Bath & Body Works, Inc.
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$39.00
Market Price
$16.51
Undervalued By
57.7%
Method: 10-year unlevered FCF DCF: $1,000M normalized FCF base (TTM FCF ~$1.03B); 3% growth yrs 1-5; 2% growth yrs 6-10; 11% discount rate; 2% terminal growth; -$3,950M net debt (total debt $4.74B, cash $794M); 201.65M shares outstanding.
Reasoning: Bath & Body Works is a mature, high-margin specialty retailer with heavy leverage from its 2021 spin-off/recap, so modest growth and an above-average discount rate reflect mall-traffic and leverage risk while still crediting its strong FCF conversion (~14% FCF margin on $7.21B TTM revenue).