Baby Bunting Group Limited

ASX:BBN Stock Report

Market Cap: AU$246.0m

Baby Bunting Group Valuation

Is BBN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BBN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BBN (A$1.83) is trading below our estimate of fair value (A$2.83)

Significantly Below Fair Value: BBN is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for BBN?

Other financial metrics that can be useful for relative valuation.

BBN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.8x
Enterprise Value/EBITDA13.4x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

How does BBN's PE Ratio compare to its peers?

The above table shows the PE ratio for BBN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.5x
MHJ Michael Hill International
20.3x24.4%AU$261.5m
SSG Shaver Shop Group
9.6x5.4%AU$150.3m
DSK Dusk Group
7.9x23.6%AU$49.8m
SUL Super Retail Group
12.4x1.4%AU$3.4b
BBN Baby Bunting Group
25x36.7%AU$246.0m

Price-To-Earnings vs Peers: BBN is expensive based on its Price-To-Earnings Ratio (25x) compared to the peer average (12.5x).


Price to Earnings Ratio vs Industry

How does BBN's PE Ratio compare vs other companies in the AU Specialty Retail Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a7.7%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a7.7%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: BBN is expensive based on its Price-To-Earnings Ratio (25x) compared to the Australian Specialty Retail industry average (14.7x).


Price to Earnings Ratio vs Fair Ratio

What is BBN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BBN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25x
Fair PE Ratio29x

Price-To-Earnings vs Fair Ratio: BBN is good value based on its Price-To-Earnings Ratio (25x) compared to the estimated Fair Price-To-Earnings Ratio (29x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst BBN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$1.83
AU$2.10
+14.8%
15.1%AU$2.65AU$1.70n/a7
Apr ’25AU$2.10
AU$2.04
-2.7%
14.4%AU$2.65AU$1.70n/a7
Mar ’25AU$1.62
AU$1.74
+7.6%
17.9%AU$2.00AU$1.06n/a7
Feb ’25AU$1.52
AU$1.96
+28.8%
8.0%AU$2.15AU$1.75n/a6
Jan ’25AU$2.00
AU$2.22
+11.1%
10.9%AU$2.50AU$1.88n/a6
Dec ’24AU$1.64
AU$2.43
+48.3%
23.2%AU$3.70AU$1.88n/a7
Nov ’24AU$1.69
AU$2.43
+44.0%
23.2%AU$3.70AU$1.88n/a7
Oct ’24AU$2.12
AU$2.45
+15.4%
22.3%AU$3.70AU$1.88n/a7
Sep ’24AU$2.20
AU$2.45
+11.2%
22.3%AU$3.70AU$1.88n/a7
Aug ’24AU$2.02
AU$1.94
-3.8%
39.8%AU$3.70AU$1.10n/a7
Jul ’24AU$1.38
AU$1.87
+36.1%
41.6%AU$3.70AU$1.10n/a7
Jun ’24AU$1.80
AU$2.81
+56.3%
18.0%AU$3.70AU$2.40n/a7
May ’24AU$2.20
AU$2.67
+21.2%
14.4%AU$3.50AU$2.40n/a6
Apr ’24AU$2.00
AU$2.66
+33.0%
15.8%AU$3.50AU$2.40AU$2.105
Mar ’24AU$2.15
AU$2.96
+37.5%
25.9%AU$4.44AU$2.40AU$1.626
Feb ’24AU$2.74
AU$3.38
+23.4%
18.6%AU$4.44AU$2.80AU$1.526
Jan ’24AU$2.71
AU$3.92
+44.6%
18.5%AU$4.75AU$2.80AU$2.006
Dec ’23AU$2.60
AU$3.92
+50.7%
18.5%AU$4.75AU$2.80AU$1.646
Nov ’23AU$2.82
AU$4.28
+51.7%
14.1%AU$4.95AU$3.32AU$1.696
Oct ’23AU$3.78
AU$5.53
+46.2%
11.2%AU$6.20AU$4.44AU$2.126
Sep ’23AU$4.31
AU$5.53
+28.2%
11.2%AU$6.20AU$4.44AU$2.206
Aug ’23AU$4.79
AU$6.01
+25.4%
9.0%AU$6.60AU$5.00AU$2.025
Jul ’23AU$4.06
AU$6.21
+52.9%
3.5%AU$6.60AU$6.00AU$1.385
Jun ’23AU$4.42
AU$6.39
+44.5%
5.0%AU$6.90AU$6.00AU$1.805
May ’23AU$4.65
AU$6.39
+37.3%
5.0%AU$6.90AU$6.00AU$2.205
Apr ’23AU$4.96
AU$6.39
+28.8%
5.0%AU$6.90AU$6.00AU$2.005

Analyst Forecast: Target price is less than 20% higher than the current share price.


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