* Note: Prices are in Million (M) USD.
Description:
BigBearai Holdings Inc. is a leading provider of advanced artificial intelligence and machine learning solutions, specifically designed for the defense and intelligence sectors. The company utilizes cutting-edge analytics and sovereign data solutions to optimize operational efficiency and support critical decision-making for its clients. With a strong emphasis on innovation and proprietary technology integration, BigBearai enhances agility for organizations addressing complex challenges in national security and various commercial applications. As the demand for AI-driven insights continues to rise, BigBearai is strategically positioned to capitalize on growth opportunities, making it an attractive investment for institutional investors looking for exposure in the burgeoning AI sector.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $87 M
Debt : $108 M
EBITDA : $-227 M
Net Debt (Debt - Cash): $21 M
Since Ebitda is less than 0, 0 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Services-prepackaged software
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 8 overlapping fiscal years (max 20).Average Free Cash Flow: $-22 M
Average Revenue: $120 M
Revenue Converted To Free Cash Flow (%): -18.5%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-12-31): $128 M
Revenue 5 Years Ago (2020-12-31): $91 M
Total Growth over 5 Years: 39.8%
5-Year Revenue CAGR (Historical): 6.9%
Forward 5-Year CAGR (Tapered): 6.2%
Since historical Revenue CAGR is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-12-31): $3,588 M
Share Count 5 Years Ago (2021-12-31): $107 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $-0.38
Trailing 12-Month Earnings Per Share (EPS): $-0.30
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-0.38
- Latest/TTM EPS: $-0.30
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 4 valid ROE years (max 20).Average ROE: -24.5%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $3.04
52-Week Low: $2.36
Threshold Price (15% Above 52-Week Low): $2.71
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $1,495 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 10 points to above BigBearai Holdings Inc (BBAI) stock.
Fair Value PE 20, Industry Based PE 25, Growth Based PE 15, Risk-Free Anchored PE (25% MoS) 18.16. Based on these 4 values, average assigned is 19.54. The fair value of BigBearai Holdings Inc (BBAI) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
