Event-driven snapshot of Wolverine World Wide

Wolverine World Wide (WWW) has drawn investor attention after recent share price swings, with the stock up around 10% over the past month but showing a decline across the past 3 months.

At a share price of $19.28, Wolverine World Wide’s recent 10.05% 1 month share price return contrasts with its 26.24% 3 month share price decline and a 12.41% 1 year total shareholder return loss, suggesting recovering momentum after a weaker stretch.

If you are reassessing your positioning in footwear and apparel, this can be a good moment to widen the lens and look at auto manufacturers as another set of consumer facing businesses tied to global spending trends.

With Wolverine World Wide trading at $19.28 and indications of a discount to some value estimates, the key question for you is simple: is this a genuine mispricing, or is the market already factoring in future growth?

Most Popular Narrative: 17.8% Undervalued

Compared with Wolverine World Wide’s last close at $19.28, the most followed narrative points to a fair value of $23.44, based on a discounted cash flow approach using a 10.19% discount rate.

Wolverine is capitalizing on growing demand for branded footwear globally by expanding Saucony and Merrell into new international markets and activating key cities (e.g., Tokyo, Paris, London). This is expected to boost revenue growth and diversify geographic exposure.

The company is executing a digital transformation by prioritizing direct-to-consumer (DTC) channels, enhancing digital experiences, and launching branded apps (e.g., Sweaty Betty in the UK). The goal is to drive higher-margin sales and improve earnings quality.

Want to understand why this valuation points higher than today’s price? The narrative leans heavily on future earnings, margin expansion and a different profit multiple than the market is using right now. Curious which assumptions really move that $23.44 number?

Result: Fair Value of $23.44 (UNDERVALUED)

However, you still need to weigh tariff pressure that could squeeze margins, as well as slower growth in brands like Merrell, Saucony and Sweaty Betty if demand softens further.

Another View: What The Market Is Paying Today

While our DCF model suggests Wolverine World Wide is trading below an estimated future cash flow value of $29.66, the current P/E of 18.1x is slightly above the fair ratio of 17.7x. That gap points to some valuation risk if earnings or sentiment slip from here.

Build Your Own Wolverine World Wide Narrative

If you look at the numbers and reach a different conclusion, or simply prefer to work from your own assumptions, you can build a custom view in just a few minutes using Do it your way.

A great starting point for your Wolverine World Wide research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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.