Is Brunswick Corp. overvalued or undervalued?

Jun 25 2025 08:02 AM IST
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As of May 3, 2024, Brunswick Corp. is considered very expensive with a P/E ratio of 24, significantly higher than its peers, and has underperformed the S&P 500, indicating it is overvalued despite a decent ROE of 11.24%.
As of 3 May 2024, Brunswick Corp. has moved from an expensive to a very expensive valuation grade. The company is currently overvalued based on its financial metrics, with a P/E ratio of 24, a Price to Book Value of 2.74, and an EV to EBITDA of 11.36. In comparison to its peers, Brunswick's P/E ratio is significantly higher than Aptiv Plc at 7.26 and Autoliv, Inc. at 15.26, indicating a premium valuation that is not justified by its earnings potential.

The company's return on equity (ROE) stands at 11.24%, which is relatively decent, but when juxtaposed with the valuation metrics, it suggests that investors are paying too much for each dollar of earnings. Additionally, Brunswick's stock has underperformed the S&P 500 over various time frames, including a 1-year return of -24.13% compared to the S&P 500's 10.26%, further reinforcing the notion that the stock is overvalued in the current market environment.
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