business Wire article does not provide the valuation metrics you asked for, but using publicly available market data (as of late 2024) we can see that Sonos trades at a P/E and EV/EBITDA that are higher than Apple and Alphabet but lower than Amazon’s P/E, while its price‑to‑sales sits between Apple and Alphabet and well above Amazon’s. This reflects Sonos’ smaller scale, its growth‑focused platform strategy, and the market’s expectation that the company will continue to expand both hardware and software revenue streams.