DCF Tool

BBBY

Bed, Bath & Beyond Inc. – All Other Home Furnishings Stores
Bed Bath & Beyond Inc. and subsidiaries (the 'Company') is an omnichannel retailer that makes it easy for its customers to feel at home. The Company sells a wide assortment of merchandise in the Home, Baby, Beauty and Wellness markets. Additionally, the Company is a partner in a joint venture which operates retail stores in Mexico under the name Bed Bath & Beyond.
Analysis Results
Intrinsic Value $10.14
Latest Price $3.33
Relative Value 67% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of -22.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -22.1%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 0.107 0.1
2024 0.0837 0.073
2025 0.0652 0.053
2026 0.0507 0.0385
2027 0.0395 0.028
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 0.789 billion. This corresponds to a present value of 0.522 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 0.293 billion. Adding in the terminal value gives a total present value of 0.815 billion.

There are presently 80.4 million outstanding shares, so the intrinsic value per share is 10.14.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,363,154,000
Current Cash 439,496,000
Current Liabilities 2,074,787,000
Current Debt 0
Non-Cash Working Capital (NCWC) -151,129,000
Change in NCWC 49,697,000
EBIT -208,801,000
Tax Provision 86,967,000
Depreciation and Amortization 293,626,000
Capital Expenditure -354,185,000
Unlevered Free Cash Flow -219,663,000
Current Assets 3,743,558,000
Current Cash 1,441,845,000
Current Liabilities 2,502,539,000
Current Debt 0
Non-Cash Working Capital (NCWC) -200,826,000
Change in NCWC -172,966,000
EBIT -269,711,000
Tax Provision -109,046,000
Depreciation and Amortization 343,417,000
Capital Expenditure -231,512,000
Unlevered Free Cash Flow -330,772,000
Current Assets 3,826,285,000
Current Cash 1,385,982,000
Current Liabilities 2,466,526,000
Current Debt 0
Non-Cash Working Capital (NCWC) -26,223,000
Change in NCWC -863,793,000
EBIT -190,838,000
Tax Provision -151,037,000
Depreciation and Amortization 342,511,000
Capital Expenditure -277,401,000
Unlevered Free Cash Flow -989,521,000
Current Assets 3,909,972,000
Current Cash 994,770,000
Current Liabilities 2,077,632,000
Current Debt 0
Non-Cash Working Capital (NCWC) 837,570,000
Change in NCWC -243,644,000
EBIT 422,770,000
Tax Provision -19,385,000
Depreciation and Amortization 338,825,000
Capital Expenditure -325,366,000
Unlevered Free Cash Flow 192,585,000
Current Assets 3,971,078,000
Current Cash 724,179,000
Current Liabilities 2,165,685,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,081,214,000
Change in NCWC -208,700,000
EBIT 761,321,000
Tax Provision 270,802,000
Depreciation and Amortization 313,107,000
Capital Expenditure -375,793,000
Unlevered Free Cash Flow 193,572,913
Current Assets 3,810,744,000
Current Cash 488,329,000
Current Liabilities 2,032,501,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,289,914,000
Change in NCWC -67,053,000
EBIT 1,135,210,000
Tax Provision 380,547,000
Depreciation and Amortization 290,914,000
Capital Expenditure -373,574,000
Unlevered Free Cash Flow 580,111,805
Current Assets 3,825,962,000
Current Cash 601,770,000
Current Liabilities 1,867,225,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,356,967,000
Change in NCWC 201,611,000
EBIT 1,414,903,000
Tax Provision 485,956,000
Depreciation and Amortization 273,947,000
Capital Expenditure -328,395,000
Unlevered Free Cash Flow 1,044,093,050
Current Assets 4,083,603,000
Current Cash 985,566,000
Current Liabilities 1,942,681,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,155,356,000
Change in NCWC 36,552,000
EBIT 1,554,293,000
Tax Provision 546,361,000
Depreciation and Amortization 239,193,000
Capital Expenditure -330,637,000
Unlevered Free Cash Flow 934,708,013
Current Assets 3,814,610,000
Current Cash 855,847,000
Current Liabilities 1,839,959,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,118,804,000
Change in NCWC -98,567,000
EBIT 1,614,587,000
Tax Provision 591,157,000
Depreciation and Amortization 218,809,000
Capital Expenditure -317,180,000
Unlevered Free Cash Flow 826,074,311

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.