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Peloton Interactive, Inc. (PTON)

Fair Value
Consumer CyclicalLeisureUnited States

Fundamental

61

Price

$4.99

Market Cap

$2.19B

Part 1 · What the company is worth

Overview

Peloton Interactive, Inc. provides fitness and wellness products and services in North America and internationally. It offers connected fitness products, such as the Original Bike and Original Bike+; Cross Training Bike, Bike+, Tread, Tread+, and Row+; Peloton Bike+ Pro, Tread+ Pro, and Row+ Pro; and Precor Cardio, Precor Strength, Connected Fitness Solutions, and Wellness Solutions. The company also provides all-access, rental, and Peloton App memberships. In addition, the company leases Peloton Bike products. The company sells its products through e-commerce, third-party retail partners, owned micro-store showrooms, and its commercial business unit. Peloton Interactive, Inc. was founded in 2012 and is headquartered in New York, New York.

No editorial profile for this company yet

Direct competitors

Who this company fights with for the same customers

No editorial profile for this company yet

No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$2.45B

Trailing 12 months (through 6/30/2026)

Net Income

$63M

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$378M

Total Equity

$-140M

Total Liabilities

$2.20B

Current Ratio

2.84

Interest Coverage

1.30

Debt/EBITDA

8.03

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseFairly Valued

Fair Value

$4.65

Current Price

$4.99

Margin of Safety

-7.3%

Fair Value Range

$3.02 - $6.28

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$7.90
Discounted cash flow (DCF):Not enough data to compute it
Earnings multiple (P/E):$2.14
Graham growth formula:$2.28
Earnings power value (EPV):$1.59
Justified P/B:Not enough data to compute it
Dividend discount (Gordon):Not enough data to compute it
P/FFO, funds from operations:-
Mid-cycle earnings:Not enough data to compute it
Revenue multiple:$9.42
Analyst Consensus:Buy (14B / 12H / 1S)
Last Earnings Surprise:+2.28%

Valuation Metrics

P/E Ratio

35.64

ROE

-45.2%

P/B Ratio

-

P/FCF

-

Gross Margin

52.6%

ROIC

8.3%

Profitability Radar

Value Creation (Economic Moat)

ROIC

8.3%

WACC

12.5%

ROIC − WACC

-4.2 pp

ROIC is below the cost of capital — the company is destroying value for every dollar invested.

Fundamental Analysis Criteria

Passed (14)

  • EPS shows upward trend
  • ROIC 8.3%
  • Gross Margin 52.6%
  • Operating Margin 6.6%
  • Positive Free Cash Flow
  • CapEx intensity
  • Current Ratio
  • Return on Tangible Assets
  • Low reliance on intangibles
  • Analyst Consensus 52% Buy
  • Earnings Surprise avg 111.7%
  • Earnings Quality (OCF/NI) 6.13
  • Net Margin Trend 2.6% vs -4.8%
  • Piotroski F-Score 8/9

Failed (7)

  • Price CAGR -22.43%
  • Interest Coverage
  • Debt/EBITDA
  • DCF valuation (Unknown)
  • ROE -418.4%
  • Revenue Growth 5Y -9.5%
  • Share Dilution 13.9%

Unavailable (6)

  • P/FCF NaN
  • P/B Ratio NaN
  • Dividend Payout NaN%
  • Debt/Equity ratio
  • Price below Graham Number
  • PEG Ratio (need PE > 0 and growth > 0)

Piotroski F-Score

8/9

Strong financial health

score
criteria

Earnings Quality

6.13

High quality: earnings backed by cash

Share Dilution

13.9%

Issuing new shares, diluting ownership

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Peter C. SternCEO, President & Director53
Mr. Dion Camp SandersChief Commercial Officer51
Mr. Nick V. CaldwellChief Product Officer43
Mr. Siddharth B. ThackerChief Financial Officer48
Mr. Charles KirolChief Operating Officer58
Mr. Saqib BaigChief Accounting Officer47
Mr. Francis ShanahanChief Technology Officer-
Mr. James Milton Marsh Jr., CFA, CPASenior VP & Head of Investor Relations-
Ms. Tammy Albarran J.D.Chief Legal Officer & Corporate Secretary-
Ms. Dianna KrausChief Communications Officer-

Audit Risk

5

Board Risk

5

Compensation Risk

8

Shareholder Rights Risk

10

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-08-06

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-05-07

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-08-06

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for PTON, sourced from Markets Gazette.

  • 8d agoNEUTRAL
    Peloton Holds Talks for Potential $800 Million Debut Bond Deal

    Peloton Interactive Inc. is reportedly exploring its first-ever corporate bond issuance, aiming to raise approximately $800 million. This move signals a potential shift in the company's financing strategy, moving towards debt markets to fund operations or strategic initiatives. While the specifics of the bond's terms and use of proceeds are not yet public, such a deal could provide Peloton with significant capital. Investors will be watching closely for details on the bond's yield and maturity, which will indicate the market's perception of Peloton's creditworthiness and future prospects.

  • 8/6/2026NEGATIVE
    Peloton Slides on Subscription Lag; Six Flags Falls on Revenue Miss | Stock Movers

    Peloton Interactive, Inc. experienced a significant decline as its fourth-quarter report revealed an accelerated rate of subscription cancellations, commonly referred to as 'churn.' Furthermore, the exercise equipment manufacturer issued revenue guidance for the upcoming first quarter and the entirety of fiscal year 2027 that fell short of Wall Street's projections. This dual disappointment in subscriber retention and future revenue outlook signals considerable headwinds for the company, likely impacting investor sentiment and future stock performance.

  • 5/7/2026POSITIVE
    Peloton Stock Rallies After Better-Than-Expected Q3 Revenue Results

    Peloton Interactive Inc. (NASDAQ: PTON) experienced a significant stock rally following the release of its Q3 financial results, which surpassed revenue expectations. While specific figures were not detailed in the initial report, the positive market reaction suggests investors are encouraged by the company's performance in a competitive fitness technology market. This uptick in share price may indicate a renewed confidence in Peloton's business strategy and its ability to navigate current economic conditions, potentially signaling a turning point for the company.

  • 3/17/2026POSITIVE
    Why Peloton Stock Skyrocketed Tuesday Morning

    Peloton Interactive Inc. saw its stock surge Tuesday morning following a dual announcement that is likely to be viewed favorably by investors. While specific details of the "double dose of good news" are not provided in the summary, such positive catalysts typically involve significant operational improvements, strategic partnerships, or favorable financial updates. Investors will be closely watching for further disclosures to understand the long-term implications of these developments on Peloton's market position and profitability.

  • 3/14/2026NEUTRAL
    Is the Sell-Off in Peloton Overblown?

    Peloton's stock has experienced a dramatic decline, trading 98% below its all-time highs. This significant depreciation reflects extreme investor pessimism surrounding the connected fitness company. While the article questions if the sell-off is overblown, it does not provide new financial data or forward-looking statements to suggest an immediate reversal. The current sentiment is overwhelmingly negative, but the question posed implies potential for a turnaround, leaving the immediate outlook uncertain without further catalysts.

  • 3/5/2026NEGATIVE
    1 Reason I Haven't Bought Peloton -- and Probably Never Will

    Peloton Interactive's shares have plummeted 98% from their all-time highs, reflecting deep market skepticism about its recovery prospects and long-term viability. This collapse highlights structural issues within its business model, potentially stemming from increasing competition, high operating costs, or an ineffective market strategy. For investors, this figure serves as a strong warning sign, suggesting avoidance of the stock as a significant recovery appears unlikely given the accumulated losses and negative market perception.

  • 3/3/2026NEGATIVE
    Why Peloton Stock Plummeted by Over 28% Last Month

    Peloton Interactive experienced a significantly disappointing fiscal second quarter, with its stock plummeting over 28% last month. The company missed consensus analyst estimates for both revenue and earnings, a "double miss" that severely impacted investor confidence. This negative performance raises questions about Peloton's ability to navigate a post-pandemic market and retain its user base. Investors should closely monitor the company's upcoming strategic moves to assess potential recovery or further pressure on the stock.

  • 3/2/2026NEUTRAL
    Better Stock to Buy Right Now: Peloton vs. Uber

    Markets Gazette delves into a comparison between two digital era giants: Peloton Interactive and Uber Technologies. Both companies, born and grown in the internet age, represent innovative and technology-driven business models. This type of comparative analysis is crucial for investors seeking to identify growth opportunities within the tech sector, evaluating factors such as scalability, market penetration, and business model sustainability. While the article does not provide a direct recommendation, it lays the groundwork for an in-depth assessment of these two companies' future prospects, highlighting their nature as forward-thinking enterprises.

  • 2/25/2026NEGATIVE
    What to Know Before Buying Peloton Stock in 2026

    Peloton Interactive's management team has issued a significant warning to investors, projecting another decline in revenue for fiscal year 2026. This direct statement from leadership suggests persistent weakness in demand or an ongoing struggle to reverse current negative trends. For those considering an investment in Peloton stock, this forecast presents a considerable hurdle, indicating that the path to profitability and sustainable growth may be longer and more challenging than anticipated. Investors should carefully weigh the implications of these projections on future earnings and the stock's valuation, as a revenue decline often translates into downward pressure on share prices.

via Markets Gazette