One-glance verdict
Undervalued
$52.97 our estimate vs market $24.88
Wall Street consensus: $29.50 (-44.3% lower than our fair-value estimate)
53% below our estimate, below the bear case
Fundamentals snapshot
Sony Group Corporation
SONY · NYQ · Technology · Consumer Electronics
Current price
$24.88
52-week range
$19.32 - $30.34
Market cap
$145.26B
Balance sheet
Healthy
43.67x Strong cushion
Net cash $1.89B. 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 13.2% on equity, ahead of 20% of its peers.
- Risk Stock trades 16832.1% above its 5-year average P/E.
- Risk Forward P/E (20.9x) is higher than trailing (20.6x) - earnings are expected to drop.
What this company does
Sony Group Corporation
Sony makes a wide variety of electronics, from PlayStation game consoles to image sensors used in cameras, and also has big businesses in music and movies. Most of its money comes from these different areas, showing how it has built a strong entertainment and technology group that connects through things like gaming and content. This diverse business model helps Sony manage risks across its various products and services.
How the company got here
Sony was founded in 1946 by Masaru Ibuka and Akio Morita, initially as Tokyo Tsushin Kogyo K.K.. The company first gained international recognition for its innovative electronic products like the TR-55 transistor radio and the CV-2000 home video tape recorder. Over the decades, Sony evolved from its electronics roots into a diversified global conglomerate. A significant turning point was its expansion into entertainment, including music and film, alongside its established technology businesses. The company officially changed its name from Sony Corporation to Sony Group Corporation in April 2021, reflecting its broad range of businesses.
What it actually does
Sony is a creative entertainment company with a strong technological foundation. It operates across various sectors, including video games, music, film and television, consumer electronics, and imaging and sensing solutions. The company's purpose is to fill the world with emotion through creativity and technology. Sony aims to achieve this by empowering creators, delivering new experiences in both physical and digital spaces, and maximizing the value of its intellectual property (IP).
Game & Network Services
This segment is primarily driven by PlayStation, Sony's video game brand. It encompasses the development, production, and sale of home video game consoles, as well as the creation and distribution of digital software and online services. The PlayStation platform boasts over 125 million monthly active users, highlighting its significant reach in the gaming world. This business line makes money from hardware sales, game software, and subscription services that offer online multiplayer and access to a library of games.
Music
Sony's Music segment is a major player in the global music industry, encompassing music publishing and recorded music. This includes managing and developing artists, producing and distributing music, and licensing music for various uses. The business has seen tremendous growth by building strong relationships with artists and expanding its reach through streaming platforms and audiences. Revenue is generated from sales of music, streaming royalties, and licensing fees.
Pictures
The Pictures segment is responsible for the production, acquisition, and distribution of motion pictures and television programs. It also operates television networks and direct-to-consumer distribution services. This segment acts as a hub for cross-company collaborations, including film and TV adaptations of popular game intellectual properties. Income is derived from box office sales, television licensing, streaming rights, and merchandise related to its film and TV content.
Entertainment Technology & Services
This segment covers a wide range of consumer and professional electronics, including televisions, audio equipment, cameras, and medical equipment. It also includes the development and sale of projectors and other digital imaging devices. Sony is also expanding its sports business and supporting creators in content production through this segment. Sales from these diverse products and services contribute to the company's revenue.
Imaging & Sensing Solutions
This segment focuses on the development and manufacturing of image sensors, which are crucial components in cameras and smartphones. Sony is a leader in this field, continuously advancing sensor technology for enhanced performance and image quality. The company has a strategic partnership with TSMC for the development and manufacturing of next-generation image sensors. Revenue comes from selling these advanced sensors to other manufacturers.
What management is betting on now
Sony's current strategy, outlined in its Fifth Mid-Range Plan, focuses on maximizing group-wide synergies and enhancing resilience in a changing business environment. A key priority is advancing its 'Creative Entertainment Vision,' which leverages technology to empower creators and deliver unique experiences across physical and digital realms. The company is also heavily investing in Artificial Intelligence (AI) to unlock new value and growth opportunities, particularly within its entertainment businesses, while emphasizing that AI will support, not replace, human creativity. Anime is identified as an important growth sector, with initiatives to scale its production and distribution globally. Furthermore, Sony is strengthening its competitiveness in sensor technology, essential for its imaging and sensing solutions business, through strategic partnerships.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $52.97 vs current price $24.88
Wall Street consensus is the average analyst price target: $29.50 (-44.3% lower than our fair-value estimate).
Our most-likely fair value is $52.97 a share — about 112.9% above today's price of $24.88, 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
$-1.89B
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.
Healthy
Worse cushion
Baseline
Better cushion
SONY
BASELINE
Sony Group Corporation
Total debt $11.83B 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 $0.00 Interest coverage 1,714.84x +3,826% vs SONY Carries about 39.3x more debt cushion than SONY.
Total debt $4.92B Interest coverage 5.73x -87% vs SONY Carries about 7.6x 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 13.2% on equity, ahead of 20% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Stock trades 16832.1% above its 5-year average P/E.
-
Forward P/E (20.9x) is higher than trailing (20.6x) - earnings are expected to drop.
-
Insider ownership is only 0.0% (peer median: 0.1%).
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)
20.56x
Forward P/E
20.91x
P/B
2.76x
P/S
0.01x
EV/EBITDA
0.12x
PEG ratio
1.64x
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
$11.83B
Total cash
$13.72B
Growth
How the business has been compounding
Revenue TTM
$80.30B
Revenue 5Y CAGR
4.4%
EPS TTM
1.21
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$12.31B
Free CF TTM
$9.41B
FCF margin
11.7%
Dividend
Shareholder payout
Yield
0.6%
Payout ratio
12.9%
Last ex-div date
2026-03-30