Is Topgolf Callaway Brands Corp. overvalued or undervalued?

As of 12 November 2024, the valuation grade for Topgolf Callaway Brands Corp. has moved from expensive to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 0.49, an EV to EBITDA ratio of 5.05, and an EV to Sales ratio of 0.58. In comparison to peers, Hasbro, Inc. has a significantly higher P/E ratio of 32.83, while Mattel, Inc. stands at a more reasonable 13.72, highlighting the relative risk associated with Topgolf Callaway.
The company's performance has been lackluster, with a one-year return of -10.38%, significantly underperforming the S&P 500's return of 17.14% over the same period. Furthermore, the three-year return of -56.08% starkly contrasts with the S&P 500's impressive 70.41% return, reinforcing the notion that Topgolf Callaway is currently overvalued in the market.