SOUN (SoundHound AI) ROCE %: -16.27% (As of Mar. 2026)


SOUN SoundHound AI Inc SOUN
72 GF Score
Price $6.20
GF Value $11.67
Valuation Possible Value Trap
! 4 Warning Signs
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What is SoundHound AI ROCE %?

SoundHound AI SOUN -2.05% 72 ROCE % is -16.27% as of Mar. 2026. GuruFocus rates SOUN with a GF Score™ of 72/100 and a GF Value™ of $11.67 (Possible Value Trap). The stock has 4 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. SoundHound AI's annualized ROCE % for the quarter that ended in Mar. 2026 was -16.27%.

SoundHound AI  (NAS:SOUN) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

SoundHound AI ROCE % Related Terms

SoundHound AI ROCE % Historical Data

* Premium members only.

The historical data trend for SoundHound AI's ROCE % 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.

SoundHound AI ROCE % Chart

SoundHound AI Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial -24,478.20 0.00 -108.13 -113.44 -1.56

SoundHound AI Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 103.37 -55.92 -75.05 27.04 -16.27
SOUN
72GF Score
SoundHound AI Inc SOUN
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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SoundHound AI ROCE % Calculation

SoundHound AI's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=-8.604/( ( (553.953 - 67.742) + (688.173 - 71.739) )/ 2 )
=-8.604/( (486.211+616.434)/ 2 )
=-8.604/551.3225
=-1.56 %

SoundHound AI's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=-96.636/( ( (688.173 - 71.739) + (644.951 - 73.287) )/ 2 )
=-96.636/( ( 616.434 + 571.664 )/ 2 )
=-96.636/594.049
=-16.27 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of -16.27% mean?
SoundHound AI (SOUN) has a ROCE % of -16.27% as of Mar. 2026.
Is SoundHound AI's ROCE % too high?
SoundHound AI's current ROCE % is -16.27%. Overall, SoundHound AI has a GF Score™ of 72/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does SoundHound AI's ROCE % compare to SRAD and BILL?
SoundHound AI's ROCE % of -16.27% can be compared against companies in the Software industry. The industry median ROCE % is 5.27. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Software company?
The median ROCE % among Software companies is 5.27, based on 2,711 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median ROCE % is 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SoundHound AI's current ROCE % is -16.27%. 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 Possible Value Trap. The stock's GF Value™ is $11.67, compared to a current price of $6.20 — trading 46.9% below its estimated fair value. The current ROCE % is -16.27%. SoundHound AI's overall GF Score™ is 72/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For SoundHound AI (SOUN), the current ROCE % is -16.27% 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 $6.20 is trading 46.9% below its estimated GF Value™ of $11.67. GuruFocus considers SoundHound AI to be Possible Value Trap.

Key valuation signals for SOUN:

  • ROCE %: -16.27%
  • GF Value™: $11.67 vs. price of $6.20 (46.9% below fair value)
  • GF Score™: 72/100 with 4 warning signs

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 Business Description

Other Exchanges SOUN:Mexico
Address 5400 Betsy Ross Drive, Santa Clara, CA, USA, 95054
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

Get the complete analysis for SOUN

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$6.20
Price
$11.67
GF Value