Bath & Body Works Valuation

Is BBWI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BBWI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BBWI (€30.1) is trading below our estimate of fair value (€103.45)

Significantly Below Fair Value: BBWI is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for BBWI?

Other financial metrics that can be useful for relative valuation.

BBWI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.6x
Enterprise Value/EBITDA7.6x
PEG Ratio-13.7x

Price to Earnings Ratio vs Peers

How does BBWI's PE Ratio compare to its peers?

The above table shows the PE ratio for BBWI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.9x
SIG Signet Jewelers
9.3x9.4%US$4.4b
JD. JD Sports Fashion
20.9x24.5%UK£7.2b
1929 Chow Tai Fook Jewellery Group
11x7.7%HK$71.4b
FIVE Five Below
18.6x5.1%US$5.2b
BBWI Bath & Body Works
7.5x-0.5%€7.0b

Price-To-Earnings vs Peers: BBWI is good value based on its Price-To-Earnings Ratio (7.5x) compared to the peer average (14.9x).


Price to Earnings Ratio vs Industry

How does BBWI's PE Ratio compare vs other companies in the European Specialty Retail Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: BBWI is good value based on its Price-To-Earnings Ratio (7.5x) compared to the European Specialty Retail industry average (17x).


Price to Earnings Ratio vs Fair Ratio

What is BBWI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BBWI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate BBWI's Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst BBWI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€29.21
€38.94
+33.3%
22.9%€60.65€28.06n/a20
Oct ’25€27.95
€39.83
+42.5%
22.1%€60.46€27.97n/a20
Sep ’25€27.59
€40.16
+45.6%
22.5%€60.62€28.05n/a20
Aug ’25€32.86
€48.34
+47.1%
14.5%€64.59€35.99n/a20
Jul ’25€35.81
€49.69
+38.8%
12.3%€65.40€39.24n/a20
Jun ’25€46.83
€48.54
+3.6%
13.1%€67.22€38.67n/a20
May ’25€42.80
€48.48
+13.3%
14.2%€68.24€37.39n/a20
Apr ’25€46.20
€46.64
+1.0%
14.2%€66.68€36.54n/a20
Mar ’25€43.00
€46.54
+8.2%
16.7%€71.98€36.91n/a20
Feb ’25€39.40
€41.71
+5.9%
22.9%€71.85€27.64n/a20
Jan ’25€39.00
€38.89
-0.3%
26.6%€70.64€27.17n/a19
Dec ’24€30.80
€38.18
+24.0%
29.9%€71.09€22.79n/a19
Nov ’24€28.00
€44.92
+60.4%
25.4%€73.88€25.57n/a19
Oct ’24€32.40
€45.68
+41.0%
20.5%€72.17€34.24€27.9519
Sep ’24€34.00
€45.68
+34.4%
20.5%€72.17€34.24€27.5919
Aug ’24€33.60
€44.66
+32.9%
21.3%€71.02€33.69€32.8619
Jul ’24€34.60
€45.21
+30.7%
21.6%€72.20€34.25€35.8119
Jun ’24€33.00
€45.21
+37.0%
21.6%€72.20€34.25€46.8319
May ’24€32.00
€46.07
+44.0%
22.6%€71.20€31.95€42.8019
Apr ’24€33.60
€47.20
+40.5%
20.9%€71.52€32.09€46.2019
Mar ’24€37.28
€49.54
+32.9%
18.8%€73.53€37.71€43.0020
Feb ’24€42.50
€47.71
+12.3%
21.1%€75.60€35.95€39.4020
Jan ’24€38.58
€50.18
+30.1%
21.7%€80.05€38.07€39.0020
Dec ’23€41.21
€50.18
+21.8%
21.7%€80.05€38.07€30.8020
Nov ’23€34.27
€51.05
+49.0%
21.2%€83.14€40.56€28.0020
Oct ’23€34.16
€53.47
+56.5%
20.9%€85.47€41.69€32.4020

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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