BBW
Build-A-Bear Workshop, Inc.
$36.97
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 56.4% below fair value
You pay
$36.97
Bear
$74.19
Fair
$84.79
Bull
$95.39
Bear
$74.19
+100.7%
$3.99 × 19x P/E
Fair
$84.79
+129.4%
$3.99 × 22x P/E
Bull
$95.39
+158.0%
$3.99 × 25x P/E
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
9.3x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $70.00 from 11 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $84.79 per share.
Warnings
Wall Street's average price target is $70.00 (from 11 analysts). Our estimate is 26% above the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples