BW Relative Valuation
BW's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, BW is overvalued; if below, it's undervalued.
Historical Valuation
Babcock & Wilcox Enterprises Inc (BW) is now in the Undervalued zone, suggesting that its current forward PS ratio of 1.12 is considered Undervalued compared with the five-year average of -7.49. The fair price of Babcock & Wilcox Enterprises Inc (BW) is between 14.74 to 17.32 according to relative valuation methord. Compared to the current price of 5.92 USD , Babcock & Wilcox Enterprises Inc is Undervalued By 59.84%.
Relative Value
Fair Zone
14.74-17.32
Current Price:5.92
59.84%
Undervalued
-30.24
PE
1Y
3Y
5Y
19.88
EV/EBITDA
Babcock & Wilcox Enterprises Inc. (BW) has a current EV/EBITDA of 19.88. The 5-year average EV/EBITDA is 9.30. The thresholds are as follows: Strongly Undervalued below 2.92, Undervalued between 2.92 and 6.11, Fairly Valued between 12.49 and 6.11, Overvalued between 12.49 and 15.68, and Strongly Overvalued above 15.68. The current Forward EV/EBITDA of 19.88 falls within the Strongly Overvalued range.
32.21
EV/EBIT
Babcock & Wilcox Enterprises Inc. (BW) has a current EV/EBIT of 32.21. The 5-year average EV/EBIT is 351.71. The thresholds are as follows: Strongly Undervalued below -2585.69, Undervalued between -2585.69 and -1116.99, Fairly Valued between 1820.41 and -1116.99, Overvalued between 1820.41 and 3289.12, and Strongly Overvalued above 3289.12. The current Forward EV/EBIT of 32.21 falls within the Historic Trend Line -Fairly Valued range.
1.12
PS
Babcock & Wilcox Enterprises Inc. (BW) has a current PS of 1.12. The 5-year average PS is 0.48. The thresholds are as follows: Strongly Undervalued below -0.13, Undervalued between -0.13 and 0.18, Fairly Valued between 0.79 and 0.18, Overvalued between 0.79 and 1.09, and Strongly Overvalued above 1.09. The current Forward PS of 1.12 falls within the Strongly Overvalued range.
49.81
P/OCF
Babcock & Wilcox Enterprises Inc. (BW) has a current P/OCF of 49.81. The 5-year average P/OCF is 12.23. The thresholds are as follows: Strongly Undervalued below -22.33, Undervalued between -22.33 and -5.05, Fairly Valued between 29.51 and -5.05, Overvalued between 29.51 and 46.79, and Strongly Overvalued above 46.79. The current Forward P/OCF of 49.81 falls within the Strongly Overvalued range.
379.29
P/FCF
Babcock & Wilcox Enterprises Inc. (BW) has a current P/FCF of 379.29. The 5-year average P/FCF is 22.02. The thresholds are as follows: Strongly Undervalued below -170.51, Undervalued between -170.51 and -74.25, Fairly Valued between 118.28 and -74.25, Overvalued between 118.28 and 214.55, and Strongly Overvalued above 214.55. The current Forward P/FCF of 379.29 falls within the Strongly Overvalued range.
Babcock & Wilcox Enterprises Inc (BW) has a current Price-to-Book (P/B) ratio of -3.04. Compared to its 3-year average P/B ratio of -23.01 , the current P/B ratio is approximately -86.80% higher. Relative to its 5-year average P/B ratio of -22.98, the current P/B ratio is about -86.79% higher. Babcock & Wilcox Enterprises Inc (BW) has a Forward Free Cash Flow (FCF) yield of approximately -14.47%. Compared to its 3-year average FCF yield of -54.50%, the current FCF yield is approximately -73.45% lower. Relative to its 5-year average FCF yield of -38.41% , the current FCF yield is about -62.33% lower.
-3.04
P/B
Median3y
-23.01
Median5y
-22.98
-14.47
FCF Yield
Median3y
-54.50
Median5y
-38.41
Competitors Valuation Multiple
The average P/S ratio for BW's competitors is 11.49, providing a benchmark for relative valuation. Babcock & Wilcox Enterprises Inc Corp (BW) exhibits a P/S ratio of 1.12, which is -90.27% above the industry average. Given its robust revenue growth of -2.37%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of BW increased by 335.29% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -1.84 to -9.36.
The secondary factor is the Revenue Growth, contributed -2.37%to the performance.
Overall, the performance of BW in the past 1 year is driven by P/E Change. Which is more unsustainable.
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Frequently Asked Questions
Is Babcock & Wilcox Enterprises Inc (BW) currently overvalued or undervalued?
Babcock & Wilcox Enterprises Inc (BW) is now in the Undervalued zone, suggesting that its current forward PS ratio of 1.12 is considered Undervalued compared with the five-year average of -7.49. The fair price of Babcock & Wilcox Enterprises Inc (BW) is between 14.74 to 17.32 according to relative valuation methord. Compared to the current price of 5.92 USD , Babcock & Wilcox Enterprises Inc is Undervalued By 59.84% .
What is Babcock & Wilcox Enterprises Inc (BW) fair value?
BW's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Babcock & Wilcox Enterprises Inc (BW) is between 14.74 to 17.32 according to relative valuation methord.
How does BW's valuation metrics compare to the industry average?
The average P/S ratio for BW's competitors is 11.49, providing a benchmark for relative valuation. Babcock & Wilcox Enterprises Inc Corp (BW) exhibits a P/S ratio of 1.12, which is -90.27% above the industry average. Given its robust revenue growth of -2.37%, this premium appears unsustainable.
What is the current P/B ratio for Babcock & Wilcox Enterprises Inc (BW) as of Jan 08 2026?
As of Jan 08 2026, Babcock & Wilcox Enterprises Inc (BW) has a P/B ratio of -3.04. This indicates that the market values BW at -3.04 times its book value.
What is the current FCF Yield for Babcock & Wilcox Enterprises Inc (BW) as of Jan 08 2026?
As of Jan 08 2026, Babcock & Wilcox Enterprises Inc (BW) has a FCF Yield of -14.47%. This means that for every dollar of Babcock & Wilcox Enterprises Inc’s market capitalization, the company generates -14.47 cents in free cash flow.
What is the current Forward P/E ratio for Babcock & Wilcox Enterprises Inc (BW) as of Jan 08 2026?
As of Jan 08 2026, Babcock & Wilcox Enterprises Inc (BW) has a Forward P/E ratio of -30.24. This means the market is willing to pay $-30.24 for every dollar of Babcock & Wilcox Enterprises Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Babcock & Wilcox Enterprises Inc (BW) as of Jan 08 2026?
As of Jan 08 2026, Babcock & Wilcox Enterprises Inc (BW) has a Forward P/S ratio of 1.12. This means the market is valuing BW at $1.12 for every dollar of expected revenue over the next 12 months.