Callaway Golf manufactures and sells golf clubs and golf balls, and sells golf accessories, under the Callaway Golf and Odyssey brands worldwide. The company was founded in 1982 and is based in Carlsbad, California.
ELY Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Callaway Golf Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Callaway Golf Co ranked in the 34th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for ELY, they are:
In the past 5.57 years, Callaway Golf Co has a compound free cash flow growth rate of 0.16%; that's higher than 64.41% of free cash flow generating stocks in the Consumer Cyclical sector.
The business' balance sheet reveals debt to be 45% of the company's capital (with equity being the remaining amount). Approximately 62.61% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Callaway Golf Co's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 20.65% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Callaway Golf Co? See BOOT, CHH, CZR, DLX, and NYT.