Callaway Golf Company

Valuation Analysis

About the Company

Callaway Golf Company designs, manufactures, and sells golf equipment, golf and lifestyle apparel, and other accessories in the United States, Europe, Asia, and Internationally. It operates in two business segments: Golf Equipment; and Apparel, Gear and Other. The company provides drivers, fairway woods, hybrids, irons, and wedges under the Callaway brands; packaged sets under the Callaway and Strata brands; and putters under Odyssey brand. It designs, manufactures, and sells golf clubs, golf balls, apparel, bags, and other accessories under TravisMathew and OGIO brand. It sells its products through golf retailers, sporting goods retailers, online retailers, mass merchants, department stores, third-party distributors, and merchants, and directly to consumers through its retail stores and w

Callaway Golf Company Stock at a Glance

Callaway Golf Company (CALY) is currently trading at $17.38 with a market capitalization of $3.1B. The trailing P/E ratio stands at 66.85x, with a forward P/E of 22.69x. The 52-week range spans from $7.73 to $18.00; the current price is 3.4% below the yearly high. Year-over-year revenue growth stands at +9.2%.

💰 Dividend

Callaway Golf Company currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

10 analysts rate Callaway Golf Company (CALY) on consensus: Buy. The average price target is $18.20, implying +4.72% from the current price. Analyst price targets range from $15.00 to $23.00.

Callaway Golf Company: The Investment Case in Detail

Callaway Golf Company (CALY) operates in the Consumer Cyclical — specifically Leisure — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Earnings growth of 2402.6% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. The combination of a 43% gross margin and 20.1% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat.

The Bear Case

Net margins remain negative, meaning every euro of revenue is still producing losses — the path to profitability is the central question for shareholders. A trailing P/E above 50 combined with revenue growth below 20% is a dangerous combination — the market is paying a steep growth multiple for what is, by the data, only moderately fast expansion. Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

With a PEG ratio of 0.72, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity.

What to Watch Next

• The forward P/E of 22.69x is meaningfully below the trailing 66.85x — analysts expect earnings to step up; the next earnings release is the test.
• The share is trading at 94% of its 52-week range — a break above the recent high opens technical upside, a failure here often invites profit-taking.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior.

Trading Data

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