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Hasbro (HAS) Could Be 193% Undervalued After Its Blooms By Play Doh Launch

Simply Wall St·07/15/2026 04:55:13
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Hasbro (HAS) has introduced Blooms by Play-Doh, a new adult-focused crafting and home décor line built around lifelike floral arrangements, prompting investors to reassess how this extension might influence the broader Play-Doh franchise.

See our latest analysis for Hasbro.

Hasbro’s share price has softened recently, with a 30-day share price return of 6.53% and a 90-day decline of 16.51%. However, the 3-year total shareholder return of 41.02% points to a much stronger longer term picture, so initiatives like Blooms by Play-Doh may be watched as potential catalysts for future sentiment shifts.

If you are interested in how other consumer brands are trying to tap into long term themes like creativity and technology, it may be worth checking out 18 top founder-led companies

Hasbro shares have pulled back despite long term returns that look more solid, and Blooms by Play-Doh adds a fresh twist to the story. Does the current valuation still leave more upside than downside for new buyers?

Preferred Price-to-Sales Multiple of 2.3x: Is it justified?

On current figures, Hasbro trades at a P/S of 2.3x, which lines up with the SWS fair P/S estimate of 2.3x and sits well above leisure sector peers.

The P/S multiple compares Hasbro’s market value to its annual revenue and can be useful when earnings are negative, as is the case here with a reported net loss of $222.6m on revenue of $4.8b.

With the SWS fair P/S ratio also at 2.3x, the current valuation looks closely aligned with what the model suggests the multiple could gravitate toward. This is despite the stock being described as expensive versus both the US leisure industry average P/S of 0.9x and a peer average of 1.2x.

Explore the SWS fair ratio for Hasbro

Result: Price-to-sales of 2.3x (ABOUT RIGHT)

However, Hasbro still faces pressure from its recent net loss and the risk that new concepts like Blooms by Play-Doh will fail to gain meaningful traction with adults.

Find out about the key risks to this Hasbro narrative.

Another View: Hasbro Through the SWS DCF Lens

The price to sales cross check paints Hasbro as roughly in line with its fair ratio, but the SWS DCF model tells a different story. With the stock at $78.42 and an estimated future cash flow value of $229.68, this approach points to a very wide valuation gap. Which signal should matter more to you?

Before putting too much weight on either signal, it can help to see how the SWS DCF model is built and what assumptions sit behind that $229.68 figure, so you can judge how much confidence to place in it Look into how the SWS DCF model arrives at its fair value.

HAS Discounted Cash Flow as at Jul 2026
HAS Discounted Cash Flow as at Jul 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Hasbro for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 44 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With Hasbro sending mixed signals on value and execution, the real question is how you interpret the balance between opportunity and risk in the data in front of you. Take a closer look at both sides of the story with 3 key rewards and 2 important warning signs

Looking for more investment ideas beyond Hasbro?

If Hasbro has you rethinking how you build a portfolio, do not stop here. Broaden your watchlist with fresh stock ideas that match your style.

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.