TBH

We rate Brag House Holdings, Inc. (TBH) as Avoid with a composite score of 31.4/100 at a current price of $0.26. The stock falls in the bottom quintile of our universe across key quantitative factors, and the multi-factor weakness suggests a high probability of continued underperformance.

The rating is primarily driven by strength in value (53th percentile) and stability (27th percentile), which together account for the majority of the composite score. Offsetting weakness in momentum (14th percentile) and quality (25th percentile) tempers our overall conviction. We assign a Narrow Moat rating (44/100), High uncertainty, and Exemplary capital allocation.

Key items to watch: momentum to confirm whether the current price trend has legs. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

Brag House Holdings, Inc. holds a top-quartile position (#0 of 50) within the Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 31.4/100 places it at rank #4429 in our full 7,333-stock universe. At $41M in market capitalization, Brag House Holdings, Inc. is a small-cap player in the Services space, which limits certain scale advantages but may allow for more agile strategic execution.

Momentum indicators (14th percentile) suggest caution regarding the near-term price trend. Revenue growth data is unavailable, limiting our ability to confirm whether momentum is fundamentally supported.

Margin data is not available for Brag House Holdings, Inc., which limits our assessment of the company's cost structure and operating efficiency. We rely on factor-based signals to infer business quality in the absence of detailed margin data.

At a current price of $0.26, Brag House Holdings, Inc. is trading near fair value based on current fundamentals. Our value factor score of 53/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.

The stock currently trades at a P/E of 1.2x (a 95% discount to the sector median of 23.7x), EV/EBITDA of 4.1x (discounted to peers), P/B of 0.4x. The below-sector P/E suggests possible undervaluation or the market pricing in near-term headwinds.

We assign a High uncertainty rating to Brag House Holdings, Inc.. Key risk factors include below-average price stability (27th percentile), weak quality scores (25th percentile). The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.

Specific risk factors that inform our assessment include: below-average price stability (27th percentile); weak quality scores (25th percentile). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 27th percentile and quality factor at the 25th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: conservative leverage (10% D/E) limits balance sheet risk. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile warrants caution and disciplined position management.

We rate Brag House Holdings, Inc.'s capital allocation as Exemplary. Management demonstrates a strong track record of balancing reinvestment with shareholder returns, evidenced by returns on equity of 61.2%, disciplined leverage (10% D/E). Exemplary allocators typically generate returns on equity above 20% while maintaining debt-to-equity below 50% — Brag House Holdings, Inc. meets this high bar.

The balance sheet remains conservatively managed, providing financial flexibility for opportunistic investments while maintaining a margin of safety for shareholders. We note that the combination of 55.8% return on assets and controlled leverage suggests management is deploying capital at rates well above the cost of capital — the hallmark of exemplary stewardship.

In summary, Brag House Holdings, Inc. receives a Avoid rating with a composite score of 31.4/100 (rank #4429 of 7,333). Our quantitative framework assigns a Narrow Moat (44/100, trend: stable), High uncertainty, and Exemplary capital allocation. The average factor score across quality, value, momentum, stability, and investment is 29/100.

Our analysis does not support a constructive view on Brag House Holdings, Inc. at this time. The combination of the current quantitative profile, high uncertainty, and exemplary capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.