Bath & Body Works Valuation
Is BBWI * undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation 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 * (MX$722.08) is trading below our estimate of fair value (MX$1540.16)
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 *?
Key metric: As BBWI * is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is BBWI *'s PE Ratio? | |
|---|---|
| PE Ratio | 8.4x |
| Earnings | US$924.00m |
| Market Cap | US$7.78b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1.7x |
| Enterprise Value/EBITDA | 8.3x |
| PEG Ratio | 43.3x |
Price to Earnings Ratio vs Peers
How does BBWI *'s PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 12.5x | ||
GIGANTE * Grupo Gigante S. A. B. de C. V | 15.5x | n/a | Mex$26.8b |
LIVEPOL C-1 El Puerto de Liverpool. de | 6.2x | 5.1% | Mex$141.2b |
GSANBOR B-1 Grupo Sanborns. de | 12.8x | n/a | Mex$58.4b |
JD. JD Sports Fashion | 15.4x | 23.2% | UK£5.3b |
BBWI * Bath & Body Works | 8.4x | 0.2% | Mex$7.8b |
Price-To-Earnings vs Peers: BBWI * is good value based on its Price-To-Earnings Ratio (8.4x) compared to the peer average (12.4x).
Price to Earnings Ratio vs Industry
How does BBWI *'s PE Ratio compare vs other companies in the Global Specialty Retail Industry?
| 17 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 17 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: BBWI * is good value based on its Price-To-Earnings Ratio (8.4x) compared to the Global Specialty Retail industry average (16.3x).
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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 8.4x |
| Fair PE Ratio | n/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?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | Mex$722.08 | Mex$925.95 +28.2% | 21.1% | Mex$1,425.84 | Mex$648.24 | n/a | 19 |
| Nov ’25 | Mex$571.50 | Mex$869.51 +52.1% | 22.9% | Mex$1,341.07 | Mex$620.50 | n/a | 19 |
| Oct ’25 | Mex$595.00 | Mex$880.16 +47.9% | 22.1% | Mex$1,336.05 | Mex$618.17 | n/a | 20 |
| Sep ’25 | Mex$607.00 | Mex$874.03 +44.0% | 22.5% | Mex$1,319.28 | Mex$610.41 | n/a | 20 |
| Aug ’25 | n/a | Mex$962.04 0% | 14.5% | Mex$1,285.46 | Mex$716.18 | n/a | 20 |
| Jul ’25 | n/a | Mex$982.03 0% | 12.3% | Mex$1,292.43 | Mex$775.46 | n/a | 20 |
| Jun ’25 | n/a | Mex$872.38 0% | 13.1% | Mex$1,208.15 | Mex$695.10 | n/a | 20 |
| May ’25 | n/a | Mex$889.26 0% | 14.2% | Mex$1,251.70 | Mex$685.86 | n/a | 20 |
| Apr ’25 | n/a | Mex$861.77 0% | 14.2% | Mex$1,232.01 | Mex$675.08 | n/a | 20 |
| Mar ’25 | Mex$770.00 | Mex$858.22 +11.5% | 16.7% | Mex$1,327.45 | Mex$680.74 | n/a | 20 |
| Feb ’25 | Mex$712.00 | Mex$776.56 +9.1% | 22.9% | Mex$1,337.76 | Mex$514.52 | n/a | 20 |
| Jan ’25 | n/a | Mex$729.35 0% | 26.6% | Mex$1,324.62 | Mex$509.47 | n/a | 19 |
| Dec ’24 | Mex$565.66 | Mex$725.35 +28.2% | 29.9% | Mex$1,350.46 | Mex$432.84 | n/a | 19 |
| Nov ’24 | Mex$522.02 | Mex$861.56 +65.0% | 25.4% | Mex$1,417.14 | Mex$490.55 | Mex$571.50 | 19 |
| Oct ’24 | n/a | Mex$830.23 0% | 20.5% | Mex$1,311.73 | Mex$622.23 | Mex$595.00 | 19 |
| Sep ’24 | n/a | Mex$830.23 0% | 20.5% | Mex$1,311.73 | Mex$622.23 | Mex$607.00 | 19 |
| Aug ’24 | n/a | Mex$827.09 0% | 21.3% | Mex$1,315.18 | Mex$623.87 | n/a | 19 |
| Jul ’24 | n/a | Mex$866.98 0% | 21.6% | Mex$1,384.55 | Mex$656.78 | n/a | 19 |
| Jun ’24 | n/a | Mex$866.98 0% | 21.6% | Mex$1,384.55 | Mex$656.78 | n/a | 19 |
| May ’24 | n/a | Mex$910.57 0% | 22.6% | Mex$1,407.15 | Mex$631.41 | n/a | 19 |
| Apr ’24 | n/a | Mex$931.29 0% | 20.9% | Mex$1,411.22 | Mex$633.24 | n/a | 19 |
| Mar ’24 | n/a | Mex$965.66 0% | 18.8% | Mex$1,433.34 | Mex$735.04 | Mex$770.00 | 20 |
| Feb ’24 | Mex$798.99 | Mex$971.31 +21.6% | 21.1% | Mex$1,539.07 | Mex$732.00 | Mex$712.00 | 20 |
| Jan ’24 | n/a | Mex$1,004.68 0% | 21.7% | Mex$1,602.80 | Mex$762.31 | n/a | 20 |
| Dec ’23 | n/a | Mex$1,004.68 0% | 21.7% | Mex$1,602.80 | Mex$762.31 | Mex$565.66 | 20 |
| Nov ’23 | n/a | Mex$1,003.06 0% | 21.2% | Mex$1,633.58 | Mex$796.87 | Mex$522.02 | 20 |
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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