One-glance verdict
Undervalued
$45.69 our estimate vs market $24.96
Wall Street consensus: $30.00 (-34.3% lower than our fair-value estimate)
45% below our estimate, below the bear case
Fundamentals snapshot
Sony Group Corporation
SONY · NYQ · Technology · Consumer Electronics
Current price
$24.96
52-week range
$19.32 - $30.34
Market cap
$145.82B
Balance sheet
Healthy
43.67x Strong cushion
Net cash $1.92B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 3.7% last year.
- Reward Returns 13.2% on equity, ahead of 33% of its peers.
- Risk Stock trades 17318.4% above its 5-year average P/E.
- Risk Insider ownership is only 0.0% (peer median: 0.6%).
What this company does
Sony Group Corporation
Sony is a global company known for its PlayStation video games, but it also produces movies, music, and high-tech camera sensors for smartphones. The company makes a significant portion of its money from its gaming division, which creates a strong ecosystem (a family of products, like consoles and games, designed to work together and keep customers buying). This is important because when customers buy a console, they are likely to keep spending money on games and services for years, providing Sony with a reliable stream of income.
How the company got here
Founded in Tokyo in 1946 by Masaru Ibuka and Akio Morita, Sony began as an electronics shop. A key turning point was the creation of Japan's first transistor radio in the 1950s, followed by iconic products like the Trinitron TV and the Walkman personal stereo. While facing intense competition in electronics in the 2000s, the massive success of its PlayStation gaming console helped redefine the company. Today, Sony is a global conglomerate, having expanded from electronics into a major force in gaming, music, movies, and high-tech components like image sensors.
What it actually does
Sony is a sprawling company that creates a wide range of products and services you likely encounter daily. You might know them for the PlayStation 5, their popular headphones and high-quality cameras, or for producing blockbuster movies like the 'Spider-Man' series. They also operate a massive music business, representing many famous artists, and manufacture critical electronic parts, like the camera sensors found in many smartphones. Essentially, Sony makes money by selling electronics, creating and licensing (giving permission to use) entertainment content like games, films, and music, and by supplying key technology to other manufacturers.
Game & Network Services
This is Sony's largest business by revenue and is centered around the PlayStation ecosystem. The company makes money not just from selling the PlayStation 5 console itself, but more importantly, from the games and services sold through it. This includes selling digital copies of games, taking a cut from games sold by other publishers on the PlayStation Store, and charging for subscription services like PlayStation Plus, which allows online multiplayer gaming and offers a library of free games. A significant and growing part of this business is 'add-on content'—the small in-game purchases players make for things like character outfits or extra items.
Music
Sony's music division is one of the largest in the world, involved in both finding and developing artists (recorded music) and managing the rights to songs (music publishing). It earns money from streaming royalties (a small payment each time a song is played on a service like Spotify), digital downloads, and physical sales of music. The music publishing side collects licensing fees when a song is used in a movie, commercial, or by another artist, ensuring the original songwriters get paid.
Pictures
This segment is all about movies and TV shows, operating through Sony Pictures Entertainment. It produces, acquires, and distributes films for theaters, including major franchises like 'Jumanji' and 'James Bond'. The business also creates television shows for networks and streaming services and makes money by licensing its large library of over 3,500 films and TV shows. A growing part of this segment is the anime-focused streaming service, Crunchyroll, which earns revenue from paid subscriptions.
Entertainment, Technology & Services
This is Sony's traditional electronics business, responsible for a wide range of consumer products. Here you'll find BRAVIA televisions, high-end digital cameras and lenses, headphones, and soundbars. Revenue in this segment comes directly from the sale of these physical products to consumers and professionals. While it's a diverse category, the company focuses on premium, high-performance products.
Imaging & Sensing Solutions
This highly technical and important segment designs and manufactures image sensors for a variety of devices. These are the tiny electronic components that capture light to create a digital image, and Sony is a world leader in this technology. While they are used in Sony's own cameras, a huge part of this business is selling these sensors to other companies, including major smartphone manufacturers. This means Sony earns revenue even when you buy a non-Sony product that uses its advanced camera technology inside.
What management is betting on now
Sony's leadership is focused on what they call a 'Creative Entertainment Vision,' which aims to blend their technology with their entertainment businesses. A major priority is maximizing the value of their intellectual property (IP), such as turning popular PlayStation games into movies and TV shows. They are also heavily investing in their core technologies, particularly in strengthening their leadership in image sensors through partnerships. Additionally, Sony sees anime as a key growth area and is working to expand its global fan community through services like Crunchyroll and strategic partnerships.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $45.69 vs current price $24.96
Wall Street consensus is the average analyst price target: $30.00 (-34.3% lower than our fair-value estimate).
Our most-likely fair value is $45.69 a share — about 83.1% above today's price of $24.96, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $1.9B - more cash than debt. Interest coverage 43.7x.
Net debt
$-1.92B
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 $11.99B Interest coverage 43.67x This is the baseline the peer rows are being compared against.
Total debt $128.81B Interest coverage 50.88x +17% vs SONY Carries about 1.2x more debt cushion than SONY.
Total debt $84.34B Interest coverage 33.83x -23% vs SONY Carries about 1.3x less debt cushion than SONY.
Total debt $46.04B Interest coverage 7.63x -83% vs SONY Carries about 5.7x less debt cushion than SONY.
Total debt $16.65B Interest coverage 17.16x -61% vs SONY Carries about 2.5x less debt cushion than SONY.
Total debt $32.02B 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
2 Risks
Rewards
-
Revenue grew 3.7% last year.
-
Returns 13.2% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Stock trades 17318.4% above its 5-year average P/E.
-
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)
21.15x
Forward P/E
20.97x
P/B
2.80x
P/S
0.01x
EV/EBITDA
0.12x
PEG ratio
1.66x
Profitability
How much profit each dollar creates
Gross margin
32.2%
Operating margin
16.7%
Net margin
-1.7%
ROE
13.2%
ROA
4.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.21x
Current ratio
1.25x
Quick ratio
0.82x
Total debt
$11.99B
Total cash
$13.91B
Growth
How the business has been compounding
Revenue TTM
$81.40B
Revenue 5Y CAGR
4.4%
EPS TTM
1.18
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$12.47B
Free CF TTM
$9.54B
FCF margin
11.7%
Dividend
Shareholder payout
Yield
0.6%
Payout ratio
13.1%
Last ex-div date
2026-03-30