Acushnet Holdings Corp. (GOLF): what the price requires

At today's price, Acushnet Holdings Corp. (GOLF) is priced for +19.5% growth. boothcheck doesn't publish a fair value or a price target; it shows what the price assumes, so you can judge whether that bar is too high.

Generated: 2026-07-19 · Source: https://boothcheck.com/report/GOLF

Headline

FieldValue
TickerGOLF
CompanyAcushnet Holdings Corp.
Current price$110.00/sh
CompositionTitleist Golf Equipment 62% / FootJoy Golf Wear 22% / Golf Gear 10% / Other 6%

What The Price Requires (Inversion)

The assumption today's price embeds, recovered by inverting the valuation.

FieldValue
Inversion basiswhole-company
Implied growth19.5%
Multiple paid26x operating income

Solve inputs: computed at a 8.6% cost of capital with 4% terminal growth over a 5-year stage; each 1pp of cost of capital moves the implied operating-profit growth ~7.8pp.

How unusual the bet is: within-range

ReferenceValue
vs own history+1.28σ
cohort percentile (of 212 peers)72
sustained it ~5 years at this level38%
implied end-window share0%

Valuation X-Ray

Asset, earnings-power and peer-multiple models all land far below the price; ONLY the growth-DCF reaches it. The bet is durable compounding the static frames structurally cannot price (a moat/durability premium).

How the valuation models price the stock relative to the market price. Price/FV above 1.0 means the market pays more than that lens defends (expensive); at or below 1.0 the lens can defend the price.

FamilyMedian price/FVModelsReads
Asset3.58x5expensive
Earnings3.65x2expensive
Relative1.69x3expensive
Growth1.03x3expensive

Families that justify the price: Growth Families that call it expensive: Asset, Earnings, Relative

The models below discount at their own flat-beta convention rates (cost of equity 9.3%, WACC 8.4%); the inversion above states its own rate.

Per-Model Detail (n=13)

ModelFamilyFVPrice/FVApplicableMethodology
DCF Perpetual GrowthGrowth$22.064.99xyesFCF base $0.1B, growth 6% (input: historical growth), terminal g 4.0%, WACC 8.4%, 5yr projection
DCF Exit MultipleGrowth$114.970.96xyesExit EV/EBITDA: 22.4x / 24.4x / 26.4x (bear / base = today's held flat / bull), 5yr
Relative ValuationRelative$72.551.52xyesP/E 25.61x (blended: static sector reference 20x + trailing (TTM) 39x), scenarios: 21.5x / 25.6x / 29.7x (bear / base = reference held flat / bull), EV/EBITDA 16.41x
Simple DDMGrowthno
Two-Stage DDMGrowthno
Simple Excess ReturnAsset$30.733.58xyesBV/sh $13.75, ROE (TTM) 20.7%, ke 9.3%
Two-Stage Excess ReturnAsset$45.532.42xyes5yr excess ROE then converge to ke=9.3%
Discounted Future Market CapGrowth$106.391.03xyesRev $2.6B, growth 6% (input: historical growth; tapered), Terminal P/S: 2.1x / 2.5x / 2.9x (bear / base = today's held flat / bull, cap 8x)
Growth-Adjusted P/ERelativeno
Margin TrajectoryGrowthno
Earnings Power ValueEarnings$29.563.72xyesNormalized EBIT (5y avg op income, one-time charges added back) $0.29B × (1−23%) / WACC 8.4% → EPV (no growth)
Residual IncomeAsset$43.622.52xyesBV $13.75 + 5yr PV of (ROE (TTM) 20.7% − Kₑ 9.3%) × BV; BV grows 8.8%/yr
Graham NumberAsset$29.693.70xyes√(22.5 × EPS $2.85 × BVPS $13.75) — Graham's conservative floor
EV/EBITDA RelativeRelative$49.702.21xyesEBITDA $0.32B × sector EV/EBITDA 13.0x
FCF YieldEarnings$0.0111000.00xyesFCF $88.7M / Kₑ 9.3% — zero-growth perpetuity (excluded from median)
SBC-Adj FCF YieldEarnings$0.0111000.00xyesSBC-adj FCF $0.06B (FCF $0.09B − SBC $0.03B) capitalized at Kₑ (excluded from median)
Ben Graham FormulaEarnings$2.3946.03xyesEPS $2.85 × (8.5 + 2×-5.0%) × (4.4 / 5.3%) (excluded from median)
ROIC-Justified P/BAsset$7.6314.42xyesBV $13.75 × (ROIC 4.7% / WACC 8.4%)
P/Sales SectorRelative$65.201.69xyesRevenue $2.61B × sector P/S 1.5x
PEG Fair ValueRelativeno
Earnings YieldEarnings$30.813.57xyesEPS $2.85 / required return 9.3% (Rf 4.3% + ERP 5.0%)
Funds From Operations MultipleRelativeno
Clinical Phase NPVGrowthno
MertonAssetno
V5 Mechanicalno

Solvency

FieldValue
Net debt$1.2b
Net debt / NOPAT (after-tax)4.99x
Net debt / operating income (pre-tax)3.85x
Share count CAGR (buyback)-5.1%
Burning cashno

Interest expense is not separately reported in the latest filings, so interest coverage cannot be computed.

Bullet Takeaways

Bull Case

Acushnet is a mature business, and the right way to read it is to ask what mature means here: not slow decline, but a durable, share-leading position in a sport whose participation is at record highs. The methods that assume mean reversion, the asset and earnings-power frames, mark the stock cheap because they cannot price brand durability. The growth-DCF families are the only ones that reach the current price, and that is the tell: the market is paying for the persistence of a moat, not for a hockey-stick reacceleration. The company's own filing explains the source of that durability. Dedicated golfers are described as "avid and skill-biased, prioritize performance and commit the time, effort and money to improve their game," and the filing notes they are "the most consistent purchasers of golf products" and "the most likely to invest in premium performance" gear (FY2025 10-K, accession 0001672013-26-000057). That is a customer base that buys through cycles and pays up for the leading ball and the leading wedge.

The demand backdrop is the strongest it has been in a generation. U.S. on-course participation exceeded 29 million golfers in 2025 with more than 80 million rounds logged, a record set for the fourth time in five years, and total participation surpassed 48 million, up roughly 50% over the past decade. Acushnet sells the premium products into that expanding pool, and the first quarter showed it capturing the growth: net sales rose 7.1% to $753.0 million, with Titleist golf equipment up 8.9% and golf gear up 10.8%. New-product cadence is healthy, with the Vokey SM11 wedges and second-year GT drivers selling well, and management pulled the Titleist GTS metals launch forward to June to extend the selling window.

The financial profile supports the premium. Adjusted EBITDA grew 4.1% to $144.6 million at a 19.2% margin, and management reaffirmed full-year guidance of $2,625 million to $2,675 million in net sales and $415 million to $435 million in adjusted EBITDA. The company is shrinking its share count at about 5% a year through buybacks, which compounds per-share value on top of mid-single-digit top-line growth. The inverted read frames the embedded assumption as within range: the price asks for durable mid-teens-and-better operating compounding, consistent with the company's own track record, rather than something heroic. For a category leader with a loyal, growing customer base, that is a bet on continuity, not on a miracle.

Bear Case

The external variable with the most leverage on Acushnet right now is trade policy, and the current price does not fully reflect that exposure. Golf equipment is sourced through a global supply chain, and tariffs hit the cost base directly. In the first quarter tariffs added about $17 million of cost year over year, and management projects roughly $70 million of annualized impact in 2026, with gross margin already down on a 220-basis-point tariff drag. The company has signaled that raising prices is the "last lever" it wants to pull, which protects volume but means the tariff cost lands on margins. A premium-priced product can absorb some inflation, but $70 million against an EBITDA guide in the low $400-millions is a material headwind that is largely outside management's control and whose duration management itself calls hard to quantify.

The second macro exposure is that golf is discretionary, and the participation boom is the thing the bull case leans on hardest. Rounds played and participation are at record highs after a multi-year surge, which raises the question of whether the demand is at a cyclical peak rather than a permanent step-up. If the post-pandemic enthusiasm fades or a consumer slowdown trims discretionary spending on premium equipment and apparel, the volume tailwind reverses at exactly the moment tariffs are pressuring margins. The early signs of softness are already visible inside the quarter: FootJoy net sales declined about 1%, driven by lower footwear volumes, so not every part of the franchise is participating in the growth.

The valuation leaves little room for either risk to materialize. Analyst sentiment reflects the stretch: the consensus is neutral with a median target near $96 to $98, below the current price, and no analysts in the surveyed group carry a Buy rating. A durable franchise justifies a premium, but the size of this premium assumes the participation boom holds and tariffs prove temporary, and if either assumption breaks, the methods that anchor to current economics sit a long way down.

Valuation

The X-ray for Acushnet has a clean shape: the static frames mark it expensive and only the growth frames reach the price. The asset-based excess-return and residual-income methods land between about $31 and $46, the earnings-power and earnings-yield methods near $30, and the peer-multiple methods between roughly $50 and $72. The growth-DCF family is the exception, with an exit-multiple DCF at about $112.84 and a discounted-future-market-cap method at about $104.25, both essentially on top of the $107.79 price (June 27, 2026). When only the growth frames reach the price, the market is paying for durability the static methods structurally cannot capture.

The inverted view names the bet without overstating it. The price embeds operating compounding of roughly mid-teens or better sustained over time, which the framework characterizes as within range given the company's own history, supported by the growth-DCF rather than by a stretch beyond all the methods. Current operating margin is about 11.7% against an implied figure near 11.9%, so the bet is not primarily a margin-expansion story; it is a durability story, that Titleist and FootJoy keep their leading positions and keep selling premium products to a loyal customer base. That is exactly the kind of moat premium the asset and earnings frames cannot price.

The honest synthesis is that this is a quality franchise trading at a price that requires the moat to hold. The bull case is that record participation and a discerning, repeat-buying customer base make the durability real, in which case the growth methods are the right lens and the premium is earned. The bear case is that the price also requires tariffs to fade and the participation boom to persist, and if either fails, the stock has a long way to fall back toward the earnings-power and peer methods. The valuation is a referendum on durability, with a real franchise underneath and a demanding price on top.

Catalysts

The dominant near-term catalyst is tariffs and how Acushnet manages them: the company faces roughly $70 million of projected annualized impact in 2026 after about $17 million of incremental cost in the first quarter, and management has framed pricing action as the last lever, so any change in trade policy or any decision to raise prices would move both margins and volume. New-product cadence is the demand engine, with the Vokey SM11 wedges and second-year GT drivers performing well and the Titleist GTS metals launch pulled forward to June to extend the selling window; the reception to GTS is a concrete catalyst for the back half. Guidance trajectory is the key earnings test, with management reaffirming full-year net sales of $2,625 million to $2,675 million and adjusted EBITDA of $415 million to $435 million. The golf participation trend is a macro catalyst worth watching, since U.S. participation is approaching 50 million and rounds played are at records, but a softening would remove the volume tailwind. FootJoy is a segment-level swing factor after net sales declined about 1% on lower footwear volumes. Sentiment is cautious, with a neutral consensus and a median target near $96 to $98 that sits below the current price, so the stock would need a clean beat that proves the tariff impact is contained to shift the Street's view.

Sources: StockTitan Q1, Investing.com Q1 slides, SGB Media, National Golf Foundation

Peer Cohorts (Per Segment, With Filing Citations)

Titleist Golf Equipment / Golf Gear (reported)

FootJoy Golf Wear (reported)

Methodology Note

Fundamentals sourced from SEC EDGAR filings. Current price from Databento. The priced-in inversion and valuation x-ray are computed by the boothcheck engine; narrative composed by AI from the structured data.

View the full interactive GOLF report on boothcheck