Bath & Body Works, Inc.
Bath & Body Works is a global leader in personal care and home fragrance, driven by the belief that everybody deserves to feel good. For over 35 years, the brand s beloved and iconic scents have been expertly crafted for exceptional performance and a luxury fragrance experience.
$20.42
-$0.13 (-0.63%)
EOD Oct 21, 2026
15.44% operating margin is respectable but not wide. ROIC at 18.02%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue declined 0.2% YoY. The question is whether this is cyclical or a structural shift.
Net debt of $4.00B represents 4.6x FCF, leverage limits flexibility.
5.4x earnings, 4.0x FCF. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$7.21B
▼ -0.2% YoY
Net Income (TTM)
$781M
▼ -18.7% YoY
Op. Margin
16.74%
▼ -1.9pp YoY
ROIC
20.98%
▼ -1.7pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$1.03B
▲ +31.1% YoY
Op. Cash Flow (TTM)
$1.27B
▲ +24.4% YoY
Net Debt
$3.95B
Cash & Equiv.
$794M
5Y CAGR: +2.5%
5Y CAGR: -13.7%
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SourceComputed from the 10-Q filed 21 Aug 2026, covering the period ending 1 Aug 2026, as reported to the SEC. Data last refreshed 12 Oct 2026. How this is calculated.
Price from market data, last close as of 21 Oct 2026. Fiscal year ends Jan. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is Bath & Body Works (BBWI) overvalued?
At a P/E of 5.4 and a price-to-free-cash-flow of 4.0, Bath & Body Works (BBWI) trades below a two-stage DCF intrinsic value of about $68.89 per share, so at $20.42 the stock looks undervalued (237.4% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Bath & Body Works scores 59/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 3.9%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Bath & Body Works's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $68.89 per share for BBWI, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $51.67. At today's $20.42, that puts the stock about 237.4% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Bath & Body Works a high-quality business?+
Bath & Body Works scores 59 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 16.7% operating margin and a 21.0% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does Bath & Body Works (BBWI) pay a dividend, and how much?+
Yes, Bath & Body Works pays a regular dividend of about $0.80 per share per year (typically in quarterly installments), a yield of roughly 3.9% at the current price. That is a payout ratio of about 20.7% of earnings, so the dividend is amply covered by earnings. Bath & Body Works has grown the dividend at roughly 8.6% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For BBWI's full payout history, growth streak and dividend-safety score, see the dividends tab.
Is Bath & Body Works a good stock to buy right now?+
That depends on valuation and quality together, not either alone. BBWI currently trades below its estimated intrinsic value and scores 59/100 on quality (mixed). It also yields about 3.9%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.
Related stocks: Retail-Retail Stores, NEC
Spot a number that looks wrong? Check it in BBWI's SEC filings or
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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