BAB Inc (BABB) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of BAB Inc stock $1.29, price $0.83, upside +55.4%, quality 71 out of 100. Rating: strongly undervalued. Calculated from audited financials with 25 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 4, 2026.
How to read this chart
60‑month range $0.3278 – $0.9887 · fair‑value band $0.9400 – $1.67 · the $0.8300 price screens below the $1.29 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 4, 2026.
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BAB, Inc. franchises and licenses bagel and muffin retail units under the Big Apple Bagels (BAB), My Favorite Muffin (MFM), and SweetDuet (SD) trade names in the United States.
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The company's BAB franchised brand includes baked bagels, flavored cream cheeses, premium coffees, gourmet bagel sandwiches, and other related products; and MFM brand comprises various freshly baked muffins and coffees, as well as units operating as My Favorite Muffin Your All Day Bakery Café features specialty bagel sandwiches and related products.
It's SD brand includes frozen yogurt products. BAB, Inc. was founded in 1993 and is based in Deerfield, Illinois.
Stock analysis
BAB Inc (BABB) currently trades at $0.8300, while our model-based Fair Value estimate is $1.29, implying the stock looks roughly 36% undervalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $1.31 per share, and 20 of the 25 models we run sit above the $0.8300 price.
Bear case: the Asset-Based group reads lowest at $0.1600, and 5 of the 25 models stay below the price. Data coverage for this calculation is low.
Scenario range: $0.9400 (bear) to $1.67 (bull), the price of $0.8300 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 71/100 (solid quality), in the Consumer Defensive sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
BAB Inc reported revenue of $3.4M in FY2025 versus $3.1M in FY2021, a compound +2.9%/yr. Reported net income was $559K in FY2025, compounding −3.7%/yr from FY2021.
Key figures
Market cap $6.0M Micro · P/E ratio 9.2 · P/S ratio 1.70 · EPS (TTM) $0.0900 · Dividend yield 4.8% · Net margin 18.5% · Return on equity 18.4% · Return on assets (EBIT) 13.9% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 69 out of 100 (medium confidence).
What moves the price
The share trades about 16% below its 52-week high and 5% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Defensive peers we cover trades at −1% fair-value upside, at 55%, BABB screens cheaper than that median.
Fair Value models
Bear$0.9400Fair Value $1.29Bull$1.67
Price $0.8300 · Upside +55.4%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 11 months old). Earnings retained since then ($0.0471 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.79/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
−3.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+1.5%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.7%
Start year 2020 (pandemic). Over 10 years: +4.5% a year
Revenue growth 11 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.8%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+5.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year+0.3%
Dividend (yield on the price)4.8%
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.10% → 21%
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−5.8%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect
n/a
No analyst forecast available.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −8.0% a year for the price.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Packaged Foods · 624 stocks
Beats the industry median on 11/13 measures
Overall it ranks above its industry peers.
Valuation
Quality Score71 · Top 25%
Fair Value upside+55.4% · Top 25%
Profitability
Return on equity (12 months)18.4% · Top 25%
Return on assets11.7% · Top 25%
Net margin (12 months)18.5% · Top 25%
Operating margin (12 months)33.2% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)18.1% · Top 25%
Dividend yield (12 months)4.8% · Top 25%
Valuation Multiplesvs Packaged Foods median · lower = cheaper
P/E (12 months)9.2× · Cheapest 25%
P/B1.74× · Pricier than median
P/S (12 months)1.70× · Priciest 25%
Price / free cash flow (fiscal year)14.7× · Cheaper than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "BAB Inc Fair Value". https://www.fairvalue-calculator.com/stock/BABB
Frequently asked questions
Is BAB Inc (BABB) overvalued or undervalued?
As of Nov 4, 2026, our model estimates a fair value of $1.29 versus a price of $0.8300, about +55% upside (undervalued).
What is the fair value of BABB?
Our model-based fair value for BAB Inc is $1.29 (as of Nov 4, 2026), built from audited fundamentals. The current price: $0.8300.
What is the quality score of BABB?
BAB Inc has a Quality Score of 71/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for BAB Inc (BABB)?
Our model-based price target is the fair value of $1.29 (as of Nov 4, 2026) from 25 valuation models. Cautious scenario $0.9400, optimistic scenario $1.67. It is a calculation from audited fundamentals, not an analyst target.
What is the BAB Inc stock forecast for 2026?
Our models put fair value at $1.29, about +55% upside versus a price of $0.8300 (undervalued). Cautious scenario $0.9400, optimistic scenario $1.67. The calculation is refreshed regularly with new filings.
What is the revenue of BAB Inc (BABB)?
BAB Inc reported trailing-twelve-month revenue of about $3.5M (latest available figure, as of Nov 4, 2026).
Does BAB Inc pay a dividend?
BAB Inc currently shows a dividend yield of 4.82% relative to its recent price (as of Nov 4, 2026).
How much is the dividend of BAB Inc (BABB) and when is the ex-dividend date?
BAB Inc pays a dividend of $0.04 per share a year, a dividend yield of 4.8%. The last ex-dividend date was Sep 29, 2026. A dividend has been paid every year since at least 2003. The payout ratio is 44.4% of earnings. Free cash flow covers the dividend 1.41 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into BAB Inc (BABB)?
For today's price to be fair in a discounted-cash-flow model, BAB Inc would have to grow free cash flow by -5.8 % per year for five years (discount rate 8.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +7.7 % per year. As of Nov 4, 2026.
What discount rate (WACC) does the fair value of BABB use?
Our models discount BAB Inc at 8.5 %: a base by market capitalisation (nano), damped by beta 0.21, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For BAB Inc that is -5.8 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (8.5 %) and the same formula as our fair value.
How much growth has BAB Inc (BABB) delivered so far?
Over the past 5 years revenue at BAB Inc grew +7.7 % a year. The price currently implies free-cash-flow growth of -5.8 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of BAB Inc (BABB) growing?
The median revenue growth in the sector is +3.6 % a year. That is the yardstick for the growth priced into BAB Inc (-5.8 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of BAB Inc (BABB)?
The free-cash-flow yield on the price is 6.81 %: that much free cash flow BAB Inc produces per unit of market value. When it exceeds the discount rate of our models (8.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of BAB Inc (BABB)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For BAB Inc it is $1.29 per share (as of Nov 4, 2026), against a price of $0.8300. It is the blended result of 25 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is BAB Inc stock overvalued or undervalued in 2026?
As of Nov 4, 2026, BABB trades below its calculated fair value: price $0.8300, fair value $1.29, a gap of about +55% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of BABB?
No. The price is what the market pays today ($0.8300); the fair value is what the company's own numbers justify ($1.29). For BAB Inc the two are $0.4600 per share apart. That gap is exactly why we show both numbers side by side.
How much is BAB Inc worth?
The market values BAB Inc at about $6.0M (market capitalisation, as of Nov 4, 2026). Per share that is $0.8300; our models calculate a fair value of $1.29 per share.
What do the bullish and bearish scenarios say about BABB?
Our models span a range for BAB Inc: cautious scenario $0.9400, base $1.29, optimistic $1.67 per share (as of Nov 4, 2026, price $0.8300). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of BABB?
BAB Inc trades at a price-to-earnings ratio of 9.2 (as of Nov 4, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $1.29 is built from several models across several years. Median P/E at fiscal year-end, 8 fiscal years (2017 to 2025), reported earnings: 11.1. Other multiples: P/B 1.7, P/S 1.7, EV/EBITDA 4.4.
How solid is the balance sheet of BAB Inc (BABB)?
Balance-sheet figures for BAB Inc (as of Nov 4, 2026): return on equity 18.4%. They feed the Quality Score of 71/100, which measures business quality independently of the share price.
How far is BABB from its 52-week high?
BAB Inc trades at $0.8300, about 16% below its 52-week high of $0.9887 and 5% above the low of $0.7905 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $1.29 is for.
Which stocks are comparable to BAB Inc?
From the same area (Consumer Defensive) we also value Nestlé S.A, Danone S.A, Foshan Haitian Flavouring and Food Company, The Kraft Heinz Company, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is BAB Inc stock attractive at the current price?
The data as of Nov 4, 2026: price $0.8300, calculated fair value $1.29 (+55%), Quality Score 71/100, from 25 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of BABB calculated?
We run BAB Inc through 25 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $1.29 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. BAB Inc currently trades 36% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of BAB Inc (BABB)?
The closing price on Nov 6, 2026 was $0.8300. Our model-based fair value is $1.29, about +55% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with BAB Inc right now?
The price is below even our cautious bear case ($0.9400). The market is more pessimistic than our downside scenario. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid quality (71/100) at a price below fair value, the discount is the argument here, not the business quality.
Key figures of BAB Inc
How large is the market capitalisation of BAB Inc (BABB)?
The market capitalisation of BAB Inc is $6.0M. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of BAB Inc (BABB)?
The price-to-sales ratio of BAB Inc is 1.70 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of BAB Inc (BABB)?
Earnings per share at BAB Inc are $0.0900 (price ÷ EPS = P/E 9.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of BAB Inc (BABB)?
The dividend yield of BAB Inc is 4.8% (payout 44.4%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of BAB Inc (BABB)?
The net margin of BAB Inc is 18.5% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of BAB Inc (BABB)?
The return on equity (ROE) of BAB Inc is 18.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of BAB Inc (BABB)?
On an EBIT basis the return on assets of BAB Inc is 13.9% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of BAB Inc (BABB)?
The operating margin of BAB Inc is 33.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at BAB Inc (BABB)?
Revenue at BAB Inc is growing +18.1% versus a year earlier (3y avg +1.5%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at BAB Inc (BABB)?
Earnings per share at BAB Inc are growing +35.6% versus a year earlier. How much earnings per share grew versus a year earlier.
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Thin data
Nov 4, 2026