Evaluating BBB Foods (NYSE:TBBB): Is the Stock Undervalued Ahead of Q3 Earnings and Guidance Update?

BBB Foods (TBBB) is set to announce its third-quarter earnings after the market closes on November 19, 2025. This has drawn keen attention from investors focused on the company's earnings and guidance for the next quarter.

See our latest analysis for BBB Foods.

With anticipation building ahead of earnings, BBB Foods’ 1-month share price return of 8% and recent upward momentum suggest investors are watching for positive surprises and renewed growth signals. However, the total shareholder return over the past year stands at -10.85%, highlighting ongoing volatility and a market still weighing the company’s long-term prospects.

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With recent gains and analysts pointing out upside potential, the key question emerges: is BBB Foods undervalued right now, or are investors already factoring in its growth story, leaving little room for surprises?

Most Popular Narrative: 12.8% Undervalued

The most widely followed narrative points to a fair value that is 12.8% above the last close, suggesting the current price may not be reflecting the company’s full future potential. This opens a discussion focused on expansion, margin improvement, and the catalysts shaping BBB Foods' outlook.

Ongoing aggressive store expansion, particularly into four new regions with adjacent, already familiar markets, is fueling rapid top-line revenue growth and accelerating market penetration. As these new stores mature, operating leverage is expected to improve EBITDA margins and earnings.

Read the complete narrative.

Want to know the growth blueprint behind this high valuation? The key factor in this narrative is record-breaking revenue acceleration and a future profit multiple usually reserved for much larger companies. Interested in discovering which bold financial projections are supporting this fair value? Click through to see the quantitative assumptions that underpin the analyst case.

Result: Fair Value of $33.47 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent margin pressure from rapid expansion, along with Mexico-centric risks, could dampen profit growth and challenge the bullish consensus around BBB Foods’ valuation.

Find out about the key risks to this BBB Foods narrative.

Another View: Pricing by Sales Ratio Raises Questions

Looking at BBB Foods through its price-to-sales ratio, the picture is less optimistic. The company trades at 0.9x sales, which is notably higher than both its peer average of 0.4x and the US consumer retailing industry average. However, this is just below the fair ratio of 1x, suggesting there could be some room for value. The question is whether investors are willing to pay a premium today for growth that is still unfolding, or if this leaves little margin for error.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own BBB Foods Narrative

If you see the story differently or want to dig into the numbers on your own terms, you can explore the data and shape your own insights in just a few minutes. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding BBB Foods.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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