As of May 24, 2025, Bed Bath & Beyond Inc has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $0.08, this represents a potential upside of -303583.3%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -336047.8% |
| Potential Upside (10-year) | -303583.3% |
| Discount Rate (WACC) | 5.0% - 6.5% |
Revenue is projected to grow from $5345 million in 02-2023 to $7251 million by 02-2033, representing a compound annual growth rate of approximately 3.1%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 02-2023 | 5345 | 32% |
| 02-2024 | 5590 | 5% |
| 02-2025 | 5702 | 2% |
| 02-2026 | 5830 | 2% |
| 02-2027 | 6124 | 5% |
| 02-2028 | 6247 | 2% |
| 02-2029 | 6372 | 2% |
| 02-2030 | 6499 | 2% |
| 02-2031 | 6899 | 6% |
| 02-2032 | 7109 | 3% |
| 02-2033 | 7251 | 2% |
Net profit margin is expected to improve from -65% in 02-2023 to -36% by 02-2033, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 02-2023 | (3,499) | -65% |
| 02-2024 | (2,702) | -48% |
| 02-2025 | (2,597) | -46% |
| 02-2026 | (2,500) | -43% |
| 02-2027 | (2,472) | -40% |
| 02-2028 | (2,372) | -38% |
| 02-2029 | (2,390) | -38% |
| 02-2030 | (2,408) | -37% |
| 02-2031 | (2,526) | -37% |
| 02-2032 | (2,571) | -36% |
| 02-2033 | (2,591) | -36% |
. Projected CapEx is expected to maintain at approximately 3% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 02-2024 | 207 |
| 02-2025 | 241 |
| 02-2026 | 240 |
| 02-2027 | 205 |
| 02-2028 | 176 |
| 02-2029 | 181 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 0 |
| Days Inventory | 98 |
| Days Payables | 54 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2024 | (3,157) | (778) | 167 | 129 | (2,675) |
| 2025 | (2,985) | (748) | 170 | (4) | (2,403) |
| 2026 | (2,860) | (720) | 174 | (62) | (2,252) |
| 2027 | (2,852) | (712) | 183 | 28 | (2,350) |
| 2028 | (2,749) | (683) | 186 | (17) | (2,236) |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -336047.8% |
| 10-Year DCF (Growth) | 0.00 | -303583.3% |
| 5-Year DCF (EBITDA) | 0.00 | -100.0% |
| 10-Year DCF (EBITDA) | 0.00 | -100.0% |
Is Bed Bath & Beyond Inc (BBBY) a buy or a sell? Bed Bath & Beyond Inc is definitely a sell. Based on our DCF analysis, Bed Bath & Beyond Inc (BBBY) appears to be overvalued with upside potential of -303583.3%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider reducing exposure at the current market price of $0.08.