Swatch Group (SWX:UHR): Assessing Valuation as Shares Rally on Renewed Optimism

Swatch Group (SWX:UHR) shares have seen a steady climb this month, catching the attention of investors tracking European consumer stocks. The company appears to be gaining ground as sentiment around luxury goods stabilizes in international markets.

See our latest analysis for Swatch Group.

Momentum has clearly picked up for Swatch Group, with a 12.67% jump in the share price over the past month and a strong 15.2% total shareholder return in the last year. This signals renewed optimism after a tougher multi-year stretch.

If the recent turnaround in luxury stocks has you interested, it could be a good time to broaden your search and discover fast growing stocks with high insider ownership

But with shares rallying so strongly in recent weeks, investors must now ask whether Swatch Group is trading at a bargain or if future growth is already reflected in the current price. Is there still a real buying opportunity here?

Price-to-Sales Ratio of 1.5x: Is it justified?

Swatch Group is trading at a price-to-sales ratio of 1.5x, which reflects how much investors are willing to pay for each unit of revenue earned by the company. At the last close price of CHF177.85, this places Swatch Group between peers and market expectations in the luxury goods sector.

The price-to-sales (P/S) ratio measures the market value of a company relative to its sales. For the luxury industry, revenue growth is key, as premium brands often command higher valuation multiples due to their pricing power and global reach.

With a P/S of 1.5x, Swatch Group trades below the peer average (3.2x) but above both the industry average (0.8x) and its own estimated fair Price-to-Sales ratio (2.3x). This suggests the market is discounting Swatch Group’s sales growth potential below sector leaders but above more cautious industry views. If sentiment improves, the P/S ratio could move closer to the fair value level seen in the model.

Explore the SWS fair ratio for Swatch Group

Result: Price-to-Sales of 1.5x (ABOUT RIGHT)

However, weaker analyst price targets and significant recent volatility could signal caution if company performance does not continue to improve as expected.

Find out about the key risks to this Swatch Group narrative.

Another View: Discounted Cash Flow Sends a Different Signal

While the price-to-sales ratio hints Swatch Group could be fairly valued, our DCF model reaches a different conclusion. The SWS DCF model estimates a fair value of CHF66.64, which is much lower than the current market price. Could this be a sign the market is too optimistic about Swatch’s future?

Story Continues

Look into how the SWS DCF model arrives at its fair value.UHR Discounted Cash Flow as at Nov 2025

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Swatch Group for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 865 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Swatch Group Narrative

If you have a different take or want to dig deeper into the numbers yourself, you can build your own perspective in just a few minutes, Do it your way

A great starting point for your Swatch Group research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include UHR.SW.

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