3 models fit Sony Group Corporation American Depositary Shares and they disagree: 1 of 3 land within 15% of the average.
Two or more of our models back this value.
Discount(i)Silver78
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Dividend discount.
ACCE opinionSony Group Corporation American Depositary Shares (SONY)
Fair value (3 models)
$33.29
ACCE price target
$26.50
Rating
Undervalued
Horizon
12 months
Fair value published on 20 Oct 2026, 16:04 CEST; previously $33.90 since 16 Oct 2026, 00:00 CEST.
ACCE price target published on 17 Sept 2026, 00:00 CEST.
Rating published on 20 Oct 2026, 16:04 CEST.
Price used: $26.08 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, and EV/EBITDA comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
21.7% below
+27.7% to fair value
ACCE score
71
out of 100
Analysts
75% buy
4 covering
P/E
21.7x
forward 16.0x
1-year return
-9.2%
Dividend yield
0.60%
Sony Group Corporation American Depositary Shares in four questions
Plain answers, details below
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Overview
ACCE thesis
Sony manufactures image sensors for smartphones and cameras, PlayStation gaming consoles, professional broadcast equipment, and music publishing assets acquired through recent deals. The image sensor business benefits from structural demand as computational photography and AI processing drive sensor complexity and unit economics, while Sony holds roughly 50% of the global smartphone sensor market. Gaming revenue faces near-term headwinds from console cycle maturity, but the shift toward live-service titles and back-catalog monetization through PlayStation Plus Premium offers a path to higher-margin recurring revenue. At 19.9x trailing PE with 8.2% revenue growth and 16.7% operating margins, Sony trades at a modest premium to hardware peers, justified by the 50% sensor market share and the early-stage expansion of subscription gaming, which currently represents a small fraction of gaming segment revenue. The music publishing portfolio, valued at roughly $3 billion in annual revenue, provides a defensive cash flow stream uncorrelated to hardware cycles.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
moderate
Net margin deeply negative
Net margin at -1.7% despite 16.7% operating margin and 32.2% gross margin signals material non-operating drag (likely finance costs or tax). Unsustainable at scale.
moderate
Sequential revenue decline
QoQ revenue down 6.5% despite YoY growth of 8.2%. Suggests seasonal weakness or demand softening in recent quarter.
moderate
Quality score lagging valuation
ACCE Quality subscore 65/100 is weakest pillar. Forward P/E 20.3 prices in earnings growth that quality metrics do not fully support.
AI research notes
AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Sony generated JPY 3.4T in free cash flow last 12 months, yielding 15.0% on current market cap.
Company beat earnings estimates by 9.1% most recently and 75% of analysts rate the stock Buy or Strong Buy.
Sony reduced share count by 3.2% last year while maintaining 13.2% return on equity and low 0.21 debt to equity.
Why it could disappoint
Company posted negative 1.7% net margin and negative 2.9% return on invested capital in latest interim report.
Stock trades at 19.9x trailing P/E and 20.3x forward P/E despite analyst upside of only 22.3% to mean target.
Year over year revenue growth slowed to 8.2%, well below the 5-year average of 194.0% per year.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 5, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where SONY's valuation models land
Price
$26.08
Model fair value
$33.29
Model range
$21.11 to $42.16
Fair value $33.29
Price $26.08
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
+A plain reason under every score
+Conviction breakdown and growth / value / quality / momentum scores