SWBI Valuation

Smith & Wesson Brands Inc

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8.170

+0.1(1.239%)1D

Overview
Forecast
Valuation
Earnings

SWBI Relative Valuation

SWBI's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, SWBI is overvalued; if below, it's undervalued.

Historical Valuation

Smith & Wesson Brands Inc (SWBI) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.79 is considered Undervalued compared with the five-year average of 20.31. The fair price of Smith & Wesson Brands Inc (SWBI) is between 12.29 to 15.27 according to relative valuation methord. Compared to the current price of 8.17 USD , Smith & Wesson Brands Inc is Undervalued By 33.5%.

Relative Value

Fair Zone

12.29-15.27

Current Price：8.17

33.5%

Undervalued

204.25

Trailing

Forward

7.93

EV/EBITDA

Smith & Wesson Brands Inc. (SWBI) has a current EV/EBITDA of 7.93. The 5-year average EV/EBITDA is 5.63. The thresholds are as follows: Strongly Undervalued below 2.00, Undervalued between 2.00 and 3.82, Fairly Valued between 7.45 and 3.82, Overvalued between 7.45 and 9.26, and Strongly Overvalued above 9.26. The current Forward EV/EBITDA of 7.93 falls within the Overvalued range.

24.85

EV/EBIT

Smith & Wesson Brands Inc. (SWBI) has a current EV/EBIT of 24.85. The 5-year average EV/EBIT is 10.60. The thresholds are as follows: Strongly Undervalued below -1.08, Undervalued between -1.08 and 4.76, Fairly Valued between 16.44 and 4.76, Overvalued between 16.44 and 22.28, and Strongly Overvalued above 22.28. The current Forward EV/EBIT of 24.85 falls within the Strongly Overvalued range.

0.79

Smith & Wesson Brands Inc. (SWBI) has a current PS of 0.79. The 5-year average PS is 1.11. The thresholds are as follows: Strongly Undervalued below 0.75, Undervalued between 0.75 and 0.93, Fairly Valued between 1.29 and 0.93, Overvalued between 1.29 and 1.47, and Strongly Overvalued above 1.47. The current Forward PS of 0.79 falls within the Undervalued range.

0.00

P/OCF

Smith & Wesson Brands Inc. (SWBI) has a current P/OCF of 0.00. The 5-year average P/OCF is 4.83. The thresholds are as follows: Strongly Undervalued below -3.99, Undervalued between -3.99 and 0.42, Fairly Valued between 9.24 and 0.42, Overvalued between 9.24 and 13.64, and Strongly Overvalued above 13.64. The current Forward P/OCF of 0.00 falls within the Undervalued range.

0.00

P/FCF

Smith & Wesson Brands Inc. (SWBI) has a current P/FCF of 0.00. The 5-year average P/FCF is -59.69. The thresholds are as follows: Strongly Undervalued below -638.68, Undervalued between -638.68 and -349.18, Fairly Valued between 229.80 and -349.18, Overvalued between 229.80 and 519.29, and Strongly Overvalued above 519.29. The current Forward P/FCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

Smith & Wesson Brands Inc (SWBI) has a current Price-to-Book (P/B) ratio of 0.97. Compared to its 3-year average P/B ratio of 1.47 , the current P/B ratio is approximately -34.33% higher. Relative to its 5-year average P/B ratio of 2.14, the current P/B ratio is about -54.74% higher. Smith & Wesson Brands Inc (SWBI) has a Forward Free Cash Flow (FCF) yield of approximately -7.96%. Compared to its 3-year average FCF yield of -5.87%, the current FCF yield is approximately 35.62% lower. Relative to its 5-year average FCF yield of 6.60% , the current FCF yield is about -220.69% lower.

0.97

P/B

Median3y

1.47

Median5y

2.14

-7.96

FCF Yield

Median3y

-5.87

Median5y

6.60

Competitors Valuation Multiple

The average P/S ratio for SWBI's competitors is 1.95, providing a benchmark for relative valuation. Smith & Wesson Brands Inc Corp (SWBI) exhibits a P/S ratio of 0.79, which is -59.37% above the industry average. Given its robust revenue growth of -11.55%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

SWBI.O

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Loss

478.60M

Performance Decomposition

Market capitalization of SWBI decreased by 34.79% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 19.84 to 27.23.

The secondary factor is the Revenue Growth, contributed -11.55%to the performance.

Overall, the performance of SWBI in the past 1 year is driven by P/E Change. Which is more unsustainable.

-11.55%

159.15M → 140.76M

Revenue Growth

-60.48%

17.51 → 6.92

Margin Expansion

37.24%

19.84 → 27.23

P/E Change

-34.79%