On August 10, 2026, On Holding AG ONON shares rose 3.3% today, trading at $38.78. The stock has seen a 52-week range between $31.41 and $52.20.
- GF Value™ verdict: Current price is $38.78, which is 38.6% below the GF Value™ of $63.14.
- GF Score™ is 86/100, indicating a strong overall performance.
- Notable signal: Insiders have bought $6.6M worth of shares while only selling $0.1M in the last three months.
Is ONON Overvalued or Undervalued?
With a current price of $38.78 and a GF Value™ estimate of $63.14, On Holding AG appears to be significantly undervalued, presenting a potential opportunity for investors. This 38.6% margin of safety suggests that the stock price has not yet fully reflected the company's intrinsic value. GF Value™ is GuruFocus’s proprietary estimate of a stock's intrinsic value, derived from an analysis of historical trading multiples, past growth, and future performance projections.
Investing in undervalued stocks can often provide a buffer against market volatility as the market corrects itself over time. However, it is important to consider potential risks, including market fluctuations and business-specific challenges that could affect future performance. Nonetheless, the current valuation suggests that there is considerable upside potential if market perceptions align with the intrinsic value assessment.
How Does ONON's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 40.3x | 97.3x |
| Forward P/E | 22.2x | N/A |
The current P/E ratio of 40.3x is significantly below its 5-year median of 97.3x, indicating that the stock is trading at a much lower valuation compared to its historical performance. This analysis supports the GF Value™ verdict of being undervalued, suggesting that the current price does not accurately reflect the company's earning potential based on historical standards.
What Does ONON's GF Score™ Tell Us?
GF Score™ is a composite score that evaluates a stock's overall quality based on various factors including financial strength, profitability, growth, valuation, and momentum. On Holding AG's GF Score™ of 86/100 indicates that it is a strong investment candidate with notable strengths in certain areas.
| Metric | Rating |
|---|---|
| GF Score™ | 86 |
| Financial Strength | 8/10 |
| Profitability | 7/10 |
| Growth | 10/10 |
| Valuation | 4/10 |
| Momentum | 5/10 |
The strongest area for ONON is its growth rank of 10/10, indicating robust growth potential. However, the valuation rank of 4/10 suggests that while the stock is undervalued, it is not without its risks. The financial strength rating of 8/10 further reinforces the company's solid foundation, making it an interesting prospect given the current market conditions.
What Are Gurus and Insiders Doing with ONON?
Currently, 7 gurus hold positions in On Holding AG, with 5 adding to their stakes and 3 trimming their positions in recent quarters. This suggests a generally positive sentiment among knowledgeable investors, which can be a strong indicator of future performance.
Moreover, insider activity is notably positive, with insiders buying $6.6 million worth of shares compared to only $0.1 million in sales over the last three months. This pattern of buying suggests that those within the company have confidence in its future performance and are aligning their interests with those of investors.
What This Means for Investors
In conclusion, On Holding AG ONON is currently undervalued based on its GF Value™ estimate, which indicates a significant opportunity for potential growth. The combination of strong insider buying and positive guru sentiment reinforces the attractiveness of the stock as a potentially undervalued opportunity in the current market landscape. For more detailed insights and analysis, visit the On Holding AG (ONON) stock page.
Frequently Asked Questions
What is ONON's GF Score™?
ONON's GF Score™ is 86/100, indicating a strong overall performance and suggesting it is a solid investment candidate.
Is ONON overvalued or undervalued?
ONON is undervalued, with a current price that is 38.6% below the GF Value™ estimate of $63.14.
What is ONON's P/E ratio?
ONON's P/E ratio is 40.3x, which is significantly below its 5-year median of 97.3x, indicating that it is trading at a lower valuation compared to its historical performance.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
