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Callaway Golf (CALY) Could Be 14% Undervalued On Raised 2026 Guidance

Simply Wall St · 1d ago

Why Callaway Golf Stock Is Back in Focus After Q2 2026

Callaway Golf (CALY) moved into the spotlight after raising its full-year 2026 net sales guidance and adjusted EBITDA outlook, following Q2 results that showed higher sales, net income, and share repurchases.

See our latest analysis for Callaway Golf.

At a share price of $17.59, Callaway Golf has a year to date share price return of 50.09%, with shorter term moves more mixed. The 1 year total shareholder return of 104.53% contrasts with a weaker 5 year total shareholder return that declined 40.01%.

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After a 50% year to date share price move and upgraded guidance, Callaway Golf now sits closer to analyst targets and its estimated intrinsic value. Does the current set up still reward new buyers, or lean toward profit taking?

Most Popular Narrative: 14.2% Undervalued

Compared with the last close at $17.59, the most followed narrative pegs Callaway Golf’s fair value at $20.50, using a detailed cash flow and earnings roadmap.

Ongoing international expansion and new venue openings are adding to the recurring and predictable revenue base, which plays directly into the global trend of rising participation in experiential leisure activities and underpins longer-term earnings and cash flow growth.

Read the complete narrative.

Curious how this fair value hangs together? The story relies on a specific revenue trajectory, a step change in margins, and a future earnings multiple that must all align. The narrative connects those elements in a way the current share price does not fully reflect.

Result: Fair Value of $20.50 (UNDERVALUED)

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

However, Callaway Golf’s story can shift quickly if traffic relies too heavily on discounting or if tariff and cost pressures squeeze already thin margins.

Find out about the key risks to this Callaway Golf narrative.

Another View on Callaway Golf’s Valuation

The earlier fair value story for Callaway Golf leans heavily on cash flows and earnings forecasts. The preferred P/E view presents a different angle. CALY trades at 38.5x earnings, which is below the peer average of 42.4x, yet well above the Global Leisure industry at 18.4x and its own fair ratio of 28.8x. That mix suggests some valuation support versus close peers, but also meaningful downside risk if the market moves closer to the broader industry or the fair ratio. Which anchor do you rely on more when the next set of results is released?

See what the numbers say about this price — find out in our valuation breakdown.

NYSE:CALY P/E Ratio as at Aug 2026
NYSE:CALY P/E Ratio as at Aug 2026

Next Steps

Feeling torn between the optimism and the caution around Callaway Golf right now is reasonable. Move quickly, review the numbers, and weigh 2 key rewards and 1 important warning sign

Looking For More Ideas Beyond Callaway Golf?

If Callaway Golf has sharpened your interest, do not stop here. Use the Simply Wall St screener to spot fresh opportunities before they move out of reach.

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.