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Assessing Topgolf Callaway (MODG) Valuation After Its Recent Share Price Rebound

Simply Wall St · 1d ago

Topgolf Callaway Brands (MODG) has quietly put together an interesting stretch of returns, with the stock up about 14% over the past month and roughly 26% over the past 3 months.

See our latest analysis for Topgolf Callaway Brands.

That recent burst in the share price, with a roughly 30% year to date share price return and a 60% one year total shareholder return, suggests momentum is rebuilding even after a tough multi year stretch.

If Topgolf Callaway’s rebound has caught your eye, this could be a good moment to see what else is moving and explore fast growing stocks with high insider ownership.

With shares still trading below analyst targets despite a powerful rebound, investors now face a key question: is Topgolf Callaway undervalued with more upside to come, or is the market already pricing in its future growth?

Most Popular Narrative Narrative: 6.6% Undervalued

With Topgolf Callaway Brands last closing at $11.68 against a narrative fair value of $12.50, the current share price sits modestly below that modeled estimate. This frames the upside case as one built on execution rather than speculation.

The analysts have a consensus price target of $10.5 for Topgolf Callaway Brands based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $13.0, and the most bearish reporting a price target of just $9.0.

Read the complete narrative.

Curious how a company with shrinking top line assumptions can still command a higher fair value, powered by future margin gains and a re rated profit multiple? The narrative leans on a dramatic swing from deep losses to solid earnings, then discounts those cash flows at a precise hurdle rate to land on that target. Want to see the exact profitability bridge and valuation math behind this call?

Result: Fair Value of $12.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, lingering questions around discount driven Topgolf traffic and renewed tariff headwinds could still cap margin progress and delay any sustained re-rating.

Find out about the key risks to this Topgolf Callaway Brands narrative.

Build Your Own Topgolf Callaway Brands Narrative

If you see things differently or want to dig into the numbers yourself, you can build a personalized view of Topgolf Callaway in just a few minutes, Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Topgolf Callaway Brands.

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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.