Build-A-Bear Workshop, Inc.

BBW ·Consumer Cyclical, Specialty Retail, United States
Valuation › AI Valuation

AI Valuation

AI-generated fair value estimate for this company.

AI Fair Value $35.50
Market Price $25.45
Undervalued By 28.3%

Method: FCF-based DCF (Gordon growth): normalized FCF ~$33.6M (avg of FY2025 $27.77M and FY2026 $39.51M); 10% discount rate; 2% terminal growth; equity value ~$429M / ~12.08M shares outstanding.

Reasoning: Build-A-Bear Workshop is a real NYSE-listed specialty retailer with consistent positive free cash flow and minimal net debt, making a standard FCF DCF appropriate despite the recent guidance cut and CEO transition.