As of May 24, 2025, Brunswick Corp has a Discounted Cash Flow (DCF) derived fair value of $144.54 per share. With the current market price at $49.76, this represents a potential upside of 190.5%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $125.56 |
| DCF Fair Value (10-year) | $144.54 |
| Potential Upside (5-year) | 152.3% |
| Potential Upside (10-year) | 190.5% |
| Discount Rate (WACC) | 6.2% - 7.7% |
Revenue is projected to grow from $5237 million in 12-2024 to $6900 million by 12-2034, representing a compound annual growth rate of approximately 2.8%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2024 | 5237 | 18% |
| 12-2025 | 4688 | -10% |
| 12-2026 | 4781 | 2% |
| 12-2027 | 4941 | 3% |
| 12-2028 | 5074 | 3% |
| 12-2029 | 5285 | 4% |
| 12-2030 | 5588 | 6% |
| 12-2031 | 5935 | 6% |
| 12-2032 | 6192 | 4% |
| 12-2033 | 6609 | 7% |
| 12-2034 | 6900 | 4% |
Net profit margin is expected to improve from 3% in 12-2024 to 9% by 12-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2024 | 149 | 3% |
| 12-2025 | 199 | 4% |
| 12-2026 | 257 | 5% |
| 12-2027 | 321 | 6% |
| 12-2028 | 385 | 8% |
| 12-2029 | 457 | 9% |
| 12-2030 | 484 | 9% |
| 12-2031 | 514 | 9% |
| 12-2032 | 536 | 9% |
| 12-2033 | 572 | 9% |
| 12-2034 | 597 | 9% |
with a 5-year average of $259 million. Projected CapEx is expected to maintain at approximately 4% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2025 | 264 |
| 12-2026 | 253 |
| 12-2027 | 219 |
| 12-2028 | 206 |
| 12-2029 | 220 |
| 12-2030 | 228 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 29 |
| Days Inventory | 118 |
| Days Payables | 44 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 9M/2025 | 456 | 39 | 156 | (215) | 476 |
| 2026 | 673 | 67 | 212 | 45 | 348 |
| 2027 | 722 | 84 | 219 | 40 | 380 |
| 2028 | 793 | 101 | 225 | (10) | 477 |
| 2029 | 902 | 120 | 234 | 43 | 506 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 125.56 | 152.3% |
| 10-Year DCF (Growth) | 144.54 | 190.5% |
| 5-Year DCF (EBITDA) | 67.95 | 36.6% |
| 10-Year DCF (EBITDA) | 93.25 | 87.4% |
Is Brunswick Corp (BC) a buy or a sell? Brunswick Corp is definitely a buy. Based on our DCF analysis, Brunswick Corp (BC) appears to be significantly undervalued with upside potential of 190.5%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a strong buy at the current market price of $49.76.