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SONY

Sony Group Corporation

Sony Group Corporation develops, designs, produces, manufactures, supplies, and sells electronic equipment, instruments, and devices for consumer, professional, and industrial use in Japan, the United States, Europe, China, the Asia-Pacific, and internationally. The company operates through Game & … Sony Group Corporation develops, designs, produces, manufactures, supplies, and sells electronic equipment, instruments, and devices for consumer, professional, and industrial use in Japan, the United States, Europe, China, the Asia-Pacific, and internationally. The company operates through Game & Network Services, Music, Pictures, Entertainment Technology & Services, and Imaging & Sensing Solutions. It develops, designs, produces, manufactures, provides, and sells smartphones and image sensors; plans, produces, manufactures, and sells music software, performances and merchandise, song lyrics and music management, licensing, animation works, and game applications. The company is also involved in the production, acquisition, sale, and distribution of motion pictures and television programs; operates television networks and direct-to-consumer distribution services; insurance business, including life insurance and non-life insurance; internet banking; production and sale of digital software add-on content; manufacturing and sales of home video game consoles; and interchangeable lens, projectors, and medical equipment. It has a strategic partnership with TCL Electronics Holdings Limited in the home entertainment sector; and a non-binding memorandum of understanding with Taiwan Semiconductor Manufacturing Company Limited for a strategic partnership regarding the development and manufacturing of image sensors. The company was formerly known as Sony Corporation and changed its name to Sony Group Corporation in April 2021. Sony Group Corporation was incorporated in 1946 and is headquartered in Tokyo, Japan.
Market price
USD 26.66
Undervalued by 101.0%
Base value (EV/EBITDA (12x)) is 101.0% above the market price
Data: Price updated 06 Nov 2026 14:48; FY2026, period ended 31 Mar 2026 from Yahoo Finance (downloaded 2 days ago). Last earnings: 05 Nov 2026
Verdict

Looks undervalued

PriceUSD 26.66
Fair value range44.82–62.38base 53.60
Estimate reliabilityLow
5-year outlook–

5-year outlook: Not shown because confidence is low: EV/EBITDA (12x) is somewhat apart.

Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.

Details and the full model are below.

EV/EBITDA (12x)

Market price below modeled range

Showing the EV/EBITDA (12x) you selected on the company card, using 2.43% growth, 2.9% terminal growth and 10.4% discount. The range varies these assumptions slightly; it is illustrative, not investment advice.

Assumptions: growth 2.43%, discount rate 10.40%, terminal growth 2.90% (sector defaults). See a worked example.

Blended growth assumption: 2.4% (sector default 7.0%, own revenue history 4.4%, analyst revenue consensus -0.8%).

Analyst consensus expects revenue growth of -0.8% a year; the growth assumption used is 2.4%.

Adjust assumptions

Show the recommended model instead

Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.

Compare models
  • Recommended: Free-cash-flow DCF — USD 34.22 (+28.4%)
  • EPS-based Gordon proxy — not applicable
    Not used: Cannot be computed: net income is zero or negative.
  • DCF (trailing free cash flow) — USD 34.22 (+28.4%)
    Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
  • FCFF (steady state) — USD 34.89 (+30.9%)
    Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
  • EV/EBITDA (12x) — USD 53.60 (+101.0%)
    Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
  • Fade DCF (10-year growth fade) — USD 34.25 (+28.5%)
    Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
  • EV/Sales (Rule of 40) — USD 98.79 (+270.6%)
    Not used: Used only when cash-flow models land far below the price; here they do not.
Illustrative range / share USD 44.82–62.38
Base scenario / share USD 53.60
Margin of safety (share of value) Cheap even in the bear case
Bear USD 44.8240.5%
Base USD 53.6050.3%
Bull USD 62.3857.3%

Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.

Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.

Price history and fair value

No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.

More detail: quality, peers, price history, dividends and financials

Quality score: 72 / 100

Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.

Profitability3 of 5 years profitable12 / 20
Cash generationfree cash flow positive in 4 of 5 years16 / 20
Growthrevenue -7.5% a year4 / 20
Balance sheetnet cash20 / 20
MarginsEBITDA margin 22%20 / 20

Peers in Communication Services

Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.

CompanyPriceMargin of safetyP/EP/BYieldQuality
SONY (this company) USD 26.66 22.1% – – – 82
VOD.L Vodafone Group Public Limited Company GBP 1.14 43.5% – 0.6 3.3% 66
PUB.PA Publicis Groupe S.A. EUR 102.40 42.1% 15.7 2.5 3.5% 90
CMCSA Comcast USD 24.23 40.8% 7.6 0.9 5.6% 82
TEF.MC Telefonica, S.A. EUR 3.34 34.2% – – 9.0% 59
INF.L Informa plc GBP 8.40 23.0% – 1.9 2.4% 66
EMBRAC-B.ST Embracer Group AB SEK 95.20 18.7% – 1.0 – 56
GOOG Alphabet Inc. (Class C) USD 286.13 10.4% 15.0 5.2 0.3% 100
GOOGL Alphabet Inc. (Class A) USD 287.27 10.0% 15.1 5.2 0.3% 100
Peer median 15.0 1.9

Dividends

Paid in the last 12 months: USD 0.16 per share · yield 0.60% at the current price.

YearDividends per share
2026 (so far)0.159
20250.151
20240.124
20230.112
20220.105
20210.108
Sector Communication Services
Exchange NYSE
Currency USD

Annual financial statement

Saved annual report · Fiscal year 2026 · Yahoo Finance annual statements · period ended 31 Mar 2026

RevenueUSD 124,796,200,000
EBITDAUSD 26,386,040,000
EBITUSD 14,579,490,000
Net incomeUSD -3,268,650,000
Free cash flowUSD 14,879,360,000
Capital expendituresUSD -4,576,810,000
DebtUSD 16,696,690,000
CashUSD 22,370,460,000
Working capitalUSD 9,173,670,000
Shares outstanding6,013,190,000
Reported dividends per shareUSD 0.0000