Is Brunswick’s Recent Share Price Rebound Creating a Value Opportunity in 2025?

• If you have been wondering whether Brunswick is quietly turning into a value opportunity, you are not alone. Now is a good time to take a closer look at what the market might be missing.
• The stock has bounced recently, with shares up 5.9% over the last week, 6.5% over the past month, and 9.8% year to date, even though the 1 year return is still slightly negative at -6.3%.
• Some of this move reflects renewed optimism around discretionary leisure spending and demand for recreational marine products, as investors weigh up how resilient the boating market can be in a softer macro environment. Brunswick has also been in the spotlight for its ongoing innovation in boat and engine technology and its push into higher margin, tech enabled marine services, which can change how investors think about its long term earnings power.
• On our checklist of undervaluation signals, Brunswick scores a 4/6 valuation score. This suggests the market may not fully be pricing in its fundamentals yet. In the sections that follow we will walk through the main valuation approaches investors use today and finish with a more holistic way to judge whether the stock is truly cheap or expensive.

Find out why Brunswick's -6.3% return over the last year is lagging behind its peers.

Approach 1: Brunswick Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model estimates what a company is worth today by projecting the cash it can generate in the future and discounting those cash flows back to their present value.

For Brunswick, the latest twelve month Free Cash Flow is about $536.2 Million. Analysts provide explicit forecasts for the next few years, and beyond that Simply Wall St extrapolates the trend, resulting in an estimated Free Cash Flow of roughly $451.0 Million in 2035. These future cash flows are then discounted using the 2 Stage Free Cash Flow to Equity model to reflect risk and the time value of money.

On this basis, the model estimates an intrinsic value of about $112.32 per share. Compared with the current share price, this implies a 37.7% discount. This suggests the market may be pricing Brunswick too pessimistically relative to its projected cash generation.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Brunswick is undervalued by 37.7%. Track this in your watchlist or portfolio, or discover 907 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Brunswick.

Approach 2: Brunswick Price vs Sales

For companies like Brunswick that are solidly generating revenue and operating in a cyclical consumer market, the Price to Sales (P S) ratio is a practical way to judge valuation because it focuses on what investors are paying for each dollar of sales, regardless of short term earnings swings.

In general, higher growth and lower risk justify a higher P S multiple, while slower growth or more volatile cash flows call for a lower, more conservative multiple. Brunswick currently trades on a P S ratio of 0.88x, slightly below the Leisure industry average of about 0.93x and also below the peer average of roughly 1.21x, which suggests a modest discount.

Simply Wall St also calculates a proprietary Fair Ratio for Brunswick of 0.83x, which estimates what the P S multiple could be after factoring in its growth outlook, profitability, risk profile, industry and market cap. This is more tailored than a simple peer or sector comparison because it adjusts for Brunswick’s specific fundamentals rather than assuming all Leisure stocks warrant the same multiple. Compared with the current 0.88x, the Fair Ratio indicates that Brunswick is trading slightly above this level, but the gap is small enough that the shares can be viewed as roughly fairly priced.

Result: ABOUT RIGHT

PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1452 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Brunswick Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which are simply the stories investors tell about a company, backed up by their own assumptions about future revenue, earnings, margins and fair value. On Simply Wall St’s Community page, millions of investors use Narratives to connect a company’s business story to a concrete financial forecast and then to an explicit fair value estimate, making it much easier to decide whether the current price justifies buying, holding or selling. Because Narratives on the platform update dynamically when new information such as news, earnings or guidance is released, your view of Brunswick does not stay static; it evolves as the facts change. For example, one Brunswick Narrative might assume earnings reach the higher end of analyst expectations and justify a fair value closer to $88, while a more cautious Narrative could lean toward the lower $51 outcome. By comparing each Narrative’s fair value to today’s share price, you can quickly see which story you believe and what that implies for your next move.

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

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