Bath & Body Works Inc. (BBWI) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Bath & Body Works Inc. $47.54, price $17.02, upside +179.3%, quality 70 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 23, 2026.
How to read this chart
60‑month range $14.56 – $69.89 · fair‑value band $32.90 – $69.55 · the $17.02 price screens below the $47.54 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 23, 2026.
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Bath & Body Works, Inc. operates as a specialty retailer of personal care and home fragrance products. The company offers body and home fragrances, including 3-wick candles, home fragrance diffusers, fine fragrance mists, eau de parfum, body wash, hand soaps, body lotions, and body creams, as well as sanitizer and other products.
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Bath & Body Works, Inc. operates as a specialty retailer of personal care and home fragrance products. The company offers body and home fragrances, including 3-wick candles, home fragrance diffusers, fine fragrance mists, eau de parfum, body wash, hand soaps, body lotions, and body creams, as well as sanitizer and other products. It sells its products under the Bath & Body Works and other brand names through retail stores and e-commerce sites in the United States and Canada, as well as through international stores operated by partners under the franchise, license, and wholesale arrangements. The company was formerly known as L Brands, Inc. and changed its name to Bath & Body Works, Inc. in August 2021. Bath & Body Works, Inc. was founded in 1963 and is headquartered in Columbus, Ohio.
Stock analysis
Bath & Body Works Inc. (BBWI) currently trades at $17.02, while our model-based Fair Value estimate is $47.54, implying the stock looks roughly 64.2% undervalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $68.97 per share, and 19 of the 21 models we run sit above the $17.02 price.
Bear case: the Dividend Discount group reads lowest at $8.65, and 2 of the 21 models stay below the price. Evidence for this calculation is medium.
Scenario range: $32.90 (bear) to $69.55 (bull), the price of $17.02 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 70/100 (solid quality), in the Consumer Cyclical sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Bath & Body Works Inc. reported revenue of $7.3B in FY2026 versus $7.9B in FY2022, a compound −1.9%/yr. Reported net income was $649M in FY2026, compounding −16.5%/yr from FY2022.
Key figures
Market cap $4.1B · P/E ratio 4.8 · P/S ratio 0.43 · EPS (TTM) $3.52 · Dividend yield 4.7% · Net margin 8.9% · Return on assets (EBIT) 26.0% · Operating margin 11.0%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 42 out of 100 (low confidence).
What moves the price
The share trades about 48% below its 52-week high and 22% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −1% fair-value upside, at 179%, BBWI screens cheaper than that median.
Fair Value models
Bear $32.90Fair Value $47.54Bull $69.55
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2026 figures (about 8 months old). Earnings retained since then ($1.77 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.62/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
−0.2%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−1.2%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.5%
Start year 2021 (pandemic). Over 10 years: −5.0% a year
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.8%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+5.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year+0.4%
Dividend (yield on the price)4.7%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−5% vs −3%, steady
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.25% → 15%
Start year 2021 (pandemic)
⚠ Revenue per share shrinking 1.5%/yr over ~10Y (margins intact) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−6.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+1.0%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −8.3% a year for the price and −1.3% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (96 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Specialty Retail · 226 stocks
Beats the industry median on 9/12 measures
Overall it ranks above its industry peers.
Valuation
Quality Score70 · Top 25%
Fair Value upside+177% · Top 25%
Profitability
Return on equity (TTM)Negative equity ⓘThe company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.
Return on assets14% · Top 25%
Net margin (TTM)10% · Top 25%
Operating margin (TTM)11% · Top 25%
Growth and dividend
Revenue growth−3% · Bottom 25%
Dividend yield (TTM)4.7% · Above median
Balance sheet
Debt / equityNegative equity ⓘThe company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.
Valuation Multiplesvs Specialty Retail median · lower = cheaper
P/E (TTM)4.8× · Cheapest 25%
P/BNegative equity ⓘThe company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.
P/S (TTM)0.57× · Pricier than median
P/FCF4.8× · Pricier than median
EV/EBITDA5.0× · Cheaper than median
PEG0.79× · Cheaper than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)100· sector 45
FUTURE (revenue growth)0· sector 25
PAST (return on equity)0· sector 27
HEALTH (low debt)0· sector 95
DIVIDEND (yield)94· sector 62
PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.
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Cite: Fair Value Calculator (2026). "Bath & Body Works Inc. Fair Value". https://www.fairvalue-calculator.com/stock/BBWI
Frequently asked questions
Is Bath & Body Works Inc. (BBWI) overvalued or undervalued?
As of Sep 23, 2026, our model estimates a fair value of $47.54 versus a price of $17.02, about +179% upside (undervalued).
What is the fair value of BBWI?
Our model-based fair value for Bath & Body Works Inc. is $47.54 (as of Sep 23, 2026), built from audited fundamentals. The current price: $17.02.
What is the quality score of BBWI?
Bath & Body Works Inc. has a Quality Score of 70/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Bath & Body Works Inc. (BBWI)?
Our model-based price target is the fair value of $47.54 (as of Sep 23, 2026) from 21 valuation models. Cautious scenario $32.90, optimistic scenario $69.55. It is a calculation from audited fundamentals, not an analyst target.
What is the Bath & Body Works Inc. stock forecast for 2026?
Our models put fair value at $47.54, about +179% upside versus a price of $17.02 (undervalued). Cautious scenario $32.90, optimistic scenario $69.55. The calculation is refreshed regularly with new filings.
What is the revenue of Bath & Body Works Inc. (BBWI)?
Bath & Body Works Inc. reported trailing-twelve-month revenue of about $7.2B (latest available figure, as of Sep 23, 2026).
Does Bath & Body Works Inc. pay a dividend?
Bath & Body Works Inc. currently shows a dividend yield of about 4.70% relative to its recent price (as of Sep 23, 2026).
What growth is priced into Bath & Body Works Inc. (BBWI)?
For today's price to be fair in a discounted-cash-flow model, Bath & Body Works Inc. would have to grow free cash flow by -6.2 % per year for five years (discount rate 10.7 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +2.5 % per year. As of Sep 23, 2026.
What discount rate (WACC) does the fair value of BBWI use?
Our models discount Bath & Body Works Inc. at 10.7 %: a base by market capitalisation (mid), damped by beta 1.39, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Bath & Body Works Inc. that is -6.2 % per year a year over ten years, using the same discount rate (10.7 %) and the same formula as our fair value.
How much growth has Bath & Body Works Inc. (BBWI) delivered so far?
Over the past 5 years revenue at Bath & Body Works Inc. grew +2.5 % a year. The price currently implies -6.2 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Bath & Body Works Inc. (BBWI) growing?
The median revenue growth in the sector is +2.5 % a year. That is the yardstick for the growth priced into Bath & Body Works Inc. (-6.2 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Bath & Body Works Inc. (BBWI)?
The free-cash-flow yield on the price is 24.02 %: that much free cash flow Bath & Body Works Inc. produces per unit of market value. When it exceeds the discount rate of our models (10.7 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Bath & Body Works Inc. (BBWI)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Bath & Body Works Inc. it is $47.54 per share (as of Sep 23, 2026), against a price of $17.02. It is the blended result of 21 valuation models (cash flow, earnings, asset, dividend).
Is Bath & Body Works Inc. stock overvalued or undervalued in 2026?
As of Sep 23, 2026, BBWI trades below its calculated fair value: price $17.02, fair value $47.54, a gap of about +179% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of BBWI?
No. The price is what the market pays today ($17.02); the fair value is what the company's own numbers justify ($47.54). For Bath & Body Works Inc. the two are $30.52 per share apart. That gap is exactly why we show both numbers side by side.
How much is Bath & Body Works Inc. worth?
The market values Bath & Body Works Inc. at about $4.1B (market capitalisation, as of Sep 23, 2026). Per share that is $17.02; our models calculate a fair value of $47.54 per share.
What do the bullish and bearish scenarios say about BBWI?
Our models span a range for Bath & Body Works Inc.: cautious scenario $32.90, base $47.54, optimistic $69.55 per share (as of Sep 23, 2026, price $17.02). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of BBWI?
Bath & Body Works Inc. trades at a price-to-earnings ratio of 4.8 (as of Sep 23, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $47.54 is built from several models across several years. Other multiples: PEG 0.8, P/S 0.6, EV/EBITDA 5.0.
What is the PEG ratio of BBWI?
The PEG ratio of Bath & Body Works Inc. is 0.79 (P/E divided by earnings growth, as of Sep 23, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Bath & Body Works Inc. (BBWI)?
Balance-sheet figures for Bath & Body Works Inc. (as of Sep 23, 2026): negative equity, so no return on equity and no debt-to-equity ratio. They feed the Quality Score of 70/100, which measures business quality independently of the share price.
How far is BBWI from its 52-week high?
Bath & Body Works Inc. trades at $17.02, about 48% below its 52-week high of $32.66 and 22% above the low of $14.00 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of $47.54 is for.
Which stocks are comparable to Bath & Body Works Inc.?
From the same area (Consumer Cyclical) we also value Alimentation Couche-Tard Inc, Casey's General Stores, Inc, Williams-Sonoma, Inc, Ulta Beauty, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Bath & Body Works Inc. stock attractive at the current price?
The data as of Sep 23, 2026: price $17.02, calculated fair value $47.54 (+179%), Quality Score 70/100, from 21 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of BBWI calculated?
We run Bath & Body Works Inc. through 21 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $47.54, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.1 % above its aggregate fair value. Bath & Body Works Inc. currently trades 179 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Bath & Body Works Inc. (BBWI)?
The closing price on Sep 23, 2026 was $17.02. Our model-based fair value is $47.54, about +179% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Bath & Body Works Inc. right now?
The rarer combination: high quality (70/100) AND below fair value. That earns a closer look rather than a quick verdict. The price is below even our cautious bear case ($32.90). The market is more pessimistic than our downside scenario. A fairly wide model range ($32.90 to $69.55) leaves room in how you read the outcome.
Where does the earnings growth of Bath & Body Works Inc. (BBWI) come from?
Earnings per share at Bath & Body Works Inc. grew −1.1 % a year from 2015 to 2026. Broken into its drivers: revenue per share −2.2 %, EBIT margin −0.2 %, tax rate +2.1 %, residual (interest, one-offs) −0.8 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Bath & Body Works Inc.
How large is the market capitalisation of Bath & Body Works Inc. (BBWI)?
The market capitalisation of Bath & Body Works Inc. is $4.1B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Bath & Body Works Inc. (BBWI)?
The price-to-sales ratio of Bath & Body Works Inc. is 0.43 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Bath & Body Works Inc. (BBWI)?
Earnings per share at Bath & Body Works Inc. are $3.52 (price ÷ EPS = P/E 4.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Bath & Body Works Inc. (BBWI)?
The dividend yield of Bath & Body Works Inc. is 4.7% (payout 22.7%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Bath & Body Works Inc. (BBWI)?
The net margin of Bath & Body Works Inc. is 8.9% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the EBIT return on assets of Bath & Body Works Inc. (BBWI)?
On an EBIT basis the return on assets of Bath & Body Works Inc. is 26.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Bath & Body Works Inc. (BBWI)?
The operating margin of Bath & Body Works Inc. is 11.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Bath & Body Works Inc. (BBWI)?
Revenue at Bath & Body Works Inc. is growing −3.2% versus a year earlier (3y avg −1.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Bath & Body Works Inc. (BBWI)?
Earnings per share at Bath & Body Works Inc. are growing +83.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Bath & Body Works Inc. (BBWI) carry?
The net debt of Bath & Body Works Inc. is $4.0B (fiscal year 2026, ≈ 4.6 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Some data
Sep 23, 2026