Bed Bath & Beyond Inc.

BBBY

Consumer CyclicalSpecialty RetailNYSE

$5.30

Market Cap: $391.87M

Bed Bath & Beyond Inc. (BBBY) Valuation Summary

Updated May 11, 2026 15:48

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$4.21 – $80.56	$19.78	+273.1%
Revenue DCF 10Y	$4.13 – $52.56	$14.37	+171.2%
▸ Trading Multiples
EV/Revenue	$21.55 – $40.44	$33.37	+529.6%

Valuation History

DCF Analysis

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

REVENUE DCF FAIR VALUE

$14.37

Market Price

$5.30

Upside / Downside

+171.2%

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 $14.37 per share (range: $4.13 – $52.56).

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	1,333	27.6%	-3.1%	-42	-42	99	(99)	4	-47	-45
2027	1,497	12.3%	-0.4%	-6	-6	111	(117)	-8	-5	-5
2028	1,570	4.9%	2.3%	36	36	116	(130)	-3	26	21
2029	1,629	3.8%	5.0%	81	81	120	(141)	-3	64	49
2030	1,694	4.0%	7.7%	131	131	125	(153)	-3	106	74
2031	1,525	-10.0%	7.7%	118	118	113	(144)	8	78	51
2032	1,372	-10.0%	7.7%	106	106	101	(135)	7	65	39
2033	1,245	-9.3%	7.7%	96	96	92	(128)	6	54	30
2034	1,181	-5.2%	7.7%	91	91	87	(126)	3	49	25
2035	1,168	-1.1%	7.7%	90	90	86	(129)	1	46	22

Enterprise Value Bridge

Sum of PV(FCFF)262

Terminal Value (Gordon Growth at 3.0%)939

PV of Terminal Value449

Enterprise Value711

(–) Net Debt-153

Equity Value864

(÷) Shares Outstanding60

Fair Value per Share$14.37

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.7%	4.7%	7.7%	10.7%	13.7%
6.1%	$-1	$7	$22	$37	$53
7.1%	$-1	$6	$17	$29	$40
8.1%	$-1	$5	$14	$24	$33
9.1%	$-0	$5	$12	$20	$28
10.1%	$-0	$4	$11	$18	$24

Current price: $5.30. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at -4.8% 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

$19.78

Market Price

$5.30

Upside / Downside

+273.1%

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	1,333	27.6%	-3.1%	-42	-42	99	(105)	4	-52	-50
2027	1,497	12.3%	-0.4%	-6	-6	111	(130)	-8	-17	-16
2028	1,570	4.9%	2.3%	36	36	116	(149)	-3	7	6
2029	1,629	3.8%	5.0%	81	81	120	(167)	-3	37	28
2030	1,694	4.0%	7.7%	131	131	125	(188)	-3	71	50

Enterprise Value Bridge

Sum of PV(FCFF)18

Terminal Value (Gordon Growth at 3.0%)1,444

PV of Terminal Value1,018

Enterprise Value1,036

(–) Net Debt-153

Equity Value1,189

(÷) Shares Outstanding60

Fair Value per Share$19.78

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.7%	4.7%	7.7%	10.7%	13.7%
6.1%	$-1	$10	$33	$57	$81
7.1%	$-1	$7	$25	$42	$60
8.1%	$-1	$6	$20	$34	$48
9.1%	$-1	$5	$16	$28	$39
10.1%	$-1	$4	$14	$24	$33

Current price: $5.30. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at -4.8% 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

$33.37

Market Price

$5.30

Upside / Downside

+529.6%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Bed Bath & Beyond Inc. (BBBY) has a fair value of $33.37 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	319	0.2x	0.1x
Caesars Entertainment, Inc.CZR	5,711	2.7x	2.8x
Brunswick CorporationBC	5,320	1.4x	1.5x
Choice Hotels International, Inc.CHH	4,849	4.3x	4.4x
Silgan Holdings Inc.SLGN	4,255	1.2x	1.3x
Travel + Leisure Co.TNL	4,114	2.2x	2.3x
Kontoor Brands, Inc.KTB	4,094	1.7x	1.7x
Bath & Body Works, Inc.BBWI	3,973	1.1x	1.1x
Advance Auto Parts, Inc.AAP	3,387	0.6x	0.6x
KB HomeKBH	3,100	0.7x	0.7x
RhRH	2,517	1.9x	2.0x
Industry Median		1.5x	1.6x
(*) Revenue		1,045	1,333
= Enterprise Value		1,602	2,104
(-) Net Debt		-153	-153
Equity Value		1,755	2,257
(/) Outstanding shares		60	60
Fair Price		$29	$38

Selected Fair Value (avg of trailing + forward)

$33.37

+529.6%

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

$4.21 – $80.56

$19.78

+273.1%

Revenue DCF 10Y

$4.13 – $52.56

$14.37

+171.2%

▸ Trading Multiples

EV/Revenue

$21.55 – $40.44

$33.37

+529.6%

DCF Analysis

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

REVENUE DCF FAIR VALUE

$14.37

Market Price

$5.30

Upside / Downside

+171.2%

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	1,333	27.6%	-3.1%	-42	-42	99	(99)	4	-47	-45
2027	1,497	12.3%	-0.4%	-6	-6	111	(117)	-8	-5	-5
2028	1,570	4.9%	2.3%	36	36	116	(130)	-3	26	21
2029	1,629	3.8%	5.0%	81	81	120	(141)	-3	64	49
2030	1,694	4.0%	7.7%	131	131	125	(153)	-3	106	74
2031	1,525	-10.0%	7.7%	118	118	113	(144)	8	78	51
2032	1,372	-10.0%	7.7%	106	106	101	(135)	7	65	39
2033	1,245	-9.3%	7.7%	96	96	92	(128)	6	54	30
2034	1,181	-5.2%	7.7%	91	91	87	(126)	3	49	25
2035	1,168	-1.1%	7.7%	90	90	86	(129)	1	46	22

Enterprise Value Bridge

Sum of PV(FCFF)262

Terminal Value (Gordon Growth at 3.0%)939

PV of Terminal Value449

Enterprise Value711

(–) Net Debt-153

Equity Value864

(÷) Shares Outstanding60

Fair Value per Share$14.37

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.7%	4.7%	7.7%	10.7%	13.7%
6.1%	$-1	$7	$22	$37	$53
7.1%	$-1	$6	$17	$29	$40
8.1%	$-1	$5	$14	$24	$33
9.1%	$-0	$5	$12	$20	$28
10.1%	$-0	$4	$11	$18	$24

Current price: $5.30. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at -4.8% 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

$33.37

Market Price

$5.30

Upside / Downside

+529.6%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Bed Bath & Beyond Inc. (BBBY) has a fair value of $33.37 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	319	0.2x	0.1x
Caesars Entertainment, Inc.CZR	5,711	2.7x	2.8x
Brunswick CorporationBC	5,320	1.4x	1.5x
Choice Hotels International, Inc.CHH	4,849	4.3x	4.4x
Silgan Holdings Inc.SLGN	4,255	1.2x	1.3x
Travel + Leisure Co.TNL	4,114	2.2x	2.3x
Kontoor Brands, Inc.KTB	4,094	1.7x	1.7x
Bath & Body Works, Inc.BBWI	3,973	1.1x	1.1x
Advance Auto Parts, Inc.AAP	3,387	0.6x	0.6x
KB HomeKBH	3,100	0.7x	0.7x
RhRH	2,517	1.9x	2.0x
Industry Median		1.5x	1.6x
(*) Revenue		1,045	1,333
= Enterprise Value		1,602	2,104
(-) Net Debt		-153	-153
Equity Value		1,755	2,257
(/) Outstanding shares		60	60
Fair Price		$29	$38

Selected Fair Value (avg of trailing + forward)

$33.37

+529.6%