Does Spectrum Brands Still Offer Value After Strategic Reshaping and Mixed 2025 Share Performance?

• If you have been wondering whether Spectrum Brands Holdings is a bargain or a value trap at today’s price, you are not alone. That is exactly what we are going to unpack here.
• The stock has slipped 1.8% over the last week but is up 7.7% over the past month, even though it is still down 29.9% year to date and 36.6% over the last 12 months.
• Those mixed returns are arriving after a period of strategic reshaping, including asset sales and portfolio refocusing that have changed how investors think about Spectrum’s future cash flows and risk profile. At the same time, shifting consumer demand and a more cautious macro backdrop have kept sentiment in check, creating a tug of war between optimism and skepticism in the share price.
• Despite that push and pull, Spectrum currently scores a 6/6 valuation check rating, suggesting the market may be underappreciating its fundamentals. We will walk through the main valuation approaches that point to this, before closing with a more intuitive way to bring those numbers together at the end of the article.

Find out why Spectrum Brands Holdings's -36.6% return over the last year is lagging behind its peers.

Approach 1: Spectrum Brands Holdings Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model estimates what a company is worth by projecting the cash it can generate in the future and discounting those cash flows back to today’s dollars. For Spectrum Brands Holdings, the model uses a 2 Stage Free Cash Flow to Equity approach, starting from current Free Cash Flow of about $157.9 million and building out analyst forecasts and longer term estimates.

Analysts expect Free Cash Flow to rise to around $248 million by 2030, with intermediate projections stepping up from roughly $170 million in 2026 to $213 million in 2028 and $230 million in 2029. Beyond the explicit analyst horizon, Simply Wall St extrapolates more moderate growth to reflect a maturing business profile. When all those projected cash flows are discounted back to today and summed, the model arrives at an intrinsic value of approximately $262.72 per share.

Compared with the current share price, this DCF implies the stock is about 77.7% undervalued. This indicates that, within the assumptions of the model, the market is applying a substantial discount to Spectrum’s future cash generation.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Spectrum Brands Holdings is undervalued by 77.7%. Track this in your watchlist or portfolio, or discover 908 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Spectrum Brands Holdings.

Approach 2: Spectrum Brands Holdings Price vs Earnings

For a profitable company like Spectrum Brands Holdings, the Price to Earnings (PE) ratio is a useful way to gauge what investors are willing to pay today for each dollar of current earnings. In general, faster growing and lower risk businesses tend to trade on higher PE ratios, while slower growth or higher uncertainty is often associated with lower multiples.

Spectrum currently trades on a PE of about 13.7x, which is below both the Household Products industry average of roughly 17.4x and the peer group average of around 15.8x. Simply Wall St also calculates a proprietary Fair Ratio of 14.8x for Spectrum, which reflects its specific mix of earnings growth prospects, profit margins, industry positioning, market cap and risk profile.

Because the Fair Ratio explicitly adjusts for these company level factors, it provides a more tailored benchmark than a simple comparison with peers or the broader industry, which may have very different growth or risk characteristics. With Spectrum’s actual PE sitting meaningfully below its 14.8x Fair Ratio, the multiple based view points to the shares being undervalued relative to current earnings power.

Result: UNDERVALUED

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Upgrade Your Decision Making: Choose your Spectrum Brands Holdings Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple way to connect your view of Spectrum Brands Holdings’ future with a concrete forecast and fair value. You describe the story you believe in, set your own expectations for revenue, earnings and margins, and then see how that flows through to a valuation you can compare directly with today’s share price. Narratives live inside Simply Wall St’s Community page, where millions of investors use them as an accessible tool to decide whether to buy, hold or sell by checking if their Fair Value sits above or below the current market Price. Those Narratives automatically update as new information such as earnings and news arrives. For example, one Spectrum Brands Holdings Narrative might assume pet care expansion, cost savings and steady demand support a higher fair value closer to the most bullish analyst target of about 95 dollars, while a more cautious Narrative might focus on trade risks, competition and softer consumer spending to arrive near the 60 dollar bearish target instead.

Do you think there's more to the story for Spectrum Brands Holdings? Head over to our Community to see what others are saying!

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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