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BAB, Inc (BABB) Fair Value & Analysis

Consumer Defensive · US · Market cap $6.5M

BI BAB, Inc logo BAB, Inc BABB · US
Price$0.8400
Fair Value$1.39
Upside+65.5%
Quality70/100
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Mixed Growth
Solidly profitable · 16.5% net margin
generates free cash flow
4.44% dividend yield
Ranks above peers (9/13)
Moderate moat 60/100
Evidence: High Range $1.02 – $1.83 Share as image

Fair value as of: Jul 14, 2026

From 25 valuation models · updated 27 days ago

Share price −1.2% over the past month.

A solid business, screening 65% undervalued on our models.

What matters now

  • The rarer combination: high quality (70/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The price is below even our cautious bear case ($1.02). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

$0.9887 $0.3142 Fair Value $1.39 Feb 2020 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 14, 2026.

How to read this chart

60‑month range $0.3142 – $0.9887 · fair‑value band $1.02 – $1.83 · the $0.8400 price screens below the $1.39 fair value. Dashed = 300-day average. As of Jul 14, 2026.

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Analysis

BAB, Inc (BABB) currently trades at $0.8400, while our model-based Fair Value estimate is $1.39, implying the stock looks roughly 65.5% undervalued today. The Quality Score stands at 70/100 (solid quality), in the Consumer Defensive sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, BAB, Inc generated revenue of $3.4M at a net margin of 16.5%. Revenue declined 4.4% year over year. It earns a return on equity of 16.8%. The stock trades on a trailing P/E of 11.3. Fundamentals as of Jul 14, 2026

Our scenario range runs from $1.02 (bear case) to $1.83 (bull case); at $0.8400, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 17% below its 52-week high and 16% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at -3% fair-value upside, at 65%, BABB screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model 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. Evidence
Highest evidence
Residual Income $0.4400 $0.5200 $0.8000 76
Growth DCF $0.7400 $0.8500 $0.9800 72
Gordon GGM $0.4200 $0.5900 $0.7300 70
All 25 models by family
DCF Models
FCF DCF $0.7400 $0.8600 $1.00 38
Owner Earnings $0.8900 $1.06 $1.26 31
5Y Revenue Exit $0.7500 $0.9500 $1.21 39
5Y EBITDA Exit $0.9600 $1.32 $1.73 41
5Y P/E Exit $1.07 $1.52 $1.96 38
10Y Revenue Exit $0.7300 $0.8900 $1.09 36
10Y EBITDA Exit $0.8500 $1.10 $1.41 37
10Y P/E Exit $0.9100 $1.22 $1.55 35
Earnings-Based
Graham-Dodd $0.5200 $1.15 $1.47 54
PEG = 1.0 $0.1800 $0.2600 $0.3400 46
EPV $0.8300 $0.9000 $0.9500 59
Dividend Discount
Gordon GGM $0.4200 $0.5900 $0.7300 70
DDM Multi-Stage $0.4200 $0.5500 $0.6800 61
Multiples
P/E Multiple $1.21 $1.62 $2.02 63
P/S Multiple $0.5700 $0.7600 $0.9500 58
P/B Multiple $0.9800 $1.31 $1.64 55
EV/EBIT $1.56 $1.99 $2.41 53
EV/EBITDA $1.27 $1.60 $1.92 54
EV/Revenue $0.7900 $1.01 $1.22 43
Asset-Based
NCAV (Graham) $0.2400 $0.3200 $0.4800 50
Growth DCF
Growth DCF $0.7400 $0.8500 $0.9800 72
Rev-Margin DCF $0.7500 $0.9600 $1.19 67
Economic Profit
Residual Income $0.4400 $0.5200 $0.8000 76
ROIC Compounder $0.8500 $0.9300 $1.00 67
Growth Earnings
Growth-Adj P/E $0.9000 $1.29 $1.67 68

Widest divergence: Multiples ($1.31) versus Asset-Based ($0.3200). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) $3.4M
Revenue growth (YoY) -4.4%
Net margin 16.5%
Return on equity 16.8%
Free cash flow $410K FY2025
P/E ratio 11.3
More key figures
Operating margin 21.1%
EPS (TTM) $0.0800
Dividend yield 4.4%
EPS growth (YoY) +2.5%

Figures from reported company fundamentals · as of Jul 14, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 70/100

Of which business quality 67 · Market factors (momentum, volatility) 46

Profitability 66
Margins and returns on capital today
Quality Growth 57
Are margins and returns improving?
Cashflow 55
Earnings quality: real cash, not paper profit
Fin. Strength 68
Balance sheet, leverage, solvency risk
Investment 87
Disciplined investing over empire-building
Low Volatility 72
Calm price path (market factor)
Momentum 34
Price trend over the last 3–12 months (market factor)
52W Momentum 36
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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.

Full company description

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. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

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.

Growth Quality 79/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
$3.4M
Latest YoY
−3.0%
Avg. growth/yr (3Y) 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.
+1.5%
Avg. growth/yr (5Y) 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.
+7.7%
Avg. growth/yr (11Y) 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.
+2.8%
Revenue +2.9%/yr
FY21 $3.1M
FY22 $3.3M
FY23 $3.5M
FY24 $3.5M
FY25 $3.4M
Net income −3.7%/yr
FY21 $651K
FY22 $432K
FY23 $467K
FY24 $525K
FY25 $559K

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Cite: Fair Value Calculator (2026). "BAB, Inc Fair Value". https://www.fairvalue-calculator.com/stock/BABB

Peer Group

Packaged Foods · 649 stocks

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.

Quality Score 70 · Top 25%
Fair Value upside +66% · Top 25%
Return on equity (TTM) 17% · Top 25%
Return on assets 10% · Top 25%
Net margin (TTM) 17% · Top 25%
Operating margin (TTM) 21% · Top 25%
Revenue growth -4% · Bottom 25%
Dividend yield (TTM) 4.4% · Top 25%

Valuation Multiples vs Packaged Foods median · lower = cheaper

P/E (TTM) 11.3× · Cheaper than 75% of peers
P/B 1.89× · Pricier than median
P/S (TTM) 1.92× · Pricier than 75% of peers
P/FCF 15.9× · Pricier than 75% of peers
EV/EBITDA 6.0× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 28
FUTURE 0 · sector 20
PAST 67 · sector 27
HEALTH 0 · sector 96
DIVIDEND 89 · sector 47

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Packaged Foods stocks, each showing price versus our Fair Value estimate (as of Jul 14, 2026).

Stock Price Fair Value vs Fair Value
Nestlé India Limited NESTLEIND ₹1,427 ₹362.37 -75%
Britannia Industries Limited BRITANNIA ₹5,413 ₹1,870 -65%
Tata Consumer Products Limited TATACONSUM ₹1,089 ₹327.27 -70%
PT Indofood CBP Sukses Makmur Tbk ICBP 6,650 IDR 15,757 IDR +137%
Samyang Foods Co 003230 1,139,000 KRW 1,010,543 KRW -11%
Patanjali Foods Limited PATANJALI ₹413.80 ₹157.04 -62%
Vietnam Dairy Products Joint Stock Company VNM 58,500 VND 68,259 VND +17%
PT Mayora Indah Tbk, MYOR 1,750 IDR 2,699 IDR +54%
PT Cisarua Mountain Dairy Tbk CMRY 4,490 IDR 4,355 IDR -3%
Nongshim Co 004370 348,500 KRW 530,619 KRW +52%

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Frequently asked questions

Is BAB, Inc (BABB) overvalued or undervalued?
As of Jul 14, 2026, our model estimates a fair value of $1.39 versus a price of $0.8400, about +65% (undervalued).
What is the fair value of BABB?
Our model-based fair value for BAB, Inc is $1.39 (as of Jul 14, 2026), built from audited fundamentals. The current price is $0.8400.
What is the quality score of BABB?
BAB, Inc has a Quality Score of 70/100. 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 revenue of BAB, Inc (BABB)?
BAB, Inc reported trailing-twelve-month revenue of about $3.4M (latest available figure, as of Jul 14, 2026).
What is the net profit margin of BABB?
The net profit margin of BAB, Inc is about 16.5%, meaning it keeps roughly 16.5% of revenue as net income. Based on the latest reported figures.
Does BAB, Inc pay a dividend?
BAB, Inc currently shows a dividend yield of about 4.44% relative to its recent price (as of Jul 14, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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