Bed Bath & Beyond Inc.

BBBY

Consumer CyclicalSpecialty RetailNYSE

$4.73

Market Cap: $349.73M

Bed Bath & Beyond Inc. (BBBY) Valuation Summary

Updated Apr 28, 2026 22:22

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$3.47 – $63.02	$15.62	+229.6%
Revenue DCF 10Y	$3.47 – $41.34	$11.50	+142.5%
▸ Trading Multiples
EV/Revenue	$21.31 – $40.08	$31.01	+554.2%

Valuation History

DCF Analysis

Bed Bath & Beyond Inc. (BBBY) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$11.50

Market Price

$4.73

Upside / Downside

+143.1%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -5.9% to a target of 7.7% over 5 years, discounted at a WACC of 8.1%, Bed Bath & Beyond Inc. (BBBY) has an intrinsic value of $11.50 per share (range: $3.47 – $41.34).

Key Assumptions

Current Operating Margin

-5.9%

Target Operating Margin

7.7%

WACC

8.1%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

7.0%

Target CapEx/Rev

11.1%

D&A/Revenue

7.4%

Tax Rate

0.0%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	1,189	13.8%	-3.1%	-37	-37	88	(88)	8	-46	-44
2027	1,284	7.9%	-0.4%	-6	-6	95	(101)	-4	-7	-6
2028	1,396	8.8%	2.3%	32	32	103	(115)	-5	25	21
2029	1,264	-9.5%	5.0%	63	63	93	(109)	6	41	31
2030	1,314	4.0%	7.7%	101	101	97	(119)	-2	82	58
2031	1,183	-10.0%	7.7%	91	91	87	(112)	6	61	40
2032	1,065	-10.0%	7.7%	82	82	79	(105)	6	50	30
2033	966	-9.3%	7.7%	75	75	71	(99)	5	42	23
2034	916	-5.2%	7.7%	71	71	68	(98)	2	38	20
2035	906	-1.1%	7.7%	70	70	67	(100)	0	36	17

Enterprise Value Bridge

Sum of PV(FCFF)189

Terminal Value (Gordon Growth at 3.0%)729

PV of Terminal Value349

Enterprise Value538

(–) Net Debt-153

Equity Value691

(÷) Shares Outstanding60

Fair Value per Share$11.50

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.7%	4.7%	7.7%	10.7%	13.7%
6.1%	$-0	$6	$18	$29	$41
7.1%	$-0	$5	$14	$23	$32
8.1%	$-0	$4	$12	$19	$26
9.1%	$-0	$4	$10	$16	$22
10.1%	$-0	$3	$9	$14	$20

Current price: $4.73. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at -4.7% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Bed Bath & Beyond Inc. (BBBY) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$15.62

Market Price

$4.73

Upside / Downside

+230.2%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-5.9%

Target Operating Margin

7.7%

WACC

8.1%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

7.0%

Target CapEx/Rev

11.1%

D&A/Revenue

7.4%

Tax Rate

0.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	1,189	13.8%	-3.1%	-37	-37	88	(93)	8	-51	-49
2027	1,284	7.9%	-0.4%	-6	-6	95	(111)	-4	-17	-15
2028	1,396	8.8%	2.3%	32	32	103	(132)	-5	8	7
2029	1,264	-9.5%	5.0%	63	63	93	(130)	6	21	16
2030	1,314	4.0%	7.7%	101	101	97	(146)	-2	55	39

Enterprise Value Bridge

Sum of PV(FCFF)-3

Terminal Value (Gordon Growth at 3.0%)1,120

PV of Terminal Value789

Enterprise Value786

(–) Net Debt-153

Equity Value940

(÷) Shares Outstanding60

Fair Value per Share$15.62

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.7%	4.7%	7.7%	10.7%	13.7%
6.1%	$-1	$8	$26	$45	$63
7.1%	$-1	$6	$20	$33	$47
8.1%	$-1	$5	$16	$27	$37
9.1%	$-1	$4	$13	$22	$31
10.1%	$-0	$3	$11	$19	$26

Current price: $4.73. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at -4.7% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$32.87

Market Price

$4.73

Upside / Downside

+594.8%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Bed Bath & Beyond Inc. (BBBY) has a fair value of $32.87 based on 10 comparable companies in the Specialty Retail industry.

EV/Revenue Valuation — Specialty Retail

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Bed Bath & Beyond Inc.BBBY	284	0.1x	0.1x
Caesars Entertainment, Inc.CZR	5,562	2.7x	2.8x
Choice Hotels International, Inc.CHH	5,489	4.7x	4.8x
Brunswick CorporationBC	5,203	1.4x	1.4x
Silgan Holdings Inc.SLGN	4,098	1.2x	1.3x
Travel + Leisure Co.TNL	4,033	2.2x	2.3x
Kontoor Brands, Inc.KTB	4,006	1.6x	1.7x
Bath & Body Works, Inc.BBWI	3,874	1.1x	1.1x
Advance Auto Parts, Inc.AAP	3,415	0.6x	0.6x
KB HomeKBH	3,409	0.8x	0.7x
RhRH	2,504	1.9x	2.0x
Industry Median		1.5x	1.6x
(*) Revenue		1,045	1,333
= Enterprise Value		1,576	2,070
(-) Net Debt		-153	-153
Equity Value		1,729	2,223
(/) Outstanding shares		60	60
Fair Price		$29	$37

Selected Fair Value (avg of trailing + forward)

$32.87

+594.8%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$3.47 – $63.02

$15.62

+229.6%

Revenue DCF 10Y

$3.47 – $41.34

$11.50

+142.5%

▸ Trading Multiples

EV/Revenue

$21.31 – $40.08

$31.01

+554.2%

DCF Analysis

Bed Bath & Beyond Inc. (BBBY) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$11.50

Market Price

$4.73

Upside / Downside

+143.1%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-5.9%

Target Operating Margin

7.7%

WACC

8.1%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

7.0%

Target CapEx/Rev

11.1%

D&A/Revenue

7.4%

Tax Rate

0.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	1,189	13.8%	-3.1%	-37	-37	88	(88)	8	-46	-44
2027	1,284	7.9%	-0.4%	-6	-6	95	(101)	-4	-7	-6
2028	1,396	8.8%	2.3%	32	32	103	(115)	-5	25	21
2029	1,264	-9.5%	5.0%	63	63	93	(109)	6	41	31
2030	1,314	4.0%	7.7%	101	101	97	(119)	-2	82	58
2031	1,183	-10.0%	7.7%	91	91	87	(112)	6	61	40
2032	1,065	-10.0%	7.7%	82	82	79	(105)	6	50	30
2033	966	-9.3%	7.7%	75	75	71	(99)	5	42	23
2034	916	-5.2%	7.7%	71	71	68	(98)	2	38	20
2035	906	-1.1%	7.7%	70	70	67	(100)	0	36	17

Enterprise Value Bridge

Sum of PV(FCFF)189

Terminal Value (Gordon Growth at 3.0%)729

PV of Terminal Value349

Enterprise Value538

(–) Net Debt-153

Equity Value691

(÷) Shares Outstanding60

Fair Value per Share$11.50

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.7%	4.7%	7.7%	10.7%	13.7%
6.1%	$-0	$6	$18	$29	$41
7.1%	$-0	$5	$14	$23	$32
8.1%	$-0	$4	$12	$19	$26
9.1%	$-0	$4	$10	$16	$22
10.1%	$-0	$3	$9	$14	$20

Current price: $4.73. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at -4.7% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$32.87

Market Price

$4.73

Upside / Downside

+594.8%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Bed Bath & Beyond Inc. (BBBY) has a fair value of $32.87 based on 10 comparable companies in the Specialty Retail industry.

EV/Revenue Valuation — Specialty Retail

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Bed Bath & Beyond Inc.BBBY	284	0.1x	0.1x
Caesars Entertainment, Inc.CZR	5,562	2.7x	2.8x
Choice Hotels International, Inc.CHH	5,489	4.7x	4.8x
Brunswick CorporationBC	5,203	1.4x	1.4x
Silgan Holdings Inc.SLGN	4,098	1.2x	1.3x
Travel + Leisure Co.TNL	4,033	2.2x	2.3x
Kontoor Brands, Inc.KTB	4,006	1.6x	1.7x
Bath & Body Works, Inc.BBWI	3,874	1.1x	1.1x
Advance Auto Parts, Inc.AAP	3,415	0.6x	0.6x
KB HomeKBH	3,409	0.8x	0.7x
RhRH	2,504	1.9x	2.0x
Industry Median		1.5x	1.6x
(*) Revenue		1,045	1,333
= Enterprise Value		1,576	2,070
(-) Net Debt		-153	-153
Equity Value		1,729	2,223
(/) Outstanding shares		60	60
Fair Price		$29	$37

Selected Fair Value (avg of trailing + forward)

$32.87

+594.8%