Callaway's transition to a golf entertainment company provides opportunity for a higher valuation range. Topgolf is expected to generate $1.06 billion in revenue and $158 million in EBITDA in 2021.

Valuing tobacco stocks using conventional methods (e.g., P/E, P/FCF, EV/EBITDA) can lead to overly optimistic expectations due to the known challenges of the cigarette industry. The article discusses ...