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SoundHound AISOUN +13.58%72 Debt-to-Equity is 0.01 as of Mar. 2026, which is at its 10-year median of 0.01. GuruFocus rates SOUN with a GF Score™ of 72/100 and a GF Value™ of $12.04 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,243 Software companies, SoundHound AI ranks better than 99.96% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for SoundHound AI's Debt-to-Equity or its related term are showing as below:
SOUN'
s Debt-to-Equity Range Over the Past 10 Years
Min: -3.4 Med: 0.01 Max: 16.51
Current: 0.01
During the past 6 years, the highest Debt-to-Equity Ratio of SoundHound AI was 16.51. The lowest was -3.40. And the median was 0.01.
SOUN's Debt-to-Equity is ranked better than 99.96% of 2243
companies
in the Software industry
Industry Median: 0.2
vs SOUN: 0.01
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
SoundHound AI Debt-to-Equity Related Terms
SoundHound AI Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for SoundHound AI's Debt-to-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SOUN vs GRND, AGYS, ALRM: Debt-to-Equity Comparison
For the Software - Application subindustry, SoundHound AI's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
SoundHound AI Debt-to-Equity vs Software Industry
For the Software industry and Technology sector, SoundHound AI's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where SoundHound AI's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SoundHound AI (SOUN) has a Debt-to-Equity of 0.01 as of Mar. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on SoundHound AI and its competitors. This is near median its historical median of 0.01. According to the industry distribution chart, SoundHound AI ranks #1 out of 2243 companies in the Software industry, placing it in the top 0%.
Is SoundHound AI's Debt-to-Equity too high?
SoundHound AI's current Debt-to-Equity of 0.01 is near median its 10-year median of 0.01. The Software industry median Debt-to-Equity is 0.20. SoundHound AI's value of 0.01 is 95% below this industry median. Based on the distribution chart, SoundHound AI ranks #1 out of 2243 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, SoundHound AI has a GF Score™ of 72/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does SoundHound AI's Debt-to-Equity compare to GRND and AGYS?
According to the Software industry distribution chart, SoundHound AI ranks #1 out of 2243 companies for Debt-to-Equity. This places SoundHound AI in the top 0% of its industry — outperforming the majority of peers. The industry median Debt-to-Equity is 0.20. SoundHound AI's value of 0.01 is 95% below this benchmark. While the company's 10-year median is 0.01 vs. the industry median of 0.20, SoundHound AI has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Software company?
The median Debt-to-Equity among Software companies is 0.20, based on 2,243 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SoundHound AI's current Debt-to-Equity of 0.01 is 95% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on SoundHound AI and its competitors. For the Software industry, the median Debt-to-Equity is 0.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SoundHound AI's current Debt-to-Equity is 0.01, which is near median its own 10-year median of 0.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SoundHound AI stock overvalued right now?
Based on GuruFocus' analysis, SoundHound AI (SOUN) is currently considered Significantly Undervalued. The stock's GF Value™ is $12.04, compared to a current price of $8.02 — trading 33.4% below its estimated fair value. The current Debt-to-Equity is 0.01, which is near median its 10-year median of 0.01 and 95% below the Software industry median of 0.20. SoundHound AI's overall GF Score™ is 72/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For SoundHound AI (SOUN), the current Debt-to-Equity is 0.01 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is SoundHound AI (SOUN) Overvalued in 2026?
Based on GuruFocus' analysis, SoundHound AI stock appears to be undervalued.
The current stock price of $8.02 is trading 33.4% below its estimated GF Value™ of $12.04.
GuruFocus considers SoundHound AI to be Significantly Undervalued.
Key valuation signals for SOUN:
Debt-to-Equity: 0.01 (near median its 10-year median of 0.01)
GF Value™: $12.04 vs. price of $8.02 (33.4% below fair value)
Industry Position: 95% below the Software median (#1 of 2243)
No single metric tells the full story. See the SOUN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SoundHound AI Inc is an innovator of conversational intelligence, offering an independent Voice AI platform that enables businesses across industries to deliver high-quality conversational experiences to customers. The company's voice AI delivers speed and accuracy in numerous languages to product creators and service providers across retail, financial services, healthcare, automotive, smart devices, and restaurants via groundbreaking AI-driven products like Smart Answering, Smart Ordering, Dynamic Drive-Thru, and Amelia AI Agents.
72GF Score
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