WallStSmart

Ooma Inc (OOMA) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target

Ooma Inc stock (OOMA) is currently trading at $14.23. Ooma Inc PE ratio is 59.04. Ooma Inc PS ratio (Price-to-Sales) is 1.37. Analyst consensus price target for OOMA is $18.36. WallStSmart rates OOMA as Underperform.

  • OOMA PE ratio analysis and historical PE chart
  • OOMA PS ratio (Price-to-Sales) history and trend
  • OOMA intrinsic value — DCF, Graham Number, EPV models
  • OOMA stock price prediction 2025 2026 2027 2028 2029 2030
  • OOMA fair value vs current price
  • OOMA insider transactions and insider buying
  • Is OOMA undervalued or overvalued?
  • Ooma Inc financial analysis — revenue, earnings, cash flow
  • OOMA Piotroski F-Score and Altman Z-Score
  • OOMA analyst price target and Smart Rating
OOMA

Ooma Inc

NYSETECHNOLOGY
$14.23
$0.07 (0.49%)
52W$9.79
$14.83
Target$18.36+29.0%

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IV

OOMA Intrinsic Value Analysis for Value Investors

Benjamin Graham Formula · Ooma Inc (OOMA)

Margin of Safety
-627.6%
Significantly Overvalued
OOMA Fair Value
$1.56
Graham Formula
Current Price
$14.23
$12.67 above fair value
Undervalued
Fair: $1.56
Overvalued
Price $14.23
Graham IV $1.56
Analyst $18.36

OOMA trades 628% above its Graham fair value of $1.56, indicating the stock may be overvalued at current levels.

Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.

WallStSmart

Smart Analysis

Ooma Inc (OOMA) · 9 metrics scored

Smart Score

44
out of 100
Grade: D
Hold
Investment Rating

Category Performance

WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.

Investment Thesis

Strong fundamentals in price/sales, institutional own.. Concerns around return on equity and operating margin. Mixed signals suggest waiting for clearer direction before acting.

Ooma Inc (OOMA) Key Strengths (2)

Avg Score: 9.0/10
Institutional Own.Quality
70.03%10/10

70.03% of shares held by major funds and institutions

Price/SalesValuation
1.378/10

Paying $1.37 for every $1 of annual revenue

Supporting Valuation Data

Forward P/E
10.53
Attractive
Price/Sales (TTM)
1.368
Undervalued
EV/Revenue
1.546
Undervalued
OOMA Target Price
$18.36
48% Upside

Ooma Inc (OOMA) Areas to Watch (7)

Avg Score: 3.9/10
Operating MarginProfitability
2.82%1/10

Near-zero operating margins, business under pressure

Profit MarginProfitability
2.36%2/10

Very thin margins, barely profitable

Return on EquityProfitability
7.25%3/10

Low profitability relative to shareholder equity

Price/BookValuation
4.034/10

Premium pricing at 4.0x book value

Market CapQuality
$374M5/10

Small-cap company with higher risk but more growth potential

PEG RatioValuation
1.826/10

Growth is fairly priced, not cheap, not expensive

Revenue GrowthGrowth
14.60%6/10

Solid revenue growth at 14.60% per year

Supporting Valuation Data

P/E Ratio
59.04
Overvalued
Trailing P/E
59.04
Overvalued

Ooma Inc (OOMA) Detailed Analysis Report

Overall Assessment

This company scores 44/100 in our Smart Analysis, earning a D grade. Out of 9 metrics analyzed, 2 register as strengths (avg 9.0/10) while 7 fall into concern territory (avg 3.9/10). The category breakdown reveals uneven performance, with some areas requiring attention.

The Bull Case

The strongest argument centers on Institutional Own., Price/Sales. Valuation metrics including Price/Sales (1.37) suggest the stock is attractively priced.

The Bear Case

The primary concerns are Operating Margin, Profit Margin, Return on Equity. Some valuation metrics including PEG Ratio (1.82), Price/Book (4.03) suggest expensive pricing. Growth concerns include Revenue Growth at 14.60%, which may limit upside. Profitability pressure is visible in Return on Equity at 7.25%, Operating Margin at 2.82%, Profit Margin at 2.36%.

Key Dynamics to Monitor

Three factors to monitor going forward. First, whether Operating Margin improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 7.25% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 14.60% needing to reaccelerate.

Risk Considerations

Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.

Bottom Line

Fundamental challenges outweigh strengths at current levels. Operating Margin and Profit Margin are the primary drags. Consider waiting for meaningful improvement before committing capital.

Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.

OOMA Price-to-Sales(PS) Ratio Chart

Historical valuation based on market cap ÷ trailing 12-month revenue

OOMA's Price-to-Sales ratio of 1.37x trades 40% below its historical average of 2.27x (14th percentile). The current valuation is 66% below its historical high of 4x set in Sep 2018, and 71% above its historical low of 0.8x in Apr 2024.

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WallStSmart Analysis Synopsis

Data-driven financial summary for Ooma Inc (OOMA) · TECHNOLOGYSOFTWARE - APPLICATION

The Big Picture

Ooma Inc is a mature, profitable business with steady cash generation. Revenue reached 274M with 15% growth year-over-year. Profit margins are strong at 236.0%, reflecting pricing power and operational efficiency.

Key Findings

Excellent Capital Efficiency

ROE of 725.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.

Strong Profitability

Profit margin of 236.0% and operating margin of 282.0% demonstrate strong pricing power and operational efficiency.

What to Watch Next

Valuation compression risk at a P/E of 59.0x. Any growth miss could trigger a sharp correction.

Sector dynamics: monitor SOFTWARE - APPLICATION industry trends, competitive moves, and regulatory changes that could impact Ooma Inc.

Bottom Line

Ooma Inc is a well-established business delivering consistent profitability with 236.0% margins. The growth phase may be slowing, but strong cash generation and operational efficiency make it suitable for investors seeking reliability over excitement.

This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

Insider Transactions

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About Ooma Inc(OOMA)

Exchange

NYSE

Sector

TECHNOLOGY

Industry

SOFTWARE - APPLICATION

Country

USA

Ooma, Inc. creates connected experiences for businesses and consumers in the United States, Canada, and internationally. The company is headquartered in Sunnyvale, California.