On Holding (NYSE:ONON) drew fresh attention after reporting second quarter 2026 results with CHF 850.3 million in sales and CHF 105 million in net income, alongside full year guidance targeting net sales growth in the low 20% range.

Despite the stronger second quarter and upbeat full year guidance, On Holding’s recent share price performance has been weak, with the stock down 19.71% on a 30 day share price return and 36.32% year to date, while the 3 year total shareholder return of 5.28% highlights a more modest longer term gain.

If the recent volatility around On Holding has you reassessing growth opportunities, this can be a good moment to scan other fast growing themes such as 76 profitable AI stocks that aren't just burning cash

Bulls point to On Holding’s higher sales, new profitability and upbeat 2026 guidance. Bears focus on a falling share price and execution risk. Which side does the current valuation really support as the next step?

Most Popular Narrative: 43% Undervalued

The most followed narrative currently places On Holding’s fair value at $52.49, well above the last close of $29.90. This frames the recent share price weakness in a very different light.

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.

Want to understand why this narrative still lands above $50 per share despite recent drawdowns? The answer rests on compounded revenue expansion, widening margins, and a future earnings profile that assumes On Holding can support a premium profit multiple well beyond many peers.

Result: Fair Value of $52.49 (UNDERVALUED)

However, On Holding’s reliance on premium pricing and heavy investment in global expansion could pressure margins and revenue if consumer demand slows or regional growth weakens.

Another View on On Holding’s Valuation

The first fair value of $52.49 for On Holding came from future earnings assumptions and analyst projections. A different lens uses the current P/E of 20.2x versus a peer average of 15.2x and a fair ratio of 24.1x, which highlights both premium pricing and potential upside. Which risk matters more to you: overpaying today or missing a possible rerating later?

To see how those P/E gaps and the fair ratio could reshape the picture for On Holding over time, take a closer look at the detailed valuation work behind them with See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

If the mix of optimism and caution around On Holding feels finely balanced, this is the moment to review the data yourself and move quickly to shape your own view. To see what those positives look like in detail, take a closer look at the 3 key rewards

Looking for more investment ideas beyond On Holding?

If On Holding has sharpened your focus on quality growth, do not stop here. Use data driven screeners to surface fresh opportunities that fit your style.

• Target potential mispricings by reviewing companies highlighted in the 50 high quality undervalued stocks.
• Prioritise resilience with stocks identified through the 79 resilient stocks with low risk scores.
• Seek early stage potential with companies featured in the 21 elite penny stocks with strong financials.

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.