Bath & Body Works Inc. (BBWI) Fair Value & Analysis
Consumer Cyclical · US · Market cap $4.1B · ISIN US0708301041
What is Bath & Body Works Inc. really worth?
Bath & Body Works Inc.
BBWI · US
A solid business, trading 54% below our fair value of $40.82.
Strengths
Risks
For context
Fair value as of: Aug 27, 2026
From 21 valuation models · updated 8 days ago
Share price −9.9% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters 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 ($26.50). The market is more pessimistic than our downside scenario.
- A fairly wide model range ($26.50 to $55.23) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 27, 2026.
How to read this chart
60‑month range $14.56 – $69.89 · fair‑value band $26.50 – $55.23 · the $18.97 price screens below the $40.82 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 27, 2026.
Analysis
Bath & Body Works Inc. (BBWI) currently trades at $18.97, while our model-based Fair Value estimate is $40.82, implying the stock looks roughly 53.5% undervalued today. The Quality Score stands at 70/100 (solid quality), in the Consumer Cyclical sector. 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 $18.97 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.
Over the trailing twelve months, Bath & Body Works Inc. generated revenue of $7.2B at a net margin of 10.0%. Revenue declined 3.2% year over year. Net debt stands at $4.0B. The stock trades on a trailing P/E of 5.4. Fundamentals as of Aug 27, 2026
Our scenario range runs from $26.50 (bear case) to $55.23 (bull case); at $18.97, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 42% below its 52-week high and 35% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −11% fair-value upside, at 115%, BBWI screens cheaper than that median.
Fair Value models
This estimate rests on fiscal year 2026 figures, and about 7 months have passed since. In that time the company retained roughly $1.62 per share, which is 4.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 21 models by family
Widest divergence: Multiples ($68.97) versus Dividend Discount ($8.65). Highest evidence: FCF DCF (79).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 68 · Market factors (momentum, volatility) 21
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
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.
Full company description
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.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2022 – FY2026 · reported fiscal years
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.
of which total revenue −5.4 % · buybacks/dilution +3.3 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
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Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Bath & Body Works (BBWI) Returned to Digital Growth but Still Expects Sales to Decline. Can E-Commerce Fix Weak Store Traffic?
- Bath & Body Works (BBWI) Unveils Reserve Collection For Home Fragrance
- BBWI Stock Jumps 7.5% on Q2 Earnings Beat, Fiscal 2026 Outlook Raised
- BBWI Q2 Deep Dive: Digital Revamp, Tariff Pressures, and New Distribution Initiatives
Peer Group
Specialty Retail · 219 stocks
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.
Valuation Multiples vs Specialty Retail median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Specialty Retail stocks, each showing price versus our Fair Value estimate (as of Aug 27, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Alimentation Couche-Tard Inc ATD | C$89.93 | C$104.32 | +16% |
| Casey's General Stores, Inc CASY | $755.47 | $398.90 | −47% |
| Williams-Sonoma, Inc WSM | $235.09 | $162.63 | −31% |
| Ulta Beauty, Inc ULTA | $537.10 | $475.40 | −11% |
| DICK'S Sporting Goods, Inc DKS | $202.66 | $181.10 | −11% |
| Best Buy Co BBY | $82.44 | $108.04 | +31% |
| China Tourism Group 601888 | ¥54.97 | ¥40.40 | −27% |
| Tractor Supply Company TSCO | $34.72 | $35.52 | +2% |
| Five Below, Inc FIVE | $259.41 | $117.29 | −55% |
| Murphy USA Inc MUSA | $574.12 | $423.35 | −26% |
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