Babcock International Group PLC
LSE:BAB

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Babcock International Group PLC Logo
Babcock International Group PLC
LSE:BAB
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Price: 1 100 GBX -0.32% Market Closed
Market Cap: £5.4B

P/FCFE

47.4
Current
89%
More Expensive
vs 3-y average of 25.1

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
47.4
=
Market Cap
GBX7.1B
/
Free Cash Flow to Equity
£117.6m

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
47.4
=
Market Cap
GBX7.1B
/
Free Cash Flow to Equity
£117.6m

Valuation Scenarios

Babcock International Group PLC is trading above its 3-year average

If P/FCFE returns to its 3-Year Average (25.1), the stock would be worth GBX582.37 (47% downside from current price).

Statistics
Positive Scenarios
0/3
Maximum Downside
-100%
Maximum Upside
No Upside Scenarios
Average Downside
82%
Scenario P/FCFE Value Implied Price Upside/Downside
Current Multiple 47.4 GBX1 100
0%
3-Year Average 25.1 GBX582.37
-47%
Industry Average 0.4 GBX10.22
-99%
Country Average 0.2 GBX4.75
-100%

Forward P/FCFE
Today’s price vs future free cash flow to equity

Not enough data available to calculate forward P/FCFE

Peer Comparison

All Multiples
P/FCFE
P/E
All Countries
Close
Market Cap P/FCFE P/E
UK
Babcock International Group PLC
LSE:BAB
5.5B GBP 47.4 19.4
US
Raytheon Technologies Corp
NYSE:RTX
234.3B USD 58.2 32.3
US
RTX Corp
LSE:0R2N
235B USD 58.4 32.4
US
Boeing Co
NYSE:BA
179.2B USD -16 93.2
NL
Airbus SE
PAR:AIR
137.7B EUR 47.3 26.4
UK
Rolls-Royce Holdings PLC
LSE:RR
101.3B GBP 40.9 17.3
FR
Safran SA
PAR:SAF
113.8B EUR 23.9 15.9
US
Lockheed Martin Corp
NYSE:LMT
117.4B USD 19.6 24.5
US
Howmet Aerospace Inc
NYSE:HWM
96.2B USD 92.7 63.9
US
General Dynamics Corp
NYSE:GD
93.5B USD 32.4 22.2
UK
BAE Systems PLC
LSE:BA
61.1B GBP 53 29.6

Market Distribution

Higher than 99% of companies in United Kingdom
Percentile
99th
Based on 1 918 companies
99th percentile
47.4
Low
0 — 0.1
Typical Range
0.1 — 0.4
High
0.4 —
Distribution Statistics
United Kingdom
Min 0
30th Percentile 0.1
Median 0.2
70th Percentile 0.4
Max 901.8

Babcock International Group PLC
Glance View

Babcock International Group PLC, a stalwart in the realm of engineering support services, operates at the intersection of innovation and tradition. Born in the industrial heartlands of the United Kingdom, it has carved a niche by focusing on essential infrastructure and capabilities crucial to national security and societal functioning. Its expertise is predominantly centered around the defense, emergency services, and civil nuclear sectors. Babcock’s adaptability is exemplified through its involvement in critical projects - whether it’s maintaining naval fleets or ensuring the readiness of military aircrews. In essence, Babcock provides technical support that ensures the seamless operation of some of the most complex and vital systems, making it an indispensable asset to both government and private sectors alike. Through its diverse offerings, Babcock generates revenue primarily by securing long-term contracts for providing services such as engineering support and fleet management. These contracts often come from governmental bodies, ensuring a steady flow of business with low commercial risk and high predictability. Moreover, its strategic focus on sectors that are less prone to economic cycles gives Babcock a stable financial footing. By investing in technology and skills development, the company not only enhances its service propositions but also fortifies relationships with clients, ensuring repeat business and operational scalability. It's this blend of robust sector focus and strategic foresight that enables Babcock International to maintain its pivotal presence in the global engineering services landscape.

BAB Intrinsic Value
1 041.89 GBX
Overvaluation 5%
Intrinsic Value
Price GBX1 100
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