Smith & Wesson Brands, Inc. (SWBI) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-33.2%

$8.85

vs $13.25 price

Levered DCF

$2.20

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

5.07

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	37×	31.77×	19.73×	15.1×	3.33×	3.77×	-6.56×	22.26×
P/B	1.84×	1.13×	1.94×	1.44×	1.8×	3.57×	1.03×	0.93×
P/S	1.32×	0.88×	1.45×	1.16×	0.75×	0.9×	0.59×	0.65×
EV / EBITDA	11.72×	9.14×	9.46×	6.96×	2.02×	2.5×	5.76×	5.91×
Gross margin	26.9%	26.8%	29.5%	32.2%	43.3%	42.4%	34.6%	35.4%
Operating margin	5.6%	5.0%	8.4%	10.1%	29.1%	30.2%	7.4%	6.0%
Net margin	3.5%	2.8%	7.4%	7.7%	22.5%	23.8%	-9.0%	2.9%
Current ratio	3.2×	4.16×	3.05×	3.35×	3.68×	2.13×	3.03×	2.68×
Debt / equity	0.14×	0.31×	0.19×	0.17×	0.11×	0.15×	0.52×	0.45×
Interest coverage	6.07×	5.17×	21.79×	146.24×	117.87×	81.56×	4.29×	3.89×
Dividend yield	3.4%	5.5%	2.8%	3.3%	2.3%	0.9%	0.0%	0.0%
Payout ratio	125.7%	172.0%	55.6%	49.7%	7.7%	3.3%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	4.9%	3.6%	9.9%	9.6%	53.9%	94.6%	-15.8%	4.1%
Return on invested capital	4.9%	3.4%	7.4%	8.1%	47.2%	75.8%	8.3%	3.7%
Return on assets	3.6%	2.4%	6.9%	6.8%	39.1%	56.5%	-8.4%	2.4%
Free cash flow yield	13.1%	-6.9%	2.0%	-13.2%	17.5%	30.8%	20.0%	5.6%
Earnings yield	2.7%	3.2%	5.1%	6.7%	30.0%	26.5%	-15.3%	4.5%
Enterprise value	$717M	$509.2M	$794.4M	$564.7M	$568M	$878.4M	$476.9M	$573.2M
Net debt / EBITDA	0.41×	1.61×	0.2×	0.13×	-0.29×	-0.2×	0.93×	1.66×
Cash conversion cycle (days)	147	214	156	201	107	36	93	164