SONY Valuation

Sony Group Corp

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27.150

+1.12(4.303%)1D

Overview
Forecast
Valuation
Earnings

SONY Relative Valuation

SONY's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, SONY is overvalued; if below, it's undervalued.

Historical Valuation

Sony Group Corp (SONY) is now in the Overvalued zone, suggesting that its current forward PE ratio of 22.07 is considered Overvalued compared with the five-year average of 17.17. The fair price of Sony Group Corp (SONY) is between 16.07 to 25.30 according to relative valuation methord. Compared to the current price of 26.03 USD , Sony Group Corp is Overvalued By 2.87%.

Relative Value

Fair Zone

16.07-25.30

Current Price：26.03

2.87%

Overvalued

22.07

Trailing

Forward

11.47

EV/EBITDA

Sony Group Corp. (SONY) has a current EV/EBITDA of 11.47. The 5-year average EV/EBITDA is 9.56. The thresholds are as follows: Strongly Undervalued below 7.03, Undervalued between 7.03 and 8.30, Fairly Valued between 10.83 and 8.30, Overvalued between 10.83 and 12.09, and Strongly Overvalued above 12.09. The current Forward EV/EBITDA of 11.47 falls within the Overvalued range.

18.42

EV/EBIT

Sony Group Corp. (SONY) has a current EV/EBIT of 18.42. The 5-year average EV/EBIT is 15.53. The thresholds are as follows: Strongly Undervalued below 12.12, Undervalued between 12.12 and 13.83, Fairly Valued between 17.23 and 13.83, Overvalued between 17.23 and 18.94, and Strongly Overvalued above 18.94. The current Forward EV/EBIT of 18.42 falls within the Overvalued range.

1.90

Sony Group Corp. (SONY) has a current PS of 1.90. The 5-year average PS is 1.37. The thresholds are as follows: Strongly Undervalued below 1.00, Undervalued between 1.00 and 1.18, Fairly Valued between 1.56 and 1.18, Overvalued between 1.56 and 1.74, and Strongly Overvalued above 1.74. The current Forward PS of 1.90 falls within the Strongly Overvalued range.

12.01

P/OCF

Sony Group Corp. (SONY) has a current P/OCF of 12.01. The 5-year average P/OCF is 9.97. The thresholds are as follows: Strongly Undervalued below 5.41, Undervalued between 5.41 and 7.69, Fairly Valued between 12.25 and 7.69, Overvalued between 12.25 and 14.53, and Strongly Overvalued above 14.53. The current Forward P/OCF of 12.01 falls within the Historic Trend Line -Fairly Valued range.

18.86

P/FCF

Sony Group Corp. (SONY) has a current P/FCF of 18.86. The 5-year average P/FCF is 17.33. The thresholds are as follows: Strongly Undervalued below -69.36, Undervalued between -69.36 and -26.02, Fairly Valued between 60.68 and -26.02, Overvalued between 60.68 and 104.03, and Strongly Overvalued above 104.03. The current Forward P/FCF of 18.86 falls within the Historic Trend Line -Fairly Valued range.

Sony Group Corp (SONY) has a current Price-to-Book (P/B) ratio of 2.84. Compared to its 3-year average P/B ratio of 2.27 , the current P/B ratio is approximately 25.25% higher. Relative to its 5-year average P/B ratio of 2.27, the current P/B ratio is about 25.36% higher. Sony Group Corp (SONY) has a Forward Free Cash Flow (FCF) yield of approximately 7.24%. Compared to its 3-year average FCF yield of 2.79%, the current FCF yield is approximately 159.61% lower. Relative to its 5-year average FCF yield of 3.86% , the current FCF yield is about 87.40% lower.

2.84

P/B

Median3y

2.27

Median5y

2.27

7.24

FCF Yield

Median3y

2.79

Median5y

3.86

Competitors Valuation Multiple

The average P/S ratio for SONY's competitors is 16.32, providing a benchmark for relative valuation. Sony Group Corp Corp (SONY) exhibits a P/S ratio of 1.90, which is -88.37% above the industry average. Given its robust revenue growth of -6.20%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Dell Technologies Inc

Super Micro Computer Inc

Hewlett Packard Enterprise Co

Zebra Technologies Corp

Performance Decomposition

Market capitalization of SONY increased by 33.41% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 7.83 to 10.03.

The secondary factor is the P/E Change, contributed 11.51%to the performance.

Overall, the performance of SONY in the past 1 year is driven by Margin Expansion. Which is more sustainable.

-6.20%

19.32B → 18.13B

Revenue Growth

28.10%

7.83 → 10.03

Margin Expansion

11.51%

18.42 → 20.54

P/E Change

33.41%