• Wondering if Acushnet Holdings at around US$98 per share still offers value, or if most of the opportunity is already reflected in the price.
• The stock has seen mixed shorter term returns, with a 1.9% decline over the last week, 6.4% over the last month, 19.5% year to date, and 59.9% over the last year.
• Recent attention on Acushnet Holdings has centered on its position in golf equipment and apparel and how demand trends in the sport relate to its current share price. Investors are weighing whether the current level reflects expectations around the brand strength and broader consumer interest in golf.
• On Simply Wall St's 6 point valuation checklist, Acushnet Holdings currently scores 2 out of 6. It is therefore worth looking at how different valuation methods line up, and then considering an even more complete way to think about valuation at the end of this article.

Acushnet Holdings scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Acushnet Holdings Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model takes estimates of a company’s future cash flows and discounts them back to today, aiming to convert those future dollars into a single present value per share.

For Acushnet Holdings, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flows in $. The latest twelve month free cash flow is about $116.8 million. Analyst inputs extend out a few years, with Simply Wall St extrapolating further so that free cash flow projections run to 2035. For example, projected free cash flow for 2027 is $241.9 million, and the 2035 projection is $376.7 million, all converted into present values using a discount rate.

Pulling these projections together gives an estimated intrinsic value of about $114.69 per share. Against a current share price around $98, this model output gives an implied discount of roughly 14.5%, which indicates that Acushnet Holdings is trading below this DCF estimate.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Acushnet Holdings is undervalued by 14.5%. Track this in your watchlist or portfolio, or discover 54 more high quality undervalued stocks.

Approach 2: Acushnet Holdings Price vs Earnings

For a profitable company, the P/E ratio is a useful way to think about what you are paying for each dollar of earnings, which is often how the market quickly compares similar businesses.

What counts as a “normal” P/E depends on how fast earnings are expected to grow and how risky those earnings are seen to be. Higher expected growth and lower perceived risk usually support a higher P/E, while slower growth or higher risk tend to mean a lower multiple.

Acushnet Holdings currently trades on a P/E of 30.47x. That sits above the Leisure industry average of 17.68x and below the peer group average of 40.50x. Simply Wall St’s proprietary “Fair Ratio” for Acushnet Holdings is 18.44x. This Fair Ratio is designed to reflect the P/E you might expect given factors such as earnings growth, profit margins, industry, market cap and specific risk profile.

Because the Fair Ratio adjusts for these company specific drivers, it can give a more tailored view than a simple comparison with industry or peers. With the current P/E of 30.47x sitting above the Fair Ratio of 18.44x, the shares appear expensive on this metric.

Result: OVERVALUED

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Upgrade Your Decision Making: Choose your Acushnet Holdings Narrative

Earlier it was mentioned that there is an even better way to think about valuation. Narratives on Simply Wall St give you a simple story for Acushnet Holdings that connects your view of the business to a set of revenue, earnings and margin forecasts, turns those into a Fair Value, then compares that to the current share price to help you consider whether to buy, hold or sell. Because Narratives on the Community page are updated when new news or earnings arrive, you can see, for example, one investor using the higher analyst price target of US$110, building a story around resilient golf demand and premium branding. Another investor may lean toward the US$95 target with a more cautious view on tariffs and participation trends. This allows you to quickly see which version of the future you agree with and what that implies for your own Fair Value versus price view.

Do you think there's more to the story for Acushnet 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.