* Note: Prices are in Million (M) USD.
Description:
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $636 M
Debt : $4,982 M
EBITDA : $1,632 M
Net Debt (Debt - Cash): $4,346 M
Since Net Debt is covered by EBITDA within 3 years, 1 points assigned.
This criteria used industry in which company operates:
Sector: Consumer cyclical
Industry: Men's clothing stores
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 8.08
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $789 M
Average Revenue: $9,673 M
Revenue Converted To Free Cash Flow (%): 8.2%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-01-31): $7,307 M
Revenue 4 Years Ago (2021-01-31): $6,434 M
Last 5 Years Average Revenue Growth: 3%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-01-31): $221 M
Share Count 5 Years Ago (2021-01-31): $281 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $3.79
Trailing 12-Month Earnings Per Share (EPS): $3.44
Average Earnings Per Share (EPS): $3.62
Dividend Per Share (DPS): $1
Payout Ratio: 22%
Dividend Yield: 3%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 2, 2 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 8 valid ROE years (max 20).Average ROE: 822.4%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $29
52-Week Low: $25
Threshold Price (15% Above 52-Week Low): $28
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $6,226 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 24 points to above Bath & Body Works Inc. (BBWI) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• ROE Based PE
50.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 20 Years Avg P/E (16.44)
× EPS ($3.62) = $59.43.
Last 20 Years Avg PE 16.44, Fair Value PE 15, Industry Based PE 15, Growth Based PE 2, RCFC Based PE 16.53, ROE Based PE 50, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 18.86. Value-Trades has assined P/E value 18.86. Since an average (Current Year EPS + Next Year EPS) earning per share is $3.615.
The fair value of Bath & Body Works Inc. (BBWI) stock should be (18.86 x $3.615) = $68.2.
