Topgolf Callaway Brands (MODG): Is the Recent Slide Creating a Valuation Opportunity?

Topgolf Callaway Brands (MODG) has had an interesting run lately, with shares slipping about 6% over the past month and almost 20% during the past year. Investors appear to be weighing recent results and broader market sentiment as they consider what comes next for the company.

See our latest analysis for Topgolf Callaway Brands.

Recent sharp price drops, including a 15% slide over the past week, suggest sentiment is still fading for Topgolf Callaway Brands. While there has been no single event driving the moves, the 12% one-month share price decline and nearly 20% one-year total shareholder return loss signal that optimism has cooled. Long-term holders are facing significant challenges.

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With shares down nearly 20% over the past year and currently trading about 40% below some analyst estimates, is this a rare value opportunity for Topgolf Callaway Brands, or is the market already reflecting future headwinds?

Most Popular Narrative: 20.1% Undervalued

The most followed narrative sets fair value for Topgolf Callaway Brands nearly 20% higher than its recent close, arguing the market is overlooking key drivers. This view is not just about analyst targets but draws on a deeper look at innovation, margins, and international growth potential.

Ongoing innovation, new golf products, and global expansion are strengthening brand equity, sustaining revenue growth, and capitalizing on the experiential leisure trend. Aggressive discounting, margin pressures, segment and geographic weaknesses, and strategic uncertainty all pose significant risks to sustained growth and profitability.

Read the complete narrative.

Curious what’s fueling such a rich fair value? The narrative hinges on bold assumptions about profit turnaround, operating margin restoration, and the potential for a leisure industry rebound. Discover exactly which key financial moves and modelled trajectory could prove this valuation right or wrong.

Result: Fair Value of $10.5 (UNDERVALUED)

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

However, persistent margin pressures and ongoing leadership transitions could limit Topgolf Callaway Brands's ability to fully realize its projected turnaround.

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

Build Your Own Topgolf Callaway Brands Narrative

If you want to test the assumptions or dig deeper into the numbers yourself, you can create your own perspective in just a few minutes with our tools. Do it your way

A great starting point for your Topgolf Callaway Brands research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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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.

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