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Assessing Topgolf Callaway Brands (MODG) Valuation After Its Recent 90 Day Share Price Rebound

Simply Wall St · 01/05 12:18

Topgolf Callaway Brands (MODG) is back on many screens after a recent move in the share price, prompting investors to reassess how its mix of golf venues, equipment, and lifestyle brands is currently valued.

See our latest analysis for Topgolf Callaway Brands.

At a share price of $11.72, Topgolf Callaway Brands has seen 1 day and 30 day share price returns that are relatively muted compared with a much stronger 90 day share price return of 28.37%. The 1 year total shareholder return of 29.50% contrasts with weaker 3 and 5 year total shareholder returns, which suggests that recent momentum has picked up after a tougher multi year stretch.

If this rebound has you thinking beyond one stock, it could be a good moment to scan the market for fast growing stocks with high insider ownership and see what else fits your style.

With Topgolf Callaway trading at $11.72, sitting close to analyst targets and following a sharp 90-day rebound, investors now face a decision: is this still an overlooked value story, or is the market already pricing in future growth?

Most Popular Narrative Narrative: 6.2% Undervalued

With a fair value estimate of $12.50 against the last close at $11.72, the prevailing narrative sees modest upside built into Topgolf Callaway Brands.

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 flat revenue path, a sharp margin swing, and a relatively low future earnings multiple can still support a higher value? The key is how those moving parts stack over time.

Result: Fair Value of $12.50 (UNDERVALUED)

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

However, that story can be challenged if discount driven Topgolf traffic continues to weigh on same venue sales, or if tariff and cost pressures squeeze already thin margins.

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

Build Your Own Topgolf Callaway Brands Narrative

If this view does not quite fit how you see the company, you can weigh the same data, build your own story, and Do it your way in a few minutes.

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

Looking for more investment ideas?

If you stop at one story, you could miss others that fit your goals even better. Use the Simply Wall St Screener to line up your next candidates.

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.