Is On Holding AG overvalued or undervalued?

As of 13 May 2025, the valuation grade for On Holding AG has moved from expensive to very expensive. This indicates that the company is currently overvalued. Key ratios supporting this assessment include a P/E ratio of 81, a Price to Book Value of 11.59, and an EV to EBITDA of 44.77, all of which significantly exceed industry norms.
In comparison with peers, On Holding AG's P/E ratio of 74.98 is markedly higher than Ralph Lauren Corp.'s fair valuation P/E of 45.59 and Skechers U.S.A., Inc.'s expensive P/E of 13.08. The PEG ratio for On Holding AG stands at 1.39, which further suggests overvaluation when juxtaposed with its peers. Despite a strong return of 33.61% over the past year compared to the S&P 500's 10.26%, the current valuation metrics indicate that On Holding AG is not a compelling investment at this price point.