Stock fact sheet · data as of
Invesco Taxable Municipal Bond ETF (BAB): fair value, margin of safety and Wheel Score
Financial Services · Asset Management · United States · High Yield Income
Is BAB undervalued?
Invesco Taxable Municipal Bond ETF (BAB) closed at 25.77 on 16 Oct 2026. The GLS average fair value - the simple average of the 6 valuation models that produced a positive number - is 35.51, so the price sits 27% below it. 3 of the 6 models value the shares above the current price. A margin of safety between 10% and 30% is where most of the Sunday Scan candidates come from.
There is a wide gap between DDM (16.69) and Graham Growth (88.62). 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.
The nightly engine files BAB under High Yield Income: a dividend yield above 4%.
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 | 31.10 | +21% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 88.62 | +244% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 38.73 | +50% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 20.70 | -20% | 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 | 16.69 | -35% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 17.22 | -33% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 1.06 | -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 4 of 9 on the Piotroski F-score, which fails the Sunday Scan's "6 or more" rule. 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. A GLS Moat score of 3.6/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
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 4.40% (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 | 4 / 9 | ROIC | 1.8% |
|---|---|---|---|
| GLS Moat | 3.6 / 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 56: Fair
A Wheel Score of 56 puts Invesco Taxable Municipal Bond ETF in the Fair band - below the 70 the Sunday Scan requires. Value 24/25, Health 9/20, Moat 5/15, Premium 8/20 and Stability 9/20; the weakest part is Moat (5/15).
Implied volatility is 23% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (8 of 20 points). Chain open interest is thin - 8 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 192k shares a day on a market cap of $861M, with a beta of 0.98; the Stability part of the Wheel Score gives that 9 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 24 / 25 | 27% margin of safety | |
| Health | 9 / 20 | Piotroski 4/9 | |
| Moat | 5 / 15 | moat 3.6/10 | |
| Premium | 8 / 20 | implied volatility 23% | |
| Stability | 9 / 20 | 192k shares/day, $861M cap, beta 0.98 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score 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 |
|---|---|---|---|---|---|
| ASDVX American Century Short Duration Strategic Income Fund - Investor Class | 8.85 | 5.17 | -71% | 27No options | $867M |
| RNP Cohen & Steers REIT and Preferred Income Fund, Inc. | 18.18 | 35.77 | +49% | 39No options | $873M |
| ARSVX AMG River Road Small Cap Value Fund - Class N | 14.74 | 17.29 | +15% | 39No options | $876M |
| BTZ BlackRock Credit Allocation Income Trust | 9.43 | 25.55 | +63% | 39No options | $880M |
| TOPW Roundhill Investments - Top WeeklyPay ETF | 33.79 | 239.92 | +86% | 42Weak | $842M |
| HF DGA Core Plus Absolute Return ETF | 22.57 | 59.58 | +62% | 39No options | $884M |
| KBDC Kayne Anderson BDC, Inc. | 12.63 | 27.63 | +54% | 39No options | $834M |
| MYN BlackRock MuniYield New York Quality Fund, Inc. | 8.86 | 11.98 | +26% | 39No options | $834M |
| PDX Pimco Dynamic Income Strategy Fund | 19.89 | 86.93 | +77% | 39No options | $889M |
| ABINX American Century Balanced Fund | 22.10 | 5.60 | -295% | 18No options | $891M |
| ARBFX The Arbitrage Fund | 13.90 | 4.97 | -180% | 22No options | $893M |
| TISVX Transamerica International Sm Cp Val I | 18.97 | 49.95 | +62% | 39No options | $828M |
⚖ 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, moderately: at 25.77 the stock trades 27% below the average fair value of 35.51 (data as of 16 Oct 2026).
What is the Wheel Score of BAB and what does it mean?
BAB scores 56 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for BAB?
35.51 per share as of 16 Oct 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 16 Oct 2026; the Calendars page is refreshed every morning.
Does BAB have listed options, and how liquid are they?
Yes. The nightly snapshot found 110 listed contracts with 8 open interest across all expiries and implied volatility of 23% 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.