Is On Holding AG overvalued or undervalued?

As of 7 July 2025, the valuation grade for On Holding AG has moved from fair to very expensive. The company appears to be overvalued based on its current metrics, including a P/E ratio of 81, a Price to Book Value of 11.59, and an EV to EBITDA ratio of 44.77. In comparison to peers, Ralph Lauren Corp. has a more attractive P/E ratio of 48.61, while Skechers U.S.A., Inc. stands out with a very low P/E of 12.84, indicating that On Holding AG's valuation is significantly higher than its competitors.
Additionally, On Holding AG's recent stock performance has been underwhelming, with a year-to-date return of -17.86%, contrasting sharply with the S&P 500's gain of 12.22% over the same period. This further reinforces the notion that the stock is overvalued relative to both its industry peers and broader market performance.