QualityDipStocks / Consumer Discretionary · Recreational Games/Products/Toys
Peloton Interactive PTON
Outside our quality screen, so we don’t track its dips. It’s 31% below its 52-week high.
Outside our quality screen, trading well below our fair value estimate.
Worth knowing
- FCF yield 16%, top 3% of the 1145 we measure
From the data on this page, as of the last close. How we pick these
- Fair value est.
- $13.72+159%
- Market Value
- $5.19price +2%
- Off 52-wk high
- −31%
- Risk vs market
- Above marketbeta 1.45
5 bullish · 5 bearish See why
Repriced or dip?
Dip: business intact
The price is 31% below its 52-week high (Nov 7), but the business held up: revenue growth rate +6.9 pts, earnings per share turned to a profit, operating margin +6.9 pts.
Some numbers held up (revenue growth rate +6.9 pts, earnings per share turned to a profit, operating margin +6.9 pts), others slipped. The price is 31% below its 52-week high.
The price is 31% below its 52-week high, and the business changed too.
Within 10% of its 52-week high, so there is no dip to judge yet.
The evidence 10 numbers, high vs now
- Revenue, last 12 months$2.5B → $2.4B (−0.4%)about the same
- Revenue growth rate−8.7% → −1.8% a year (+6.9 pts)held up
- Earnings per share, 12 monthsturned to a profitheld up
- Free cash flow, 12 months$380M → $378M (−0.7%)about the same
- Operating margin−0.3% → 6.6% (+6.9 pts)held up
- Shares outstanding+1.4% (more shares, each owns less)held up
- Net cash (cash minus debt)+13.4% of market cap since the highheld up
- Stock vs its sector (Consumer Discretionary)stock −31%, sector median +13% since Nov 7changed
- Price fall vs business numbersprice −31%, revenue/EPS/FCF median −1% (shown, not scored)
- Valuation multipleP/FCF 8.7× at the high → 6.1× now (shown, not scored)
Business numbers as reported at the high (12 months to Sep 30, 2025) vs the latest filing (12 months to Jun 30, 2026). Each measure is scored from −1 (business changed) to +1 (business intact) and weighted: revenue, earnings per share, free cash flow, operating margin, revenue growth rate, share count, net cash and the move vs its sector. 60 or more reads as a dip, 40 or less as a repricing. Analyst estimates are not in our data, so they are not used. How to read it
Data-based read, not advice.
Priced in
How much growth the market assumed at the 52-week high, the low and today (a reverse DCF).
At the high ($7.66, Nov 7) the price assumed about −8%/yr free-cash-flow growth; at the low ($3.71, Mar 10) about −19%; today about −14%. The last 3 years delivered −4%/yr (revenue).
Dashed line: what the last 3 years delivered, −4%/yr (revenue)
| High | Low | Now | |
|---|---|---|---|
| Price | $7.66Nov 7 | $3.71Mar 10 | $5.30 |
| Implied growth | −8% | −19% | −14% |
| P/E | n/a | n/a | 36.6× |
| P/FCF | 8.7× | 4.5× | 6.1× |
| EV/Sales | 1.5× | 0.8× | 1.0× |
What this means: the higher the implied growth, the more the price already counts on. If today's number sits well below what the business has delivered, the market expects less than its track record.
How it’s computed
Reverse DCF: the same 10-year free-cash-flow model as our fair value estimate (9.5% discount rate, growth for years 1–5 fading to 3% by year 10, 3% after), solved for the growth that makes it equal the market value at each price. For the high and the low we use only the filings that were public on that day, so nothing from a later report leaks back. Market value = that close × diluted shares. P/E = market value / 12-month net income; Price / FCF = market value / 12-month free cash flow; EV / Sales = (market value + debt − cash) / 12-month revenue. Hidden when the share count moved over 20% (split, merger), free cash flow is negative, or the company reports in another currency.
Valuation
What we estimate it's worth, and how it ranks on value vs every stock we cover.
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 3.0% ±2 points. Bear = 10.5% and 1.0%; bull = 8.5% and 5.0% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price is below even the bear case.
Cyclical / peak cash flow — treat with care
What the price implies To be worth today’s price, PTON’s free cash flow would need to shrink about 14% a year for five years; our estimate uses 3%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 31 to Nov 2, 252 sessions). Beta = how much PTON moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Swings more than the market, and its own price swings are 4.6× the S&P 500’s.
- Beta vs S&P 500
- 1.45
- Volatility
- 59% vs 13% SPY
- Correlation SPY
- 0.31
- Correlation QQQ
- 0.25
How it ranks
Where PTON stands vs every one of the 1,996 stocks we cover that has the number. Longer bar = better.
Top quarter on 2 of 5 measures
- Discount to fair value estimate159% · price below our base caseTop 2%of 1,314
- Free cash flow yield16% · free cash flow vs market capTop 3%of 1,391
- Dividends + buybacks yield0% · cash paid out or used to retire shares, vs market capLowest 1%of 1,836
- Revenue growth, last 12 months−1.8% · vs the 12 months beforeLowest 9%of 1,814
- Operating margin6.6% · of sales kept as operating profitLowest 31%of 1,288
From SEC filings and our fair value estimate model. A ranking, not advice.
Valuation details
DCF $13.72 · MV $5.19 · FCF value $19.32
Cyclical / peak cash flow — treat with care
Assumes 3.0% growth for 5 years (revenue grew -4.4% a year FY23–FY26; floored at 3%), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $0.87 a share (fiscal year to Jun 30, 2026), from the 10-K filed Aug 6, 2026. Net debt $123M, not deducted.
Fundamentals
The business itself: sales, profits, cash and debt, from SEC filings.
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
ValuationFree-cash-flow yield of 16.3% (price / FCF 6.1×): $378M of free cash in the last 12 months.
ProfitabilityOperating margin widened to 6.6% in FY2026 from −19.6% in FY2024 (SEC filings).
ValuationOur DCF fair value estimate is $13.72, 159% above the price (cyclical or peak cash flow, so treat with care).
ProfitabilityGross margin widened to 52.6% in FY2026 from 44.7% in FY2024 (SEC filings).
Cash returnsFree cash flow grew 17% over the last 12 months vs the 12 months before.
Top bearish points 5 of 5
Balance sheetOperating income covers interest only 1.3× over the last 12 months.
Cash returnsShare count up 30.0% in a year: existing holders are being diluted.
ValuationP/E of 36.6× vs a 20.7× median for the 341 Consumer Discretionary companies we cover.
GrowthSales shrank 4% a year from FY2023 to FY2026.
RiskReports earnings Nov 5 (consensus EPS $0.27): results can move the price sharply and reset Market Value.
All fundamentals
P/E 36.6 · FCF yield 16.3% · Sales −2%
Valuation
- P/E
- 36.6×Consumer Discretionary median 20.7×
- Price / FCF
- 6.1×
- FCF yield
- 16.3%
- EV / EBITDA
- 11.2×
- Price / sales
- 0.95×
- Price / book
- n/anot reported in its SEC filings
- Market cap
- $2.3Bprice × diluted shares
- Enterprise value
- $2.4B
Growth
- Revenue, 12 months
- $2.4B
- Sales growth, 12 months
- −1.8%vs the 12 months before
- Sales growth, 3 yrs
- −4.4%/yrfrom FY2023
- Diluted EPS, 12 months
- $0.14
- EPS growth, last FY
- n/afewer than two years of diluted EPS
- Net income, 12 months
- $63M
- Net income growth
- n/anot reported in its SEC filings
Profitability
- Gross margin
- 52.6%
- Operating margin
- 6.6%
- Net margin
- 2.6%
- FCF margin
- 15.4%
- Return on equity
- n/anegative shareholder equity
- Return on invested capital
- n/aoperating income, debt, equity or cash not tagged
Balance sheet
- Cash & short-term inv.
- $1.2B
- Total debt
- $1.3B
- Net cash
- −$123M
- Debt / equity
- n/adebt or equity not tagged in SEC data
- Interest coverage
- 1.3×operating income / interest
Cash flow & returns
- Free cash flow, 12 months
- $378M
- FCF growth, 12 months
- +17%
- Dividend yield
- 0%
- Payout ratio
- n/anot reported in its SEC filings
- Buybacks, 12 months
- n/anot reported in its SEC filings
- Share count, 1 year
- +30.0%diluted shares vs a year ago
- Stock-based comp
- $199M
Trailing 12 months to Jun 30, 2026; balance sheet at Jun 30, 2026. From Peloton Interactive’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
The business
FCF $0.3B · Sales 0%
- Free cash flow, 12 months$0.3B
- Free-cash-flow yield16.3%
- Free-cash-flow margin14%
- Gross margin53%
- Operating margin14%
- Return on invested capital76%
- Sales growth (latest quarter vs year-ago quarter)0%
- Net debt / EBITDA2.0×
Chart & levels
Where the price is vs its key levels and trends.
Key levels
Every level vs today’s $5.30
- 52-wk lowlowest close, 1 year$3.71−30.0%
- Market Valueavg paid since Aug 6$5.19−2.1%
- PriceMon Nov 2 close$5.30you are here
- 52-wk highhighest close, 1 year$7.66+44.5%
- Fair value est.base case$13.72+158.9%
Momentum & 52-week range
RSI 53 · 5 days +1.0%
Signals
Reversal signal setups, the public ledger and the next earnings date.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
Next report
Nov 5
- DateThu Nov 5, before the open
- Consensus EPS$0.27
- Year-ago EPS$0.03
- QuarterSep/2026
From Nasdaq’s earnings calendar. A report resets Market Value.
PTON is outside our quality screen
One text when a published rule fires on one of the 332 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.
Voices & buzz
Who is talking about it, and how it compares with peers.
Who’s talking about it
Notable investors, executives, analysts and public figures on Peloton Interactive in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 3, 1:01 PM ET.
Compare with peers
Closest in size in Recreational Games/Products/Toys
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.