Topgolf Callaway Brands Corp.

NYSE:MODG Stock Report

Market Cap: US$1.6b

Topgolf Callaway Brands Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: MODG ($8.15) is trading above our estimate of fair value ($1.46)

Significantly Below Fair Value: MODG is trading above our estimate of fair value.


Key Valuation Metric

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

Key metric: As MODG is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for MODG. This is calculated by dividing MODG's market cap by their current revenue.
What is MODG's PS Ratio?
PS Ratio0.4x
SalesUS$4.21b
Market CapUS$1.56b

Price to Sales Ratio vs Peers

How does MODG's PS Ratio compare to its peers?

The above table shows the PS ratio for MODG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.1x
YETI YETI Holdings
1.8x6.9%US$3.2b
VSTO Vista Outdoor
1x2.4%US$2.6b
MBUU Malibu Boats
1.1x9.1%US$795.5m
PII Polaris
0.5x-0.2%US$3.7b
MODG Topgolf Callaway Brands
0.4x4.1%US$1.6b

Price-To-Sales vs Peers: MODG is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (1.1x).


Price to Sales Ratio vs Industry

How does MODG's PS Ratio compare vs other companies in the US Leisure Industry?

2 CompaniesPrice / SalesEstimated GrowthMarket Cap
DTC Solo Brands
0.1x3.8%US$95.34m
BFXX.Q BowFlex
0.00003xn/aUS$3.64k
No more companies available in this PS range
MODG 0.4xIndustry Avg. 1.0xNo. of Companies6PS00.61.21.82.43+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: MODG is good value based on its Price-To-Sales Ratio (0.4x) compared to the US Leisure industry average (1x).


Price to Sales Ratio vs Fair Ratio

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

MODG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ratio0.7x

Price-To-Sales vs Fair Ratio: MODG is good value based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (0.7x).


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 MODG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$8.15
US$14.79
+81.5%
52.2%US$38.00US$9.50n/a11
Nov ’25US$9.79
US$15.32
+56.5%
45.1%US$38.00US$10.00n/a13
Oct ’25US$10.68
US$15.78
+47.8%
43.5%US$38.00US$10.00n/a13
Sep ’25US$10.06
US$16.09
+60.0%
41.5%US$38.00US$10.00n/a13
Aug ’25US$15.50
US$20.24
+30.6%
41.0%US$40.00US$11.00n/a14
Jul ’25US$15.00
US$20.73
+38.2%
40.6%US$40.00US$11.00n/a13
Jun ’25US$15.65
US$20.45
+30.6%
40.0%US$40.00US$11.00n/a14
May ’25US$15.86
US$19.80
+24.9%
43.0%US$40.00US$10.00n/a14
Apr ’25US$16.47
US$18.25
+10.8%
39.0%US$40.00US$10.00n/a13
Mar ’25US$14.30
US$18.25
+27.6%
39.0%US$40.00US$10.00n/a13
Feb ’25US$13.68
US$17.70
+29.4%
44.4%US$43.00US$9.00n/a14
Jan ’25US$14.34
US$17.55
+22.4%
45.0%US$43.00US$10.00n/a14
Dec ’24US$13.07
US$18.11
+38.5%
44.7%US$43.00US$10.00n/a14
Nov ’24US$11.78
US$26.21
+122.5%
37.5%US$56.00US$12.50US$9.7914
Oct ’24US$13.84
US$26.50
+91.5%
36.4%US$56.00US$12.50US$10.6814
Sep ’24US$17.41
US$29.54
+69.7%
31.2%US$56.00US$16.00US$10.0613
Aug ’24US$19.86
US$32.38
+63.1%
25.2%US$56.00US$18.00US$15.5013
Jul ’24US$19.85
US$32.08
+61.6%
26.1%US$56.00US$18.00US$15.0013
Jun ’24US$17.44
US$32.08
+83.9%
26.1%US$56.00US$18.00US$15.6513
May ’24US$21.95
US$33.69
+53.5%
22.6%US$56.00US$23.00US$15.8613
Apr ’24US$21.62
US$34.08
+57.6%
23.2%US$56.00US$21.00US$16.4712
Mar ’24US$23.41
US$34.08
+45.6%
23.2%US$56.00US$21.00US$14.3012
Feb ’24US$24.95
US$33.33
+33.6%
24.9%US$56.00US$21.00US$13.6812
Jan ’24US$19.75
US$33.33
+68.8%
24.8%US$56.00US$22.00US$14.3412
Dec ’23US$21.50
US$33.33
+55.0%
24.8%US$56.00US$22.00US$13.0712
Nov ’23US$18.76
US$34.17
+82.1%
25.3%US$55.00US$21.00US$11.7812

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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