BBWI
Bath & Body Works Inc
Price:  
33.51 
USD
Volume:  
7,767,700
United States | Specialty Retail

BBWI Fair Value

185.8 %
Upside

What is the fair value of BBWI?

As of 2025-07-09, the Fair Value of Bath & Body Works Inc (BBWI) is 95.77 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 33.51 USD, the upside of Bath & Body Works Inc is 185.8%.

Is BBWI a good investment?

With the market price of 33.51 USD and our fair value calculation, Bath & Body Works Inc (BBWI) is a good investment. Investing in BBWI stocks now will result in a potential gain of 185.8%.

33.51 USD
Stock Price
95.77 USD
Fair Price
FAIR VALUE CALCULATION

BBWI Fair Value

Peter Lynch's formula is:

BBWI Fair Value
= Earnings Growth Rate x TTM EPS
BBWI Fair Value
= 25 x 3.83
BBWI Fair Value
= 95.77

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
01-202101-202201-202302-202402-20255Y Avg
Net income8441,333800878798931
YoY growth330.6%57.9%-40%9.8%-9.1%69.8%

BBWI Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Tractor Supply Co30,099231.3-44.9%
Ulta Beauty Inc21,81726.4660.6136.7%
Dick's Sporting Goods Inc16,62414.4360.573.6%
Five Below Inc7,0914.885.67-33.5%
Academy Sports & Outdoors Inc3,2715.8145.82196.6%
Michaels Companies Inc3,1112.412.14-44.8%
National Vision Holdings Inc1,955-0.3-1.64-106.6%
Petco Health and Wellness Company Inc967-0.2-1.06-134.6%
Leslie's Inc88-0.2-6.09-1387.5%

BBWI Fair Value - Key Data

Market Cap (mil)7,138
P/E8.7x
Forward P/E8.8x
EPS3.83
Avg earnings growth rate69.8%
TTM earnings816

BBWI Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.