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BBBY - Bed Bath & Beyond Inc Fair Value Calculator

Earnings Per Share : $
  
Default value for Earning per Share (without none-recurring items) is the TTM GAAP earning. Use the information at right side to adjust.
Growth Rate In the Next:
Years : %
  
The number of years in the growth stage, and the average annual growth rate. The default value for the growth rate is the average Earings Per Share (eps) growth rate of the past 10 years. If this growth rate is high than 20% a year, it is set to 20%.
Business Predictability  
Terminal Growth Rate: %
  
After the growth stage, it is more reasonable to set the terminal growth rate at the inflation rate. The terminal growth rate must be smaller than the discount rate to make the calculation converge.
Years of Terminal Growth:
  
The number of years for terminal value calculation. The value after this is considered zero. Default is 10.
Discount Rate:
%
  
A reasonable discount rate assumption should be at least the long term average return of the stock market, which is about 11%, because investors can always invest passively in an index fund and get an average return. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 10% - 20%.
Tangible Book Value:
$
  
Default Book Value is the tangible book value, which may underestimate or overestimate the real value
Growth Value:
 
  
Cumulative earnings during the growth stage discounted to current using the discount rate.
Terminal Value:
 
  
Cumulative earnings during the terminal stage discounted to current using the discount rate.
= Fair Value:
 
  
Intrinsic Value = Future Earnings at Growth Stage + Terminal Value.
 
Margin Of Safety:
 

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User Comments

Pravchaw
ReplyPravchaw - 3 months ago
Could you please add back interest_expense and interest_income series to interactive chart. I'd like to construct a customized series for cash return - http://news.morningstar.com/classroom2/course.asp?docId=145100&page=10&CN=
Jlmay86
ReplyJlmay86 - 3 months ago
Current market price (59.35) showing that the market expects ONLY a 2% growth of BBBY's TTM EPS for the next 45 years (discounted 10%)... really?!
Chentao1006
ReplyChentao1006 - 4 months ago
test
Chentao1006
ReplyChentao1006 - 4 months ago
test
SEENSCO
ReplySEENSCO - 4 months ago
hahahah...that;s definitely not what we're talking about.

Our investment philosophy is consistent with that of Benjamin Graham in that we are seeking investments that offer safety of principal and exceptional returns.

When coverage is added on a company, we run it through a series of 7 "safety-first" screens. Only when a business passes these screens, or at least most of them, will it offer sufficient safety to qualify for investment. To read more about the screens please visit our website: www.seensco.com

Cheers
Gurufocus
ReplyGurufocus - 4 months ago
test
Svartholm
ReplySvartholm - 4 months ago
SEENSCO,
What's a safety-first screen? :) (BBBY actually sells a product called "safety 1st screen door saver" but i'll assume that's not what you're talking about)
SEENSCO
ReplySEENSCO - 4 months ago
Long-term earnings are well intact, great fundamentals, minimal balance sheet risk, and passes 6 of 7 "Safety-First Screens."
Ashimkar
ReplyAshimkar - 4 months ago
What is so exciting about this? Insiders are selling....
SEENSCO
ReplySEENSCO - 4 months ago
Thanks for this one Mr Market!



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