Sturm Ruger shares climb to session high, up 2.9%

Sturm Ruger shares climb to session high, up 2.9%

Sturm Ruger (NYSE: RGR) shares have climbed to a session high, gaining 2.9% to trade at $39.34 as of September 10, 2025. This upward movement comes after an analysis by Simply Wall St, which estimated the company's intrinsic value at $39.34 using a 2-stage Free Cash Flow to Equity model . The analysis suggests that Sturm Ruger is trading at a discount to its fair value estimate, with the stock currently valued at 10% below its intrinsic value.

The 2-stage growth model used in the analysis projects Sturm Ruger's free cash flow over the next ten years, with the first stage assuming a higher growth rate and the second stage assuming a stable growth rate. The model also takes into account the terminal value of the business, which is calculated using the Gordon Growth formula and a cost of equity of 7.2%.

The current share price of $35.4 indicates that Sturm Ruger is trading at a similar level to its fair value estimate, with the industry average discount to fair value being 18%. However, the company's earnings have declined over the past year, and its dividend is low compared to the top 25% of dividend payers in the leisure market, which could pose potential risks for investors .

While the DCF model provides valuable insights into Sturm Ruger's valuation, it is essential to consider other factors such as risks, future earnings, and alternative high-quality stocks. Additionally, the company's debt-free status and the fact that it is trading below its estimated fair value present opportunities for potential shareholders.

In conclusion, Sturm Ruger's shares have climbed to a session high, up 2.9%, as of September 10, 2025. The company's valuation appears to be in line with its intrinsic value estimate, but investors should remain aware of the risks and consider other factors before making investment decisions.