On Holding (ONON) Valuation Check After Earnings Beat And Analyst Upgrades

Simply Wall St

Tue, February 24, 2026 at 11:10 AM GMT+9 3 min read

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ONON

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On Holding (NYSE:ONON) is drawing fresh attention after its recent revenue and earnings results came in ahead of market expectations, supported by positive analyst ratings and upward earnings estimate revisions.

See our latest analysis for On Holding.

Despite a 4.0% one-day share price decline to US$47.44, On Holding’s 7-day and 90-day share price returns of 4.8% and 13.6% suggest momentum has been building. This comes as the 1-year total shareholder return of a 2.7% decline contrasts with a very large 3-year total shareholder return of about 7x.

If this kind of earnings-driven interest has your attention, it could be a good moment to see which other names are gaining traction among AI related businesses with 59 profitable AI stocks that aren’t just burning cash.

With earnings surprises, upbeat analyst sentiment and the share price still sitting below the average analyst target, the key question now is simple: is On Holding undervalued or is the market already pricing in its future growth?

Most Popular Narrative: 23.4% Undervalued

With On Holding last closing at $47.44 against a narrative fair value of $61.90, the current price sits well below that framework and puts the focus squarely on whether those long term assumptions hold up.

The acceleration in DTC (Direct-to-Consumer) and e-commerce channels, with DTC reaching new highs (41.1% of sales in Q2 and up 54% YoY), gives On more control over brand, pricing, and customer data while increasing gross and EBITDA margins. This is viewed as an operational catalyst that could further expand profitability as DTC continues its mix shift.

Read the complete narrative.

Curious what kind of revenue run rate, margin profile, and future earnings multiple need to come together to support that price gap, and how ambitious those numbers really are?

Result: Fair Value of $61.90 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, this depends on premium pricing and significant DTC investment not squeezing margins if demand softens or if wholesale growth in key regions slows further.

Find out about the key risks to this On Holding narrative.

Another View: High Growth, High Price Tag

While the narrative fair value points to upside, the current P/E of 54.6x is far higher than both the US Luxury industry at 21.5x and an estimated fair ratio of 26.7x. That gap suggests investors are already paying up heavily, so how much margin for error is really left?

Story Continues  

See what the numbers say about this price — find out in our valuation breakdown.

NYSE:ONON P/E Ratio as at Feb 2026

Next Steps

If this mix of enthusiasm and caution feels familiar, it might be a good time to check the numbers yourself and act promptly on your own view, especially given that our work highlights 3 key rewards.

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_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include ONON.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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