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%.
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%.
Peter Lynch's formula is:
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 | ||||||
01-2021 | 01-2022 | 01-2023 | 02-2024 | 02-2025 | 5Y Avg | |
Net income | 844 | 1,333 | 800 | 878 | 798 | 931 |
YoY growth | 330.6% | 57.9% | -40% | 9.8% | -9.1% | 69.8% |
Market Cap (mil) | 7,138 |
P/E | 8.7x |
Forward P/E | 8.8x |
EPS | 3.83 |
Avg earnings growth rate | 69.8% |
TTM earnings | 816 |
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.