<div id="readability-page-1"><div><p>On Holding (ONON) has been on a tear after its latest earnings, with the stock jumping about 25% over the past month as investors respond to revenue and profit figures that beat expectations.</p> <p>See our latest analysis for On Holding.</p> <p>That surge has shifted the tone after a tougher stretch, with a 30 day share price return of 37.5% contrasting sharply with a negative year to date move and yet a powerful three year total shareholder return of 176%. This suggests momentum is rebuilding as investors refocus on growth.</p> <p>If On Holding’s rebound has you thinking about what else could surprise to the upside, this is a good moment to explore fast growing stocks with high insider ownership.</p> <p>Yet even after a sharp post earnings rally, analysts still see upside and earnings forecasts keep climbing. Is On Holding’s growth run underappreciated here, or is the market already baking in years of expansion?</p> <h2>Most Popular Narrative Narrative: 21.6% Undervalued</h2> <p>With On Holding last closing at $48.14 against a narrative fair value near $61, the story centers on whether rapid growth can sustain that valuation gap.</p> <blockquote> <p><em>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, an operational catalyst likely to further expand profitability as DTC continues its mix shift.</em></p> </blockquote> <p>Read the complete narrative.</p> <p>Want to see how a premium athletic brand earns a tech like valuation? The core narrative focuses on aggressive growth, expanding margins and a bold future earnings multiple. Curious which assumptions need to land perfectly for that price to make sense? Explore the full roadmap behind this fair value estimate.</p> <p><strong>Result: Fair Value of $61.40 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, the narrative could unravel if premium pricing power fades or APAC expansion stumbles, which could squeeze margins and expose how much growth is already priced in.</p> <p>Find out about the key risks to this On Holding narrative.</p> <h2>Another Lens on Valuation</h2> <p>Zooming out from the narrative fair value, the market is asking a steep price for that growth. On Holding trades on a price to earnings ratio of 57.6 times, almost double its peer average of 29.8 times and well above a fair ratio of 28.8 times. This raises clear downside risk if sentiment cools.</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/30b460e6-f1a8-445d-9f78-310d4e375cd1/chart/pe-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/30b460e6-f1a8-445d-9f78-310d4e375cd1/chart/pe-multiple-vs-industry"/><figcaption>NYSE:ONON PE Ratio as at Dec 2025</figcaption></figure><h2> Build Your Own On Holding Narrative</h2> <p>If you see the outlook differently or want to test your own assumptions against the numbers, you can build a full narrative yourself in just a few minutes: Do it your way.</p> <p>A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding On Holding.</p> <h2>Ready for more investment ideas?</h2> <p>Before you move on, lock in your next moves by scanning fresh opportunities on the Simply Wall St Screener so your watchlist never falls behind.</p> <ul> <li>Capitalize on mispriced potential by targeting companies that look attractive on future cash flows using these 908 undervalued stocks based on cash flows.</li> <li>Ride powerful technological shifts by focusing on innovators reshaping automation, analytics, and digital infrastructure through these 26 AI penny stocks.</li> <li>Boost your income strategy by uncovering steady payers with solid yields and resilient track records via these 15 dividend stocks with yields &gt; 3%.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p></div></div>

ONON

<p>On Holding (ONON) stock surged 25% after strong earnings and upgraded growth forecasts. Despite a negative year-to-date move, the stock shows a 37.5% 30-day return and a 176% three-year total shareholder return. Analysts see further upside, with a fair value of $61.40, suggesting it's undervalued at $48.14. Growth in DTC and e-commerce channels boosts margins, but risks include premium pricing power fading and APAC expansion challenges. ONON trades at a high PE ratio of 57.6, indicating potential downside if sentiment cools.</p>

On Holding (ONON): Reassessing Valuation After Strong Earnings Beat and Upgraded Growth Forecasts