Callaway Golf Co (CALY) is fairly valued and Mattel Inc (MAT) is undervalued.
Against our estimates of intrinsic value, MAT trades at the wider discount: a margin of safety of +20%, against -2% for CALY.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.4% (average of 2 methods) values the shares at $14.52; the price of $14.81 is 2% above that value, and 74% of that value comes from beyond year five.
Leak Score 0/100 on 2 of 12 signals
Discounting its cash flows at 7.4% (average of 3 methods) values the shares at $16.60; the price of $13.21 is 20% below that value, and 81% of that value comes from beyond year five.
Leak Score 84/100 on 3 of 12 signals
| Metric | CALY | MAT |
|---|---|---|
| Verdict | Fairly valued | Undervalued |
| Price | $14.81 | $13.21 |
| Intrinsic value | $14.52 | $16.60 |
| Margin of safety | -2% | +20% |
| Leak Score | 0/100 (2/12) | 84/100 (3/12) |
| Market cap | $2.6B | $3.8B |
| Revenue growth, 5 years | 5.3% | 3.1% |
| Operating margin | 8.6% | 8.7% |
| Net margin | -9.0% | 7.8% |
| Return on equity | 3.0% | 20.5% |
| Debt to equity | 0.13 | 1.37 |
| P/E | — | 9.7x |
| Forward P/E | 16.5x | 8.3x |
| P/B | 1.2x | 1.9x |