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Peloton Interactive, Inc. (PTON) stock analysis

PTONNasdaqSporting & Athletic Goods, NECFiscal year ends June 30
Financials through Q1 FY2027, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 5, 2026Score 7/3012% below fair value
$5.72−0.09 (-1.55%)

Close on Nov 11, 2026Market cap $2.51BP/E 19.1Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value1Growth2Performance2Health2Dividend0

Weak7 of 30 checks passed

Peloton Interactive passes 7 of the 30 checks behind our score; 15 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
1/6
Growth
2/6
Past performance
2/6
Financial health
2/6
Dividend
0/6

What stands out

  • Trading below fair value

    The share price of $5.72 is below our fair value estimate of $6.54.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 4614% of total debt.

  • Guidance raised

    Peloton Interactive raised its Full Year FY26 Free Cash Flow outlook on May 7, 2026.

  • Gross margin improving

    Gross margin was 54.8% over the last twelve months, against 50.8% a year earlier.

What to watch

  • Margin of safety under 20%

    The price is 12.5% below fair value, less than the 20% cushion we look for.

  • Revenue growing under 10% a year

    Revenue grew -4.4% a year over the last three fiscal years, short of the 10% we look for.

  • Interest not well covered

    Operating income covers interest expense 1.9 times; we look for at least 5.

  • Elevated bankruptcy risk

    The Altman Z-score is -0.71; above 3 is the safe zone and below 1.8 the distress zone.

Valuation1/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E above the industry

    Peloton Interactive's P/E of 19.1 is above the Dolls, Toys, Games and Sporting and Athletic median of 18.1.

  • EV/EBITDA against its history

    Needs positive EBITDA and price history.

  • P/S above the industry

    Peloton Interactive's price-to-sales of 1.02 is above the Dolls, Toys, Games and Sporting and Athletic median of 0.92 (book value is negative, so we use sales).

  • Trading below fair value

    The share price of $5.72 is below our fair value estimate of $6.54.

  • Margin of safety under 20%

    The price is 12.5% below fair value, less than the 20% cushion we look for.

Growth2/6

  • Revenue growing under 10% a year

    Revenue grew -4.4% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing slower than the industry

    Revenue grew -0.1% over the last twelve months; the Dolls, Toys, Games and Sporting and Athletic median is 1.9%.

  • Guidance raised

    Peloton Interactive raised its Full Year FY26 Free Cash Flow outlook on May 7, 2026.

  • Gross margin improving

    Gross margin was 54.8% over the last twelve months, against 50.8% a year earlier.

Past performance2/6

  • Return on equity

    Needs positive equity and five years of results.

  • Return on invested capital

    Needs operating income and invested capital.

  • Return on equity against the industry

    Needs positive equity.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin above its 5-year average

    Net margin was 5.9% over the last twelve months, against a 5-year average of -29.3%.

  • Net margin above the industry

    Peloton Interactive's net margin of 5.9% is above the Dolls, Toys, Games and Sporting and Athletic median of 0.5%.

Financial health2/6

  • Debt level

    Needs debt and equity figures.

  • Debt trend

    Needs a balance sheet from five years ago with positive equity.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 4614% of total debt.

  • Interest not well covered

    Operating income covers interest expense 1.9 times; we look for at least 5.

  • Short-term assets cover short-term debts

    Current assets are 3.05 times current liabilities.

  • Elevated bankruptcy risk

    The Altman Z-score is -0.71; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Peloton Interactive has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$6.54

The share price is 12% below this estimate.

20%+ below
Near fair value
20%+ above
$5.72Price$6.54Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/E18.1×–18.1×$5.4244%
EV/EBITDA9.5×–9.5×$9.2639%
Earnings power14.9% cost of equity––$3.1417%
Fair value$6.54100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Dolls, Toys, Games and Sporting and Athletic median 18.1

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$47.18M
Value traded per 1% price move
$20.43M

Downside

High risk

Typical loss in a bad month
34.5%
Volatility (annualized)
58%
Sharpe ratio, 1 year
-0.48
Beta to the S&P 500 (5Y)
2.21

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2017 to 2026

Gross margin

52.6%+16.4 pts over 5 years

Operating margin

6.6%+11.2 pts over 5 years

Net margin

2.6%+7.3 pts over 5 years

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