Bath & Body Works (Bath & Body Works) Intrinsic Value: Projected FCF : $38.95 (As of Apr. 24, 2024)

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What is Bath & Body Works Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-04-24), Bath & Body Works's Intrinsic Value: Projected FCF is $38.95. The stock price of Bath & Body Works is $45.60. Therefore, Bath & Body Works's Price-to-Intrinsic-Value-Projected-FCF of today is 1.2.

The historical rank and industry rank for Bath & Body Works's Intrinsic Value: Projected FCF or its related term are showing as below:

BBWI' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.63 Med: 1.2 Max: 1.87
Current: 1.17

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Bath & Body Works was 1.87. The lowest was 0.63. And the median was 1.20.

BBWI's Price-to-Projected-FCF is ranked worse than
66.3% of 721 companies
in the Retail - Cyclical industry
Industry Median: 0.8 vs BBWI: 1.17

Bath & Body Works Intrinsic Value: Projected FCF Historical Data

The historical data trend for Bath & Body Works's Intrinsic Value: Projected FCF 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.

* Premium members only.

Bath & Body Works Intrinsic Value: Projected FCF Chart

Bath & Body Works Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Intrinsic Value: Projected FCF

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29.78

38.37

38.83

37.77

38.95

Bath & Body Works Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Intrinsic Value: Projected FCF	Get a 7-Day Free Trial															37.77	28.10	29.02	28.46	38.95

Competitive Comparison of Bath & Body Works's Intrinsic Value: Projected FCF

For the Specialty Retail subindustry, Bath & Body Works's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF 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's Price-to-Projected-FCF Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Bath & Body Works's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Bath & Body Works's Price-to-Projected-FCF falls into.

Bath & Body Works Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)

Add all the Free Cash Flow together and divide 6 will get Bath & Body Works's Free Cash Flow(6 year avg) = $1,150.56.

Bath & Body Works's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF	=	(Growth Multiple	*	Free Cash Flow (6 year avg)	+	Total Stockholders Equity (Jan24)	/	0.8)	/	Shares Outstanding (Diluted Average)
	=	(9.5203515959648	*	1150.56	+	-1627	/	0.8)	/	229.000
	=	38.95

Bath & Body Works (NYSE:BBWI) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Bath & Body Works's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF	=	Share Price	/	Intrinsic Value: Projected FCF
	=	45.60	/	38.951902760931
	=	1.17

Bath & Body Works Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of Bath & Body Works's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.

Bath & Body Works (Bath & Body Works) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Bath & Body Works Inc (NYSE:BBWI) » Definitions » Intrinsic Value: Projected FCF

Comparable Companies

Traded in Other Exchanges

BBWI:Mexico LTD0:Germany B1BW34:Brazil

Address

Three Limited Parkway, Columbus, OH, USA, 43230

Website

https://www.bbwinc.com

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 less than 5% of sales from international markets in fiscal 2022. For fiscal 2022, 72% of sales stemmed from the brick-and-mortar network (which was composed of more than 1,800 retail stores), similar to 2021 levels, as consumer shopping patterns remained to normal. Future growth is expected from store reformatting, digital and international channels, as well as adjacent category expansion.

Executives

Eva C Boratto	officer: Chief Financial Officer	55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Wendy C. Arlin	officer: EVP and CFO	THREE LIMITED PARKWAY, COLUMBUS OH 43230
Thomas Kuhn	director	C/O INTERVAL LEISURE GROUP, INC., 6262 SUNSET DRIVE, MIAMI FL 33143
Steven E Voskuil	director	5405 WINDWARD PARKWAY, ALPHARETTA GA 30004
Lucy Brady	director	C/O BATH & BODY WORKS, INC., THREE LIMITED PARKWAY, COLUMBUS OH 43230
Gina Boswell	director, officer: Chief Executive Officer	MANPOWERGROUP INC., 100 MANPOWER PLACE, MILWAUKEE WI 53212
Thomas E. Mazurek	officer: Chief Supply Chain Officer	C/O BATH & BODY WORKS, INC., THREE LIMITED PARKWAY, COLUMBUS OH 43230
Alessandro Bogliolo	director	727 FIFTH AVENUE, NEW YORK NY 10022
Juan Rajlin	director	C/O BATH & BODY WORKS, INC., THREE LIMITED PARKWAY, COLUMBUS OH 43230
Robert H Schottenstein	director
Sarah E Nash	director	200 MILIK STREET, CARTERET NJ 07008
James L. Bersani	officer: EVP & President - Real Estate	THREE LIMITED PARKWAY, COLUMBUS OH 43230
Michael C. Wu	officer: Chief Legal Officer & Secy.	4 LIMITED PARKWAY, REYNOLDSBURG OH 43068
Christopher T. Cramer	officer: Chief Operating Officer	THREE LIMITED PARKWAY, COLUMBUS OH 43230
Leslie H. Wexner	director, 10 percent owner, officer: Chairman and CEO	8000 WALTON PKWY, STE 100, NEW ALBANY OH 43054