Babcock International Group PLC (BAB) Fair Value & Analysis
Industrials · GB · Market cap 5.1B GBX · ISIN GB0009697037
What is Babcock International Group PLC really worth?
A solid business, currently priced close to our fair value of £9.02.
Strengths
Risks
For context
Fair value as of: Aug 21, 2026
From 24 valuation models · updated 15 days ago
Share price −16.4% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price sits close to our fair value, market and models broadly agree here, little valuation tension.
- A fairly wide model range (£6.23 to £11.27) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 21, 2026.
How to read this chart
60‑month range £2.51 – £15.02 · fair‑value band £6.23 – £11.27 · the £9.91 price screens above the £9.02 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 21, 2026.
Analysis
Babcock International Group PLC (BAB) currently trades at £9.91, while our model-based Fair Value estimate is £9.02, implying the stock looks roughly 9.8% fairly valued today. The Quality Score stands at 52/100 (solid quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of £9.55 per share, and 5 of the 24 models we run sit above the £9.91 price. Bear case: the Earnings-Based group reads lowest at £3.06, and 19 of the 24 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, Babcock International Group PLC generated revenue of £5.0B at a net margin of 5.8%. Revenue grew 5.4% year over year. It earns a return on equity of 44.9%. Net debt stands at £358M. Fundamentals as of Aug 21, 2026
Our scenario range runs from £6.23 (bear case) to £11.27 (bull case); at £9.91, the current price sits within 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 last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. For context, the median of 10 Industrials peers we cover trades at −46% fair-value upside, at −9%, BAB screens cheaper than that median.
Fair Value models
This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly £0.2108 per share, which is 2.3 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.
All 24 models by family
Widest divergence: DCF Models (£9.55) versus Asset-Based (£0.8400). Highest evidence: FCF DCF (80).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 21, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 52 · Market factors (momentum, volatility) 37
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.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Babcock International Group PLC, together with its subsidiaries, engages in the design, development, manufacture, and integration of specialist systems for aerospace, defense, and security in the United Kingdom, rest of Europe, Africa, North America, Australasia, and internationally. It operates through four segments: Marine, Nuclear, Land, and Aviation.
Full company description
Babcock International Group PLC, together with its subsidiaries, engages in the design, development, manufacture, and integration of specialist systems for aerospace, defense, and security in the United Kingdom, rest of Europe, Africa, North America, Australasia, and internationally. It operates through four segments: Marine, Nuclear, Land, and Aviation. The company offers type 31 frigates, project lurcher, jackal contract, ground deployed advanced mortar system, general logistics vehicle, Babcock's LGE, and armored land cruiser 300. It also provides weapons handling systems, autonomous and uncrewed aerial systems, and engineering and systems integration. In addition, the company is involved in the design, integration, and through-life support of various connected combat, support, and surveillance vehicles; integration of long-range fires and C4ISTAR systems; provision of system engineering and general vehicle architecture services; and specialist vehicle conversions. Further, it provides equipment support, frontline support, and training services. The company was founded in 1891 and is based in London, the United Kingdom.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2022 – FY2026 · reported fiscal years
Babcock International Group PLC reported revenue of £5.2B in FY2026 versus £4.1B in FY2022, a compound +6.0%/yr. Reported net income was £211M in FY2026, compounding +6.5%/yr from FY2022.
of which total revenue +1.4 % · buybacks/dilution −0.3 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
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Peer Group
Engineering & Construction · 816 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.
Valuation Multiples vs Engineering & Construction median · lower = cheaper
Strength profile in five axes (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.
Insider activity: 40/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Aug 21, 2026).
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|---|---|---|---|
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| Comfort Systems USA, Inc FIX | $1,615 | $519.97 | −68% |
| Larsen & Toubro Limited LT | ₹4,072 | ₹2,196 | −46% |
| Ferrovial N.V FER | €57.28 | €19.17 | −67% |
| HOCHTIEF Aktiengesellschaft HOT | €426.40 | €203.87 | −52% |
| Samsung C&T Corporation 028260 | 373,000 KRW | 261,411 KRW | −30% |
| EMCOR Group EME | $775.04 | $549.47 | −29% |
| MasTec, Inc MTZ | $241.00 | $100.00 | −59% |
| Bouygues SA EN | €46.65 | €65.67 | +41% |
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