Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Babcock International GroupLSE:BAB +1.02%59 EV-to-OCF is 15.15 as of Aug. 15, 2026, which is 21% above its 10-year median of 12.49. GuruFocus rates LSE:BAB with a GF Score™ of 59/100 and a GF Value™ of £6.35 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,792 Construction companies, Babcock International Group ranks worse than 72.21% on this metric.
The historical rank and industry rank for Babcock International Group's EV-to-OCF or its related term are showing as below:
LSE:BAB'
s EV-to-OCF Range Over the Past 10 Years
Min: 6.13 Med: 12.49 Max: 425.05
Current: 15.15
During the past 13 years, the highest EV-to-OCF of Babcock International Group was 425.05. The lowest was 6.13. And the median was 12.49.
LSE:BAB's EV-to-OCF is ranked worse than 72.21% of 1792
companies
in the Construction industry
Industry Median: 6.94
vs LSE:BAB: 15.15
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Babcock International Group (LSE:BAB) EV-to-OCF Explanation
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Babcock International Group's PE Ratio (TTM) for today is calculated as:
Babcock International Group's share price for today is £11.935.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Babcock International Group's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was £0.413.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Babcock International Group EV-to-OCF Related Terms
Babcock International Group EV-to-OCF Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Engineering & Construction subindustry, Babcock International Group's EV-to-OCF, along with its competitors' market caps and EV-to-OCF data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Babcock International Group EV-to-OCF vs Construction Industry
For the Construction industry and Industrials sector, Babcock International Group's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Babcock International Group's EV-to-OCF falls into.
Babcock International Group's current Enterprise Value is £6,097 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Babcock International Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was £402 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Babcock International Group (LSE:BAB) has a EV-to-OCF of 15.15 as of Aug. 15, 2026. This is 21% above median its historical median of 12.49. Over the past decade, Babcock International Group's EV-to-OCF has ranged from 6.13 to 425.05. According to the industry distribution chart, Babcock International Group ranks #1294 out of 1792 companies in the Construction industry, placing it in the top 72.2%.
Is Babcock International Group's EV-to-OCF too high?
Babcock International Group's current EV-to-OCF of 15.15 is 21% above median its 10-year median of 12.49. Over the past 10 years, this metric has ranged from a low of 6.13 to a high of 425.05. The Construction industry median EV-to-OCF is 6.94. Babcock International Group's value of 15.15 is 118.3% above this industry median. Based on the distribution chart, Babcock International Group ranks #1294 out of 1792 companies in the Construction industry, which is below the industry midpoint. Overall, Babcock International Group has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Babcock International Group's EV-to-OCF compare to PWR and FIX?
According to the Construction industry distribution chart, Babcock International Group ranks #1294 out of 1792 companies for EV-to-OCF. This places Babcock International Group in the lower half of its industry. The industry median EV-to-OCF is 6.94. Babcock International Group's value of 15.15 is 118.3% above this benchmark. Historically, Babcock International Group's own EV-to-OCF has ranged from 6.13 to 425.05 over the past decade. While the company's 10-year median is 12.49 vs. the industry median of 6.94, Babcock International Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-OCF for a Construction company?
The median EV-to-OCF among Construction companies is 6.94, based on 1,792 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Babcock International Group's current EV-to-OCF of 15.15 is 118.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Construction industry, the median EV-to-OCF is 6.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Babcock International Group's current EV-to-OCF is 15.15, which is 21% above median its own 10-year median of 12.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Babcock International Group stock overvalued right now?
Based on GuruFocus' analysis, Babcock International Group (LSE:BAB) is currently considered Significantly Overvalued. The stock's GF Value™ is £6.35, compared to a current price of £11.94 — trading 88% above its estimated fair value. The current EV-to-OCF is 15.15, which is 21% above median its 10-year median of 12.49 and 118.3% above the Construction industry median of 6.94. Babcock International Group's overall GF Score™ is 59/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Babcock International Group (LSE:BAB), the current EV-to-OCF is 15.15 as of Aug. 15, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Babcock International Group (LSE:BAB) Overvalued in 2026?
Based on GuruFocus' analysis, Babcock International Group stock appears to be overvalued.
The current stock price of £11.94 is trading 88% above its estimated GF Value™ of £6.35.
GuruFocus considers Babcock International Group to be Significantly Overvalued.
Key valuation signals for LSE:BAB:
EV-to-OCF: 15.15 (21% above median its 10-year median of 12.49)
GF Value™: £6.35 vs. price of £11.94 (88% above fair value)
Industry Position: 118.3% above the Construction median (#1294 of 1792)
No single metric tells the full story. See the LSE:BAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Babcock International Group PLC is a British engineering company specializing in the construction and decommissioning of nuclear power plants and submarines; maintenance support; fleet management for aviation, marine, and land; and provision of technical training and emergency services. The company's operating segments include Marine, Land, Aviation, and Nuclear. It generates maximum revenue from the Nuclear segment, which is engaged in providing engineering support to the United Kingdom's nuclear submarine fleet, decommissioning nuclear facilities, supporting nuclear generation, and new build projects. Geographically, it derives a majority of its revenue from the United Kingdom and also has a presence in the Rest of Europe, Africa, North America, Australasia, and the Rest of the World.
59GF Score
Get the complete analysis for LSE:BAB
EV-to-OCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LSE:BAB has been successfully added to your 
