Bath & Body WorksWBO:LBRA -4.01%62 Interest Coverage is 3.35 as of Apr. 2026, which is 16% below its 10-year median of 4.01. GuruFocus rates WBO:LBRA with a GF Score™ of 62/100 and a GF Value™ of €29.16 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 825 Retail - Cyclical companies, Bath & Body Works ranks worse than 66.79% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Bath & Body Works's
Operating Income
for the
three
months ended in Apr. 2026 was €198 Mil. Bath & Body Works's Interest Expense for the
three
months ended in Apr. 2026 was €-59 Mil.
Bath & Body Works's interest coverage for the quarter that ended in Apr. 2026 was 3.35.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Bath & Body Works's Interest Coverage or its related term are showing as below:
WBO:LBRA'
s Interest Coverage Range Over the Past 10 Years
Min: 2.81 Med: 4.01 Max: 5.18
Current: 4.21
WBO:LBRA's Interest Coverage is ranked worse than 66.79% of 825
companies
in the Retail - Cyclical industry
Industry Median: 7.96
vs WBO:LBRA: 4.21
Bath & Body Works (WBO:LBRA) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Bath & Body Works Interest Coverage Related Terms
Bath & Body Works Interest Coverage Historical Data
* Premium members only.
The historical data trend for Bath & Body Works's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
WBO:LBRA vs MNSO, RH, ASO: Interest Coverage Comparison
For the Specialty Retail subindustry, Bath & Body Works's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Bath & Body Works Interest Coverage vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Bath & Body Works's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Bath & Body Works's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Bath & Body Works (WBO:LBRA) has a Interest Coverage of 3.35 as of Apr. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Bath & Body Works and its competitors. This is 16% below median its historical median of 4.01. Over the past decade, Bath & Body Works' Interest Coverage has ranged from 2.81 to 5.18. According to the industry distribution chart, Bath & Body Works ranks #551 out of 825 companies in the Retail - Cyclical industry, placing it in the top 66.8%.
Is Bath & Body Works' Interest Coverage too high?
Bath & Body Works' current Interest Coverage of 3.35 is 16% below median its 10-year median of 4.01. Over the past 10 years, this metric has ranged from a low of 2.81 to a high of 5.18. The Retail - Cyclical industry median Interest Coverage is 7.96. Bath & Body Works' value of 3.35 is 57.9% below this industry median. Based on the distribution chart, Bath & Body Works ranks #551 out of 825 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Bath & Body Works has a GF Score™ of 62/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Bath & Body Works' Interest Coverage compare to MNSO and RH?
According to the Retail - Cyclical industry distribution chart, Bath & Body Works ranks #551 out of 825 companies for Interest Coverage. This places Bath & Body Works in the lower half of its industry. The industry median Interest Coverage is 7.96. Bath & Body Works' value of 3.35 is 57.9% below this benchmark. Historically, Bath & Body Works' own Interest Coverage has ranged from 2.81 to 5.18 over the past decade. While the company's 10-year median is 4.01 vs. the industry median of 7.96, Bath & Body Works has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.96, based on 825 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bath & Body Works's current Interest Coverage of 3.35 is 57.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Bath & Body Works and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bath & Body Works's current Interest Coverage is 3.35, which is 16% below median its own 10-year median of 4.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bath & Body Works stock overvalued right now?
Based on GuruFocus' analysis, Bath & Body Works (WBO:LBRA) is currently considered Significantly Undervalued. The stock's GF Value™ is €29.16, compared to a current price of €18.79 — trading 35.6% below its estimated fair value. The current Interest Coverage is 3.35, which is 16% below median its 10-year median of 4.01 and 57.9% below the Retail - Cyclical industry median of 7.96. Bath & Body Works' overall GF Score™ is 62/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Bath & Body Works (WBO:LBRA), the current Interest Coverage is 3.35 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Bath & Body Works (WBO:LBRA) Overvalued in 2026?
Based on GuruFocus' analysis, Bath & Body Works stock appears to be undervalued.
The current stock price of €18.79 is trading 35.6% below its estimated GF Value™ of €29.16.
GuruFocus considers Bath & Body Works to be Significantly Undervalued.
Key valuation signals for WBO:LBRA:
Interest Coverage: 3.35 (16% below median its 10-year median of 4.01)
GF Value™: €29.16 vs. price of €18.79 (35.6% below fair value)
Industry Position: 57.9% below the Retail - Cyclical median (#551 of 825)
No single metric tells the full story. See the WBO:LBRA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bath & Body Works is a specialty home fragrance and fragrant body care retailer operating under the Bath & Body Works, C.O. Bigelow, and White Barn brands. The company generates most of its business in North America, with just 4% of sales from international markets in fiscal 2025. For fiscal 2025, 77% of sales stemmed from the brick-and-mortar network of more than 1,900 retail stores, similar to 2024 levels, as consumer shopping patterns remained normal. Future growth is expected from store upgrades, digital and international channels, as well as adjacent category expansions like men's and lip.
62GF Score
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