Acushnet Holdings (GOLF:NYS) Fundamental Valuation Report

Acushnet Holdings (GOLF:NYS) Fundamental Valuation Report

Fundamental Valuation Report

Acushnet Holdings(GOLF:NYS)

Consumer Cyclical:Leisure

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$43.30 (USD) 04/29/2021

Weighted Valuation
$47.00 (USD)

Overall Rating
Undervalued by 8.5%

Valuation Models Discounted Cash Flow: $44.47 (USD)
Comparables: $53.14 (USD)
Valuation Methods This company is:
Cash Flow: Fairly valued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Overvalued on an Asset Valuation
According to Analyst consensus at $47.00 this stock is Undervalued

Company Overview (GOLF:NYS USD)

Price 43.30
Range 43.11 – 43.68
52 week 26.52 – 47.15
Open 43.43
Vol / Avg. 73985/183577
Mkt cap 3.21B
P/E 33.83
Div/yield 0.62/0.01
EPS 1.28
Shares 74.06M
Beta 0.00

Company Description

Acushnet Holdings Corp is a US-based company engaged in the design, development, manufacture, and distribution of golf products. Its product category includes golf balls, golf shoes, golf clubs, wedges, putters, golf gloves, golf gear and golf wear, of which key revenue is derived from the sales of golf balls and golf gloves. The operating segments of the company are Titleist golf balls, Titleist golf clubs, Titleist golf gear and FootJoy golf wear. The company operates in the United States, EMEA, Japan, Korea and other countries, of which a majority of the revenue is generated from the operations in the United States.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for GOLF:NYS

Using a discounted cash flow model we generated an intrinsic value of $44.47 (USD) for GOLF:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

GOLF:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $44.47 1% 5% 1% 5%
WACC (or Ke) 6.81 $55.57 $37.06
Terminal Growth Rate 1.80 $37.65 $54.70
Tax Rate 0.12 $47.63 $41.31
Cash Flow 266,003,570 $41.45 $47.49
Capital Expenditures -25,690,400 $44.21 $44.73
Long Term Debt 0 $44.47 $44.47

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $53.14 (USD) for GOLF:NYS. We also generated a valuation of $43.22 (USD) using other metrics and comparables.
The comparable companies were Funko (FNKO:NAS), Planet Fitness (PLNT:NYS), Vista Outdoor (VSTO:NYS), Sportsman’s Warehouse (SPWH:NAS) and SeaWorld Entertainment (SEAS:NYS).

Company GOLF:NYS End Date Value
Earnings/Share $1.28 (USD)
Book Value/Share $13.29 (USD)
Sales/Share $21.48 (USD)
Cash Flow/Share $3.52 (USD)
EBITDA/Share $2.28 (USD)
Price Based on Comps Adjustment Factor (%)
$103.35 (USD) -22.6
$49.35 (USD) -65.3
$125.19 (USD) -30.8
$15.03 (USD) 0.0
$65.61 (USD) 2.2
GOLF:NYS Ratios Used Average Values FNKO:NAS PLNT:NYS VSTO:NYS SPWH:NAS SEAS:NYS
33.83 PE Ratio 80.74 197.00 0.00 36.69 8.54 0.00
3.26 PB Ratio 3.72 4.46 0.00 2.92 3.76 0.00
2.02 PS Ratio 5.83 1.19 16.58 0.95 0.54 9.89
12.29 PCF Ratio 58.26 7.23 216.45 6.09 3.27 0.00
19.79 EV to EBITDA 28.75 18.64 72.13 17.55 6.69 0.00

Multiples

Using a multiples approach we generated a valuation of  $32.66 (USD) for GOLF:NYS

Company GOLF:NYS End Date Value
Earnings/Share $1.28 (USD)
Book Value/Share $13.29 (USD)
Sales/Share $21.48 (USD)
Cash Flow/Share $3.52 (USD)
EBITDA/Share $2.28 (USD)
Price Based on Comps Adjustment Factor
$30.52 (USD) 0
$30.25 (USD) 0
$24.68 (USD) 0
$51.88 (USD) 0
$25.96 (USD) 0
Ratios Ratio Average
PE Ratio 23.84
PB Ratio 2.28
PS Ratio 1.15
PCF Ratio 14.73
EV to EBITDA 11.38

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  GOLF:NYS for the last 5 years was  2.28

We ran the Adjusted Book Value for  GOLF:NYS and generated a book value of  $13.30 (USD)
By multiplying these we get an adjusted valuation of  $30.28 (USD)

Analyst Data

In the Stockcalc database there are 2 analysts that provide a valuation for GOLF:NYS. The 2 analysts have a concensus valuation for GOLF:NYS for 2021 of $47.00 (USD).

GOLF:NYS Acushnet Holdings

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
1 1 0 4.0000 Outperform 2021-4-28

Current Price: 43.3 USD

Analyst Consensus
USD Millions 2021 2022
Mean EPS 1.74 1.72
# EPS Analysts 2 1
Mean Revenue 1,726.30 1,720.00
# Revenue Analysts 2 1
Mean Target Price 47.00
Mean Cash Flow
Mean EBITDA 262.40
Mean Net Income 130.50 129.00
Mean Debt Outstanding
Mean Tax Rate 22.00
Mean Growth Rate
Mean Capital Expenditure

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

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