Bath & Body Works, Inc. (BBWI) Stock Analysis
Score AValue · Grade A · Bearish
$16.28
$20.81
+27.9%
10/10
A
Value
Investment Thesis
Good opportunity: Solid company with good risk/reward at 3.8:1.
For New Investors
Quantitative score: high
For Current Holders
Quantitative score: neutral
Buy if
- Price drops 15-20% (improves asymmetry)
- Bull scenario catalysts materialize
- Market-wide correction creates opportunity
Sell if
- Bear scenario triggers occur
- Quality metrics deteriorate (ROIC declining)
- Better alternatives emerge
Valuation
Fair Value estimate: $20.81 (+27.9%). Significantly undervalued. (Methods diverge significantly. Conservative estimate shown.)
PEG-Based EPS
$0.53
FCF DCF Model
$21.16
EV/EBITDA
$21.16
Blended Fair Value
$20.81
Confidence
Low
Methods
PEG-Based EPS (conservative), FCF 2-Stage DCF, EV/EBITDA
Quality Analysis
95/120 points
Investable
ROE (3Y Avg)
19.2%
ROIC-WACC Spread
7.6%
D/E Ratio
0.5x
Current Ratio
1.3x
Interest Coverage
4x
FCF Positive Years
3/3
Quality Flags
- ROIC spread: 7.6pp (got 19/25 pts)
- Leverage: D/E 0.5x (11/15 pts)
Market Sentiment
Wall Street Consensus
$20.00
+22.9% Upside
14 analysts
Range: $17.00 — $26.00
Rating: Hold
Our model is slightly more bullish than Wall Street.
Trend & Technical
Price ($16.25) is 27.4% below SMA 200 ($22.40). Bearish trend. Caution on entry.
Tech Score 22/100 — Very weak technicals. Multiple bearish signals active.
Risk & Reward
Asymmetry Ratio
3.83:1
Expected Return
+21.4%
Bull Upside
+38.3%
Bear Downside
-10.0%
Excellent asymmetry: 3.83:1 ratio. Upside significantly outweighs downside.
Verdict: Very Favorable
Scenario Analysis
Bear
Base
Bull
Buy Zone & Action Plan
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AI Executive Summary
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Technical Analysis
RSI, MACD, moving averages, trend signals, and momentum indicators.
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Frequently Asked Questions
What is the fair value of BBWI?
Based on our multi-method conviction analysis, the estimated fair value of Bath & Body Works, Inc. (BBWI) is $20.81. This is calculated by blending PEG-Based EPS (conservative), FCF 2-Stage DCF, EV/EBITDA and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is low.
Is BBWI a buy, sell, or hold?
BBWI currently has a BUY rating with a conviction score of 10/10. Good opportunity: Solid company with good risk/reward at 3.8:1. Quantitative score: high.
Is BBWI a high-quality stock?
Bath & Body Works, Inc. has a quality grade of A (95/120 points), rated as Investable. Key metrics include ROE of 19.2%, ROIC-WACC spread of 7.6%, and D/E ratio of 0.5x.
What type of stock is BBWI?
BBWI is classified as a "value" in our framework. Low P/E: 5.2x, High FCF Yield: 26.4%, High dividend: 4.9%, Mature growth: 1.9%, High beta (cyclical behavior): 1.39
What do Wall Street analysts say about BBWI?
14 Wall Street analysts have a consensus price target of $20.00 for BBWI, representing +22.9% upside. Targets range from $17.00 to $26.00. The consensus recommendation is "Hold". Our model is slightly more bullish than Wall Street.
What are the risks of investing in BBWI?
The risk/reward asymmetry ratio for BBWI is 3.83:1, rated as Very Favorable. Excellent asymmetry: 3.83:1 ratio. Upside significantly outweighs downside. The expected return is +21.4%, with bull case upside of +38.3% and bear case downside of -10.0%.
What is the current trend for BBWI?
BBWI is in a bearish trend. Price ($16.25) is 27.4% below SMA 200 ($22.40). Bearish trend. Caution on entry. The technical score is 22/100.
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Last updated: May 19, 2026 · Framework version 3.7
This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.