One-glance verdict
Undervalued
$209.39 our estimate vs market $67.35
Wall Street consensus: $85.23 (-59.3% lower than our fair-value estimate)
68% below our estimate, below the bear case
Fundamentals snapshot
Booz Allen Hamilton Holding Corporation
BAH · NYQ · Industrials · Consulting Services
Current price
$67.35
52-week range
$59.50 - $109.10
Market cap
$8.10B
Balance sheet
Distressed
4.97x Stretched
Net debt $3.62B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Returns 68.6% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Reward Trades at 11.1x P/E vs peer median 14.7x (25.0% cheaper).
- Risk Net debt grew 27.8% over 3 years.
What this company does
Booz Allen Hamilton Holding Corporation
Booz Allen Hamilton is a consulting firm that acts as a high-tech problem solver for the U.S. government, working on projects like cybersecurity and artificial intelligence. Because the vast majority of its revenue (the total money brought in from sales) comes from these large government contracts, its business tends to be very stable and predictable.
How the company got here
Founded in 1914 by Edwin G. Booz, the company was a pioneer in the idea that businesses could benefit from outside expert advice, essentially creating the management consulting industry. For many years, it served both commercial and government clients, including helping the U.S. Navy prepare for World War II. A major turning point came in 2008 when the company split, selling its commercial consulting arm to focus almost entirely on U.S. government contracts. This decision solidified its position as a key technology and consulting partner to federal agencies.
What it actually does
Booz Allen Hamilton is a technology and consulting firm that primarily serves the U.S. government. Think of them as a team of experts that government agencies, like the military and intelligence services, hire to help with complex challenges. They provide services in areas like artificial intelligence (using smart computer systems to analyze information), cybersecurity (protecting computer networks from hackers), and engineering. A large portion of their employees hold security clearances, allowing them to work on sensitive and classified government projects.
Defense
This is the company's largest business area, making up about half of its revenue. In this segment, Booz Allen works with branches of the U.S. military and other defense agencies. They provide a range of services from developing strategy and improving operations to building and implementing new technologies for military use. This could involve anything from creating more efficient supply chains (the system of getting equipment and supplies to troops) to developing advanced software for defense systems.
Civil
This part of the business focuses on non-defense related U.S. government agencies, and accounts for a significant portion of the company's work. Clients here include departments that handle things like healthcare, transportation, and homeland security. For these clients, Booz Allen might help modernize their technology systems, analyze large amounts of data to improve services, or provide consulting on how to operate more efficiently.
Intelligence
This segment works with the U.S. intelligence community, which includes agencies responsible for national security. This is a substantial part of their business, where they provide highly specialized technology and analysis services. Their work in this area often involves dealing with very sensitive information and developing advanced tools for data analysis, surveillance, and cybersecurity to help protect the country.
What management is betting on now
The company's leadership is focused on positioning Booz Allen as a premier technology provider, not just a consulting firm. They are heavily investing in high-growth areas like artificial intelligence, cybersecurity, and digital transformation (helping clients update their technology and processes for the modern era). The strategy is to embed their technology and expertise so deeply into critical government missions that they become an essential partner. This approach aims to secure long-term contracts in the most technically demanding and well-funded areas of government spending.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$563.29M
FY2025 Q3
$133.59M
FY2025 Q4
$194.44M
FY2026 Q1
$96.00M
FY2026 Q2
$395.00M
FY2026 Q3
$248.00M
FY2026 Q4
$212.00M
FY2027 Q1
$261.00M
Revenue
$2.80B
Net income
$198.00M
Diluted EPS
1.63
Operating cash flow
$281.00M
Free cash flow
$261.00M
Fetching…
Sources
Revenue
$2.78B
Net income
$205.00M
Diluted EPS
1.69
Operating cash flow
$240.00M
Free cash flow
$212.00M
Fetching…
Sources
Revenue
$2.62B
Net income
$200.00M
Diluted EPS
1.63
Operating cash flow
$261.00M
Free cash flow
$248.00M
Fetching…
Sources
Revenue
$2.89B
Net income
$175.00M
Diluted EPS
1.42
Operating cash flow
$421.00M
Free cash flow
$395.00M
Fetching…
Sources
Revenue
$2.92B
Net income
$271.00M
Diluted EPS
2.16
Operating cash flow
$119.00M
Free cash flow
$96.00M
Fetching…
Sources
Revenue
$2.97B
Net income
$192.71M
Diluted EPS
1.52
Operating cash flow
$219.01M
Free cash flow
$194.44M
Fetching…
Sources
Revenue
$2.92B
Net income
$186.95M
Diluted EPS
1.45
Operating cash flow
$150.77M
Free cash flow
$133.59M
Fetching…
Sources
Revenue
$3.15B
Net income
$390.11M
Diluted EPS
3.01
Operating cash flow
$587.09M
Free cash flow
$563.29M
Fetching…
Sources
Is it cheap or expensive?
Fair value $209.39 vs current price $67.35
Wall Street consensus is the average analyst price target: $85.23 (-59.3% lower than our fair-value estimate).
Our most-likely fair value is $209.39 a share — about 210.9% above today's price of $67.35, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $3.6B. Interest coverage 5.0x.
Net debt
$3.62B
Interest coverage
4.97x
Booz Allen Hamilton Holding Corporation's profit covers its interest bill about 5.0 times over. which is stronger than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
BAH
BASELINE
Booz Allen Hamilton Holding Corporation
Total debt $4.16B Interest coverage 4.97x This is the baseline the peer rows are being compared against.
Total debt $6.58B Interest coverage 10.34x +108% vs BAH Carries about 2.1x more debt cushion than BAH.
Total debt $5.38B Interest coverage 4.27x -14% vs BAH Has roughly the same debt cushion as BAH.
Total debt $2.70B Interest coverage 4.07x -18% vs BAH Carries about 1.2x less debt cushion than BAH.
Total debt $2.80B Interest coverage 3.59x -28% vs BAH Carries about 1.4x less debt cushion than BAH.
Total debt $564.79M Interest coverage 4.72x -5% vs BAH Has roughly the same debt cushion as BAH.
What you should know
The case for and against BAH
3 Rewards
1 Risk
Rewards
-
Returns 68.6% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 10/10 years.
-
Trades at 11.1x P/E vs peer median 14.7x (25.0% cheaper).
Risks
-
Net debt grew 27.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
11.06x
Forward P/E
10.01x
P/B
6.74x
P/S
0.73x
EV/EBITDA
9.34x
PEG ratio
1.09x
Profitability
How much profit each dollar creates
Gross margin
22.4%
Operating margin
10.0%
Net margin
7.0%
ROE
68.6%
ROA
9.2%
Health
Liquidity and balance-sheet strength
Debt / equity
3.46x
Current ratio
1.59x
Quick ratio
1.50x
Total debt
$4.16B
Total cash
$540.00M
Growth
How the business has been compounding
Revenue TTM
$11.09B
Revenue 5Y CAGR
7.6%
EPS TTM
6.09
EPS 5Y CAGR
50.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.20B
Free CF TTM
$951.00M
FCF margin
8.6%
Dividend
Shareholder payout
Yield
3.4%
Payout ratio
35.8%
Last ex-div date
2026-08-14