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. The company’s financial ratios indicate that it may be trading at a premium compared to industry peers, which raises concerns about its valuation. One key metric is the Price-to-Earnings (P/E) ratio, which stands at an elevated 63.29, significantly higher than the sector average of 15.61. A high P/E ratio suggests that investors are paying much more for each dollar of earnings, which could indicate that the stock is overvalued relative to its actual earnings potential. Additionally, the Price-to-Book (P/B) ratio of 10.25 also exceeds the sector average of 1.97. The P/B ratio measures the market's valuation of a company relative to its book value. A high P/B ratio can signal that the stock is overvalued, particularly if the company's assets do not justify such a premium. While On Holding AG does show strong performance in other areas, such as a net profit margin of 10.44 and a return on equity (ROE) of 17.39, these strengths do not mitigate the concerns raised by its high valuation ratios. The return on assets (ROA) is also impressive at 10.18, but the company's elevated P/E and P/B ratios suggest that the market may be expecting continued high growth, which may not be sustainable in the long term. 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.