Bed Bath & Beyond operates a chain of retail stores, offering a range of domestics merchandise, including bed linens and related items, bath items, kitchen textiles, home furnishings, fine tabletops, basic housewares, general home furnishings, and other merchandise. The company was founded in 1971 and is based in Union, New Jersey.
BBBY Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Bed Bath & Beyond Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Bed Bath & Beyond Inc ranked in the 18th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Bed Bath & Beyond Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is -14.12; that's higher than only 3.88% of US stocks in the Consumer Cyclical sector that have positive free cash flow.
Its compound free cash flow growth rate, as measured over the past 5.54 years, is -0.22% -- higher than merely 8.89% of stocks in our DCF forecasting set.
12% of the company's capital comes from equity, which is greater than only 6.53% of stocks in our cash flow based forecasting set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as BBBY, try ROL, GTX, NKE, TPCO, and ARD.