BBWI Valuation

Bath & Body Works Inc

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31.560

+0.13(0.414%)1D

Overview
Forecast
Valuation
Earnings

BBWI Relative Valuation

BBWI's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, BBWI is overvalued; if below, it's undervalued.

Historical Valuation

Bath & Body Works Inc (BBWI) is now in the Undervalued zone, suggesting that its current forward PE ratio of 8.86 is considered Undervalued compared with the five-year average of 12.72. The fair price of Bath & Body Works Inc (BBWI) is between 52.28 to 68.32 according to relative valuation methord. Compared to the current price of 31.56 USD , Bath & Body Works Inc is Undervalued By 39.63%.

Relative Value

Fair Zone

52.28-68.32

Current Price：31.56

39.63%

Undervalued

8.86

Trailing

Forward

7.21

EV/EBITDA

Bath & Body Works Inc. (BBWI) has a current EV/EBITDA of 7.21. The 5-year average EV/EBITDA is 9.36. The thresholds are as follows: Strongly Undervalued below 6.36, Undervalued between 6.36 and 7.86, Fairly Valued between 10.86 and 7.86, Overvalued between 10.86 and 12.36, and Strongly Overvalued above 12.36. The current Forward EV/EBITDA of 7.21 falls within the Undervalued range.

8.74

EV/EBIT

Bath & Body Works Inc. (BBWI) has a current EV/EBIT of 8.74. The 5-year average EV/EBIT is 11.30. The thresholds are as follows: Strongly Undervalued below 7.56, Undervalued between 7.56 and 9.43, Fairly Valued between 13.16 and 9.43, Overvalued between 13.16 and 15.03, and Strongly Overvalued above 15.03. The current Forward EV/EBIT of 8.74 falls within the Undervalued range.

0.89

Bath & Body Works Inc. (BBWI) has a current PS of 0.89. The 5-year average PS is 1.35. The thresholds are as follows: Strongly Undervalued below 0.27, Undervalued between 0.27 and 0.81, Fairly Valued between 1.89 and 0.81, Overvalued between 1.89 and 2.43, and Strongly Overvalued above 2.43. The current Forward PS of 0.89 falls within the Historic Trend Line -Fairly Valued range.

6.35

P/OCF

Bath & Body Works Inc. (BBWI) has a current P/OCF of 6.35. The 5-year average P/OCF is 10.37. The thresholds are as follows: Strongly Undervalued below 2.36, Undervalued between 2.36 and 6.37, Fairly Valued between 14.38 and 6.37, Overvalued between 14.38 and 18.38, and Strongly Overvalued above 18.38. The current Forward P/OCF of 6.35 falls within the Undervalued range.

7.74

P/FCF

Bath & Body Works Inc. (BBWI) has a current P/FCF of 7.74. The 5-year average P/FCF is 13.14. The thresholds are as follows: Strongly Undervalued below 3.14, Undervalued between 3.14 and 8.14, Fairly Valued between 18.13 and 8.14, Overvalued between 18.13 and 23.13, and Strongly Overvalued above 23.13. The current Forward P/FCF of 7.74 falls within the Undervalued range.

Bath & Body Works Inc (BBWI) has a current Price-to-Book (P/B) ratio of -4.61. Compared to its 3-year average P/B ratio of -4.33 , the current P/B ratio is approximately 6.48% higher. Relative to its 5-year average P/B ratio of -8.09, the current P/B ratio is about -42.99% higher. Bath & Body Works Inc (BBWI) has a Forward Free Cash Flow (FCF) yield of approximately 11.69%. Compared to its 3-year average FCF yield of 9.18%, the current FCF yield is approximately 27.45% lower. Relative to its 5-year average FCF yield of 10.23% , the current FCF yield is about 14.28% lower.

-4.61

P/B

Median3y

-4.33

Median5y

-8.09

11.69

FCF Yield

Median3y

9.18

Median5y

10.23

Competitors Valuation Multiple

The average P/S ratio for BBWI's competitors is 0.50, providing a benchmark for relative valuation. Bath & Body Works Inc Corp (BBWI) exhibits a P/S ratio of 0.89, which is 79.50% above the industry average. Given its robust revenue growth of 2.89%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

BBWI.N

Bath & Body Works Inc

Performance Decomposition

Market capitalization of BBWI decreased by 12.62% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 6.29 to 7.37.

The secondary factor is the Revenue Growth, contributed 2.89%to the performance.

Overall, the performance of BBWI in the past 1 year is driven by Margin Expansion. Which is more sustainable.

2.89%

1.38B → 1.42B

Revenue Growth

17.17%

6.29 → 7.37

Margin Expansion

-32.68%

12.52 → 8.43

P/E Change

-12.62%