One-glance verdict
Overvalued
$44.21 our estimate vs market $68.11
Wall Street consensus: $70.00 (58.4% higher than our fair-value estimate)
54% above our estimate, beyond the bull case
Fundamentals snapshot
Sonova Holding AG
SONVY · PNK · Healthcare · Medical Devices
Current price
$68.11
52-week range
$42.26 - $69.01
Market cap
$20.23B
Balance sheet
Watch
23.55x Strong cushion
Net debt $1.19B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 20.5% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Risk Operating margin compressed from 20.0% to 19.5% over 3 years.
- Risk Insider ownership is only 0.0% (peer median: 0.3%).
What this company does
Sonova Holding AG
Sonova Holding AG makes and sells hearing aids and cochlear implants for people of all ages. Their money primarily comes from selling these medical devices and related services through their own stores and by working with audiologists and retail chains. This business matters because it helps people with hearing loss improve their quality of life.
How the company got here
Sonova Holding AG, originally founded in 1947 as Phonak Holding AG, has a long history in the hearing care industry. The company's journey began with a focus on developing innovative solutions for hearing loss. A significant turning point was its name change to Sonova Holding AG in August 2007, reflecting a broader scope beyond its initial Phonak brand. Over the decades, Sonova has grown through both organic development and strategic acquisitions, establishing itself as a global leader in hearing solutions.
What it actually does
Sonova Holding AG is a company that creates and sells products designed to help people hear better. Think of it like a company that makes advanced versions of hearing aids, but also other devices that can improve sound for various situations. They develop, manufacture, and distribute these solutions worldwide, aiming to enhance the quality of life for individuals with hearing impairments and those seeking improved audio experiences.
Hearing Instruments
This is Sonova's largest business, focusing on traditional hearing aids and related accessories. They design, build, and sell a wide range of hearing instruments under well-known brands like Phonak and Unitron. This segment also includes wireless headsets, specialized hearables that enhance speech, and high-fidelity headphones, often leveraging advanced technology to improve sound clarity. They sell these products through a mix of direct-to-consumer channels, like their own stores, and by wholesaling to independent hearing specialists and retail chains.
Cochlear Implants
This segment is dedicated to a more advanced form of hearing restoration: cochlear implants. These are electronic devices surgically implanted to provide a sense of sound to people with severe to profound hearing loss. Sonova's brand in this area is Advanced Bionics. Unlike hearing aids that amplify sound, cochlear implants bypass damaged parts of the ear to directly stimulate the auditory nerve. This business represents a smaller but critical part of Sonova's overall offerings, catering to a specific and significant need.
Lifestyle-Aligned
This newer segment focuses on integrating hearing technology with everyday digital life, often incorporating artificial intelligence (AI). The goal here is to create connected audio solutions that go beyond just addressing hearing loss, aiming to enhance overall auditory experiences. This could include smart devices that adapt to different environments or offer advanced audio features for entertainment and communication. This segment represents Sonova's push into more innovative, digitally-driven products that blend hearing enhancement with modern technology.
What management is betting on now
Sonova's management is focused on expanding its reach in the hearing care market and embracing technological advancements. A key priority is the continued innovation in hearing instruments, making them smarter and more connected. They are also investing in the growth of their cochlear implant business, recognizing the significant unmet need in that area. Furthermore, Sonova is committed to integrating AI and digital capabilities across its product lines, aiming to create a more seamless and enhanced audio experience for all users.
Price history
How the share price has moved
—
Loading price history…
Is it cheap or expensive?
Fair value $44.21 vs current price $68.11
Wall Street consensus is the average analyst price target: $70.00 (58.4% higher than our fair-value estimate).
Our most-likely fair value is $44.21 a share — about 35.1% below today's price of $68.11, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $1.2B. Interest coverage 23.6x.
Net debt
$1.19B
Interest coverage
23.55x
Sonova Holding AG's profit covers its interest bill about 23.6 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
SONVY
BASELINE
Sonova Holding AG
Total debt $2.07B Interest coverage 23.55x This is the baseline the peer rows are being compared against.
Total debt $3.78B Interest coverage 4.79x -80% vs SONVY Carries about 4.9x less debt cushion than SONVY.
Total debt $948.40M Interest coverage 7.98x -66% vs SONVY Carries about 3.0x less debt cushion than SONVY.
Total debt $29.09M Interest coverage 371.93x +1,479% vs SONVY Carries about 15.8x more debt cushion than SONVY.
Total debt $7.60B Interest coverage 4.63x -80% vs SONVY Carries about 5.1x less debt cushion than SONVY.
Total debt $12.62B Interest coverage 11.38x -52% vs SONVY Carries about 2.1x less debt cushion than SONVY.
What you should know
The case for and against SONVY
3 Rewards
2 Risks
Rewards
-
Returns 20.5% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 4/10 years.
-
Dividend yield is 1.7% with 15-year payout history.
Risks
-
Operating margin compressed from 20.0% to 19.5% over 3 years.
-
Insider ownership is only 0.0% (peer median: 0.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
30.27x
Forward P/E
22.34x
P/B
6.38x
P/S
5.61x
EV/EBITDA
25.34x
PEG ratio
1.62x
Profitability
How much profit each dollar creates
Gross margin
73.7%
Operating margin
19.5%
Net margin
11.9%
ROE
20.5%
ROA
7.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.65x
Current ratio
1.75x
Quick ratio
1.16x
Total debt
$2.07B
Total cash
$871.20M
Growth
How the business has been compounding
Revenue TTM
$4.35B
Revenue 5Y CAGR
-1.2%
EPS TTM
2.25
EPS 5Y CAGR
-4.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$886.29M
Free CF TTM
$762.36M
FCF margin
17.5%
Dividend
Shareholder payout
Yield
1.7%
Payout ratio
51.6%
Last ex-div date
2026-06-22