ONON is now overvalued and could go down -46%

Based on our analysis, On Holding AG has received an overvalued rating of 1 out of 5 stars from Cashu. Several key financial ratios reveal that, despite some strong performances, the company's valuations are significantly higher than industry averages, suggesting a potential overvaluation in the market. The Price-to-Earnings (PE) Ratio for On Holding AG stands at 63.29, vastly exceeding the sector average of 15.61. A high PE ratio indicates that investors are paying much more for each dollar of earnings compared to peers, which may signal an inflated stock price. Furthermore, the Price-to-Book (PB) Ratio is reported at 10.25, compared to the sector average of 1.97. This ratio reflects the market's valuation of the company's net assets. A substantially higher PB ratio suggests that investors are valuing the company's stock much higher than its book value, which can be a warning sign of overvaluation. While On Holding AG boasts a strong Net Profit Margin of 10.44, significantly higher than the sector's 0.09, this metric alone does not justify the premium valuation. Similarly, the company's Return on Equity (ROE) is 17.39 versus the sector's 1.09, and the Return on Assets (ROA) is 10.18 compared to the sector's -0.10. While these figures indicate effective management and operational efficiency, they are not sufficient to warrant the elevated PE and PB ratios. In summary, the substantial disparity in valuation ratios compared to industry standards suggests that On Holding AG may be overvalued in the current market. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.