One-glance verdict
Undervalued
$41.35 our estimate vs market $21.16
Wall Street consensus: $29.38 (-29.0% lower than our fair-value estimate)
49% below our estimate, below the bear case
Fundamentals snapshot
Sony Group Corporation
SONY · NYQ · Technology · Consumer Electronics
Current price
$21.16
52-week range
$19.32 - $30.34
Market cap
$124.63B
Balance sheet
Healthy
43.67x Strong cushion
Net cash $3.33B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 3.7% last year.
- Reward Returns 12.3% on equity, ahead of 33% of its peers.
- Risk Stock trades 16338.3% above its 5-year average P/E.
- Risk Operating margin compressed from 11.6% to 10.7% over 3 years.
What this company does
Sony Group Corporation
Sony is a global entertainment and technology company famous for its PlayStation gaming consoles, but it also creates popular movies, music, and electronics like cameras and TVs. A large portion of its business comes from the PlayStation ecosystem (a network of products and services that work together), earning money not just from selling consoles but also from high-margin (meaning a large part of the sale price is profit) digital games and online subscriptions. Sony is also a leading maker of camera sensors, a critical component sold to many of the world's biggest smartphone brands.
How the company got here
Sony began in 1946 in a bombed-out department store in Tokyo, founded by Masaru Ibuka and Akio Morita. Their first product was a rice cooker that didn't work well, but they learned from it and went on to create Japan's first tape recorder and transistor radio. Key turning points were the invention of the Walkman in 1979, which changed how people listen to music, and the launch of the PlayStation in 1994, which made Sony a giant in the video game world. Over the years, Sony expanded beyond electronics by acquiring major music and film companies, making it the global entertainment and technology powerhouse it is today.
What it actually does
Sony is a massive company that makes a wide variety of products and services you likely encounter every day. It's a leading name in electronics, creating everything from TVs and headphones to professional cameras used to film movies. Beyond gadgets, Sony is a major force in entertainment, producing movies and TV shows through Sony Pictures, managing a huge catalog of music with artists like Harry Styles and Bad Bunny, and creating the globally popular PlayStation video game consoles and games. The company also develops critical technology, like the camera sensors used in many smartphones.
Game & Network Services (G&NS)
This is Sony's largest business segment, centered around the world-famous PlayStation. It makes money by selling PlayStation consoles (like the PS5), video games created by its own studios (first-party games), and games from other publishers (third-party games). A huge part of this business is its online services, where users pay for subscriptions like PlayStation Plus for online gaming and access to a library of games. This segment generates the largest share of Sony's revenue (the total money the company brings in from sales).
Music
Sony is one of the biggest music companies in the world, operating through Sony Music Entertainment. It earns money from a few key areas: recorded music, which includes digital streaming and physical sales of music from its vast roster of artists, and music publishing, which involves licensing (giving permission to use) the song compositions for use in movies, commercials, and by other artists. This segment also profits from live events and merchandise (branded products sold to fans). The music business is a significant and highly profitable part of Sony.
Pictures
This segment is all about movies and television, run by Sony Pictures Entertainment. It produces and distributes films for theaters, including major franchises, and creates a wide variety of TV shows for broadcast networks and streaming services. Revenue comes from box office ticket sales, licensing its movies and shows to TV channels and streaming platforms, and home entertainment sales like Blu-rays. This part of the company also includes the anime streaming service Crunchyroll.
Entertainment, Technology & Services (ET&S)
This is the traditional electronics part of Sony that many people grew up with. It includes the design and sale of a wide range of consumer electronics like BRAVIA televisions, headphones, and high-end digital cameras. This segment makes money by selling these physical products to consumers and professionals. While still a large business, Sony has shifted its focus in this area towards more premium, high-value products where its technology stands out.
Imaging & Sensing Solutions (I&SS)
This is a highly technical but very important and profitable part of Sony's business. It designs and manufactures advanced image sensors, which are the tiny chips inside cameras (including smartphone cameras) that capture light to create a picture. Many of the world's leading smartphone brands use Sony's sensors in their devices, paying Sony for this critical component. This segment has become a major driver of Sony's profits due to the high demand for high-quality smartphone cameras.
What management is betting on now
Sony's leadership is focused on a strategy they call "Creative Entertainment," aiming to blend their technology and entertainment businesses more closely. A major priority is maximizing the value of its intellectual property (IP), which means creating movies or TV shows based on popular PlayStation games, and vice-versa. They are also investing heavily in their online platforms like the PlayStation Network and Crunchyroll to build direct relationships with millions of users. Additionally, Sony sees artificial intelligence (AI) as a key tool to help creators and make their businesses more efficient, while also continuing to dominate the high-end image sensor market.
Price history
How the share price has moved
—
Loading price history…
Is it cheap or expensive?
Fair value $41.35 vs current price $21.16
Wall Street consensus is the average analyst price target: $29.38 (-29.0% lower than our fair-value estimate).
Our most-likely fair value is $41.35 a share — about 95.4% above today's price of $21.16, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $3.3B - more cash than debt. Interest coverage 43.7x.
Net debt
$-3.33B
Interest coverage
43.67x
Sony Group Corporation's profit covers its interest bill about 43.7 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
SONY
BASELINE
Sony Group Corporation
Total debt $10.30B Interest coverage 43.67x This is the baseline the peer rows are being compared against.
Total debt $125.43B Interest coverage 53.89x +23% vs SONY Carries about 1.2x more debt cushion than SONY.
Total debt $84.71B Interest coverage 33.83x -23% vs SONY Carries about 1.3x less debt cushion than SONY.
Total debt $47.36B Interest coverage 7.63x -83% vs SONY Carries about 5.7x less debt cushion than SONY.
Total debt $16.74B Interest coverage 17.16x -61% vs SONY Carries about 2.5x less debt cushion than SONY.
Total debt $32.47B Interest coverage 0.63x -99% vs SONY Carries about 69.6x less debt cushion than SONY.
What you should know
The case for and against SONY
3 Rewards
3 Risks
Rewards
-
Revenue grew 3.7% last year.
-
Returns 12.3% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Stock trades 16338.3% above its 5-year average P/E.
-
Operating margin compressed from 11.6% to 10.7% over 3 years.
-
Insider ownership is only 0.0% (peer median: 0.6%).
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)
19.96x
Forward P/E
17.78x
P/B
2.47x
P/S
0.01x
EV/EBITDA
0.01x
PEG ratio
1.91x
Profitability
How much profit each dollar creates
Gross margin
31.2%
Operating margin
10.7%
Net margin
-2.6%
ROE
12.3%
ROA
3.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.20x
Current ratio
1.18x
Quick ratio
0.80x
Total debt
$10.30B
Total cash
$13.63B
Growth
How the business has been compounding
Revenue TTM
$77.01B
Revenue 5Y CAGR
4.4%
EPS TTM
1.06
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$12.01B
Free CF TTM
$9.18B
FCF margin
11.9%
Dividend
Shareholder payout
Yield
0.8%
Payout ratio
14.2%
Last ex-div date
2026-03-30