A Look At On Holding (ONON) Valuation As Founder CEOs And New CFO Prepare To Take Charge

Leadership shake-up and what it could mean for On Holding stock

On Holding (NYSE:ONON) is entering a new leadership chapter, with long-time CEO and former CFO Martin Hoffmann set to step down on May 1, 2026, and co-founders taking operational control.

Co-founders David Allemann and Caspar Coppetti are slated to become Co-CEOs, while Frank Sluis will assume the CFO role as part of a wider organizational update designed to tie founder vision more closely to execution.

See our latest analysis for On Holding.

Despite the leadership news, the share price has been under pressure. The 30 day share price return is 25.64% in the red and the year to date share price return is 25.94% in the red, while the three year total shareholder return of 18.47% still reflects earlier gains, suggesting recent momentum has faded.

If this leadership reset has you thinking about where else growth stories might emerge, it could be a good moment to check out 20 top founder-led companies

With the stock down around 26% over the past month and trading at roughly a 15% discount to one intrinsic estimate as well as below the current analyst target, you have to ask, is there a buying opportunity here or is future growth already priced in?

Most Popular Narrative: 39.7% Undervalued

On Holding's most followed narrative pegs fair value at $57.68, well above the last close of $34.77, which is what drives the current undervaluation debate.

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.

Read the complete narrative.

Curious what kind of revenue path, margin lift, and future profit multiple have to come together to support that $57.68 figure? The core narrative leans on strong top line expectations, expanding profitability and a valuation multiple that sits well above the broader luxury peer group. The exact hurdles it sets for sales, earnings and the discount rate are all laid out for you to weigh against your own view.

Result: Fair Value of $57.68 (UNDERVALUED)

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

However, this depends on premium pricing and heavy investment paying off, while foreign exchange swings and slower apparel or Asia DTC trends could easily challenge that script.

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

Another Angle on Valuation

The narrative leans on future earnings, but today the market is already paying a P/E of 44.9x for On Holding compared with 28.4x for peers and a fair ratio of 27.7x. That premium raises a simple question: how much execution risk are you really comfortable pricing in?

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

Next Steps

With sentiment this mixed, it makes sense to move quickly, look through the data yourself, and weigh both sides by checking the 2 key rewards and 1 important warning sign.

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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.

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