Smith & Wesson Brands, Inc.

NasdaqGS:SWBI Stock Report

Market Cap: US$802.5m

Smith & Wesson Brands Valuation

Is SWBI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SWBI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SWBI ($17.36) is trading below our estimate of fair value ($19.81)

Significantly Below Fair Value: SWBI is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for SWBI?

Other financial metrics that can be useful for relative valuation.

SWBI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.6x
Enterprise Value/EBITDA10.7x
PEG Ratio0.5x

Price to Earnings Ratio vs Peers

How does SWBI's PE Ratio compare to its peers?

The above table shows the PE ratio for SWBI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16x
RGR Sturm Ruger
16.9xn/aUS$816.6m
MBUU Malibu Boats
13.7x19.9%US$859.1m
JOUT Johnson Outdoors
26.7x49.9%US$466.1m
MCFT MasterCraft Boat Holdings
6.9x-26.6%US$388.5m
SWBI Smith & Wesson Brands
30x63.3%US$802.5m

Price-To-Earnings vs Peers: SWBI is expensive based on its Price-To-Earnings Ratio (30x) compared to the peer average (16x).


Price to Earnings Ratio vs Industry

How does SWBI's PE Ratio compare vs other companies in the Global Leisure Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a27.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a27.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: SWBI is expensive based on its Price-To-Earnings Ratio (30x) compared to the Global Leisure industry average (16.4x).


Price to Earnings Ratio vs Fair Ratio

What is SWBI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SWBI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio30x
Fair PE Ratio42x

Price-To-Earnings vs Fair Ratio: SWBI is good value based on its Price-To-Earnings Ratio (30x) compared to the estimated Fair Price-To-Earnings Ratio (42x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SWBI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$17.36
US$18.00
+3.7%
9.1%US$20.00US$16.00n/a3
Mar ’25US$13.56
US$16.17
+19.2%
16.8%US$20.00US$14.00n/a3
Feb ’25US$13.38
US$16.17
+20.8%
16.8%US$20.00US$14.00n/a3
Jan ’25US$13.56
US$16.17
+19.2%
16.8%US$20.00US$14.00n/a3
Dec ’24US$13.91
US$15.17
+9.0%
22.9%US$20.00US$12.00n/a3
Nov ’24US$14.61
US$15.17
+3.8%
22.9%US$20.00US$12.00n/a3
Oct ’24US$12.91
US$15.17
+17.5%
22.9%US$20.00US$12.00n/a3
Sep ’24US$11.71
US$15.17
+29.5%
22.9%US$20.00US$12.00n/a3
Aug ’24US$12.60
US$15.17
+20.4%
22.9%US$20.00US$12.00n/a3
Jul ’24US$13.04
US$15.17
+16.3%
22.9%US$20.00US$12.00n/a3
Jun ’24US$11.61
US$15.17
+30.6%
22.9%US$20.00US$12.00n/a3
May ’24US$12.08
US$15.17
+25.6%
22.9%US$20.00US$12.00n/a3
Apr ’24US$12.31
US$15.17
+23.2%
22.9%US$20.00US$12.00n/a3
Mar ’24US$10.70
US$15.17
+41.7%
22.9%US$20.00US$12.00US$13.563
Feb ’24US$11.25
US$15.17
+34.8%
22.9%US$20.00US$12.00US$13.383
Jan ’24US$8.68
US$15.17
+74.7%
22.9%US$20.00US$12.00US$13.563
Dec ’23US$12.15
US$21.00
+72.8%
17.8%US$26.00US$17.00US$13.913
Nov ’23US$11.43
US$21.00
+83.7%
17.8%US$26.00US$17.00US$14.613
Oct ’23US$10.37
US$21.00
+102.5%
17.8%US$26.00US$17.00US$12.913
Sep ’23US$13.74
US$21.00
+52.8%
17.8%US$26.00US$17.00US$11.713
Aug ’23US$14.43
US$21.00
+45.5%
17.8%US$26.00US$17.00US$12.603
Jul ’23US$13.52
US$21.00
+55.3%
17.8%US$26.00US$17.00US$13.043
Jun ’23US$15.03
US$21.67
+44.2%
21.4%US$28.00US$17.00US$11.613
May ’23US$13.73
US$21.67
+57.8%
21.4%US$28.00US$17.00US$12.083
Apr ’23US$15.43
US$21.67
+40.4%
21.4%US$28.00US$17.00US$12.313
Mar ’23US$17.51
US$29.00
+65.6%
25.3%US$38.00US$20.00US$10.703

Analyst Forecast: Target price is less than 20% higher than the current share price.


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