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:
Below please find a table outlining a discounted cash flow forecast for BBBY, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Bed Bath & Beyond Inc ranked in the 22th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Bed Bath & Beyond Inc ended up being:
The company's balance sheet shows it gets 21% of its capital from equity, and 79% of its capital from debt. Its equity weight surpasses that of just 10.89% of free cash flow generating stocks in the Consumer Cyclical sector.
The company's compound free cash flow growth rate over the past 5.84 years comes in at -0.18%; that's greater than only 11.18% of US stocks we're applying DCF forecasting to.
Bed Bath & Beyond Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -10.81. This coverage rate is greater than that of merely 6.95% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ARD, CROX, ROL, GTX, and LUVU can be thought of as valuation peers to BBBY, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
LOS ANGELES, CA / ACCESSWIRE / June 6, 2020 / The Schall Law Firm , a national shareholder rights litigation firm, announces the filing of a class-action lawsuit against Bed Bath & Beyond Inc. ("Bed ...
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LOS ANGELES, CA / ACCESSWIRE / June 5, 2020 / The Schall Law Firm , a national shareholder rights litigation firm, announces the filing of a class-action lawsuit against Bed Bath & Beyond Inc. ("Bed ...