2 models fit Callaway Golf Company Common Stock and they disagree: 0 of 2 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
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Valued as a cyclical company: P/E comparison, EV/EBITDA comparison, Discounted cash flow, and Graham number.
ACCE opinionCallaway Golf Company Common Stock (CALY)
Fair value (2 models)
$10.41
ACCE price target
$13.70
Rating
Overvalued
Horizon
12 months
Fair value published on 18 Oct 2026, 15:05 CEST; previously $10.20 since 14 Oct 2026, 00:00 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Rating published on 18 Oct 2026, 15:05 CEST.
Price used: $14.13 at the close on 23 Oct 2026, 22:00 CEST.
Models: P/E comparison and Graham number.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
35.7% above
-26.3% to fair value
ACCE score
61
out of 100
Analysts
45% buy
11 covering
P/E
16.2x
forward 15.9x
1-year return
+41.3%
Dividend yield
0.00%
Callaway Golf Company Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Callaway makes golf clubs, balls and apparel under the Callaway, Topflite and Odyssey brands, with its premium driver and iron lines sold through pro shops, retailers and direct channels. The gross margin of 44.3% and operating margin of 17.3% reflect a brand that still commands pricing power in a category where many competitors compete on discounting. Revenue growth of 2.0% is modest, so the investment case rests on margin durability and whether new product cycles can lift volumes in a cyclical leisure market. At 16.1x trailing and 18.9x forward earnings, the stock screens as a mid-cap with no index membership, and a 3.5% ROE says the balance sheet and capital base are not generating much return yet. The score of 60/100 suggests it merits a closer look at product cycle timing and inventory trends before any conviction is formed.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Score down sharply
ACCE score fell 13 points in 90 days, from 70 to 57, with the Momentum sub-score at 46 and Quality at 50. The deterioration is recent and broad.
moderate
Trades above model fair value
The stock trades 35.7% above the model fair value of $10.41, while sitting at roughly the ACCE price target of $13.70. Little margin of safety remains on the model.
moderate
Thin returns on equity
Return on equity is just 3.5% and net margin is -12.4%, despite 17.3% operating margin and 262.1% YoY earnings growth. The gap suggests heavy below-the-line costs that the headline earnings figure hides.
AI research notes
AI-assisted·How I use AIWritten Oct 19, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Free cash flow over the last twelve months reached $301M, and the stock's free cash flow yield stands at 12.2%.
Analysts' mean price target sits at $20.40, which is 48.4% above the current share price.
Callaway beat earnings expectations last quarter, with earnings per share of 0.39 against 0.35 expected, a surprise of 11.4%.
Why it could disappoint
Net margin is -12.4% and return on equity is only 3.5%, so the business is not yet earning a healthy return on its capital.
The consensus model fair value of $10.41 sits 35.7% below the current price, and only 2 of 4 valuation models feed that consensus.
Revenue grew just 2.0% year over year, below the 5.3% average annual growth of the last five years, while shares outstanding rose 1.1%.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 5, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where CALY's valuation models land
Price
$14.13
Model fair value
$10.41
Model range
$7.38 to $13.44
Fair value $10.41
Price $14.13
The price is above the whole model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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+Conviction breakdown and growth / value / quality / momentum scores