Stock fact sheet · data as of
Invesco Taxable Municipal Bond ETF (BAB): fair value, margin of safety and Wheel Score
Ticker symbol BAB · Financial Services · Asset Management · United States · Fund / Note
Is BAB undervalued?
Invesco Taxable Municipal Bond ETF (BAB) closed at 25.99 on 5 Nov 2026. The GLS average fair value - the simple average of the 6 valuation models that produced a positive number - is 38.02, which puts the price 32% below it. 3 of the 6 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
There is a wide gap between DDM (16.86) and Graham Growth (95.93). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
BAB looks like a fund, note or preferred share rather than an operating company, so the nightly engine files it under Fund / Note: the valuation models are not built for it, and its Wheel Score is capped at 45.
Nine valuation models for BAB
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 32.36 | +24% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 95.93 | +269% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 41.93 | +61% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 22.42 | -14% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 16.86 | -35% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 18.64 | -28% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 1.05 | -96% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Invesco Taxable Municipal Bond ETF scores only 3 of 9 on the Piotroski F-score, which fails the "Piotroski 6 or more" Wheel Trade Filter. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. There is no GLS Moat score for BAB: funds, notes and second share lines get none, and so does a company with fewer than two years of accounts on file. The Moat part of the Wheel Score is zero.
Returns on capital are thin or negative - ROIC 1.8%, ROE 1.8%, ROA 1.8% - with debt at 0.00 times equity and negative free cash flow.
The dividend yield is high at 4.41% (payout ratio 0%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.
Institutional ownership scores 9/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 3 / 9 | ROIC | 1.8% |
|---|---|---|---|
| GLS Moat | - / 10 | ROE | 1.8% |
| Debt / equity | 0.00 | ROA | 1.8% |
| Free-cash-flow yield | 0.0% | Payout ratio | 0% |
| Institutions | 9 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 29: Weak
With a Wheel Score of 29 Invesco Taxable Municipal Bond ETF sits in the Weak band. It fails filter 1, options that actually trade - options too quiet (2 open interest, 2 a day); and filter 2, a real business, not a gamble - a fund or note, not a company; and filter 4, financially healthy - Piotroski 3/9 (under 6); and filter 7, a premium worth selling - implied volatility 24% (under 25%); and filter 8, big enough - market cap $877M (under $1.0B); Moat (weak) is its weakest part.
Implied volatility on the near-the-money contracts is 24%, below the 25% the Wheel Trade Filter on premium asks for: a put pays too little to be worth selling. Chain open interest is thin - 2 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 155k shares a day on a market cap of $877M, with a beta of 0.98; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (2 open interest, 2 a day) |
| 2 | A real business, not a gamble | Fails | a fund or note, not a company |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 3/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Fails | implied volatility 24% (under 25%) |
| 8 | Big enough | Fails | market cap $877M (under $1.0B) |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 32% below fair value | |
| Premium | Weak | implied volatility 24% | |
| Moat | Weak | no moat score | |
| Health | Weak | Piotroski 3/9 | |
| Red Flags | Good | Red Flags score 80/100 | |
| Option trading | Weak | 2 contracts a day, 2 open interest | |
| Stability | Fair | beta 0.98, $877M company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for BAB in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Asset Management
The 12 companies below are the closest to Invesco Taxable Municipal Bond ETF by market cap within the Asset Management industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| CHI Calamos Convertible Opportunities and Income Fund | 10.86 | 46.90 | +77% | 26No options | $878M |
| ARSVX AMG River Road Small Cap Value Fund - Class N | 15.83 | 17.91 | +12% | 20No options | $881M |
| MYN BlackRock MuniYield New York Quality Fund, Inc. | 9.27 | 11.98 | +23% | 23No options | $873M |
| PML Pimco Municipal Income Fund II | 6.95 | 23.36 | +70% | 23No options | $872M |
| ASDVX American Century Short Duration Strategic Income Fund - Investor Class | 8.88 | 5.18 | -71% | 14No options | $868M |
| HF DGA Core Plus Absolute Return ETF | 22.62 | 60.01 | +62% | 30No options | $886M |
| ARBFX The Arbitrage Fund | 13.96 | 4.97 | -181% | 11No options | $893M |
| KBDC Kayne Anderson BDC, Inc. | 13.00 | 27.89 | +53% | 36No options | $858M |
| BCX Blackrock Resources & Commodities Strategy Trust | 11.76 | 30.47 | +61% | 34No options | $897M |
| ABINX American Century Balanced Fund | 22.16 | 5.60 | -296% | 10No options | $898M |
| VRTS Virtus Investment Partners, Inc. | 128.89 | 203.45 | +37% | 34No options | $854M |
| BTZ BlackRock Credit Allocation Income Trust | 9.66 | 25.55 | +62% | 34No options | $902M |
⚖ Compare BAB with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about BAB
Is BAB undervalued right now?
By the GLS models, yes: at 25.99 the stock is 32% below the average fair value of 38.02 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of BAB and what does it mean?
BAB scores 29 out of 100 (Weak) - it fails Wheel Trade Filters 1, 2, 4, 7, 8. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for BAB?
38.02 per share as of 5 Nov 2026 - the simple average of the 6 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Invesco Taxable Municipal Bond ETF report earnings next?
No upcoming earnings date is recorded for BAB in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does BAB have listed options, and how liquid are they?
Yes. The nightly snapshot found 44 listed contracts with 2 open interest across all expiries and implied volatility of 24% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.