BAB, Inc. (BABB) intrinsic value & 10-year financials

BAB, Inc. (BABB) has a Graham intrinsic value of $0.87 per share. At $0.82 on Oct 17, 2026, the stock trades 6% below that value. Over the last 10 fiscal years revenue grew 4.2% a year to $3.4M, with an average return on invested capital of 23.3%.

Graham intrinsic value
$0.87
Share price (Oct 17, 2026)
$0.82
Price vs Graham value
6% below
Market cap
$7.6M
Revenue (FY2025)
$3.4M
Revenue growth (10-yr CAGR)
4.2%
ROIC (10-yr avg)
23.3%
Free cash flow (FY2025)
—

BABB 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $3.4M $559.0K — — 21.0% 33.6%
FY2024 $3.5M $525.2K — — 18.8% 34.3%
FY2023 $3.5M $467.3K — — 17.5% 31.8%
FY2022 $3.3M $432.0K — — 18.5% 27.7%
FY2021 $3.1M $651.1K — — 17.6% 26.5%
FY2020 $2.4M -$66.2K — — 9.8% 5.8%
FY2019 $3.1M $449.1K — $428.3K 15.4% 19.6%
FY2018 $2.2M $507.9K — — 24.7% 21.3%
FY2017 $2.2M $454.2K — — 20.7% 16.2%
FY2016 $2.4M $449.4K $0.06 — 19.3% 16.3%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

BAB, INC. has demonstrated mature, steady growth, with revenue compounding at 4.1% annually over the past decade.

BAB, INC. has earned high returns on invested capital, averaging 23.3% ROIC over the available history. High ROIC is consistent with a durable franchise, but it is not by itself proof of an economic moat.

BAB, INC. capital allocation metrics are N/A for the decade; share count and net debt history are incomplete.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, BAB, INC. is modeled at 4.2% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $0.87 per share.

BABB stock: frequently asked questions

What is the intrinsic value of BAB, Inc. (BABB) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 4.2% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, BABB's intrinsic value is about $0.87 per share.

Is BABB stock undervalued?

At $0.82 (close on Oct 17, 2026), BABB trades 6% below its Graham value of $0.87. On Graham's terms that leaves a margin of safety. A formula is a starting point for research, not a recommendation.

How fast has BAB, Inc. grown?

Revenue went from $2.4M in fiscal 2016 to $3.4M in fiscal 2025, a compound annual growth rate of 4.2%. Net income was $559.0K in fiscal 2025.

What is BABB's return on invested capital?

Average ROIC over the last 10 fiscal years was 23.3%, and average return on equity was 14.8%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this BABB data come from?

From BAB, Inc.'s annual 10-K filings on SEC EDGAR, most recently filed Jul 13, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

Similar retail-eating places stocks