Bath & Body Works, Inc.

Valuation Analysis

About the Company

Bath & Body Works, Inc. operates as a specialty retailer of personal care and home fragrance products. The company offers body and home fragrances, including 3-wick candles, home fragrance diffusers, fine fragrance mists, eau de parfum, body wash, hand soaps, body lotions, and body creams, as well as sanitizer and other products. It sells its products under the Bath & Body Works and other brand names through retail stores and e-commerce sites in the United States and Canada, as well as through international stores operated by partners under the franchise, license, and wholesale arrangements. The company was formerly known as L Brands, Inc. and changed its name to Bath & Body Works, Inc. in August 2021. Bath & Body Works, Inc. was founded in 1963 and is headquartered in Columbus, Ohio.

Bath & Body Works, Inc. Stock at a Glance

Bath & Body Works, Inc. (BBWI) is currently trading at $19.40 with a market capitalization of $3.9B. The trailing P/E ratio stands at 5.51x, with a forward P/E of 6.77x. The 52-week range spans from $14.28 to $33.96; the current price is 42.9% below the yearly high. Year-over-year revenue growth stands at -3.2%. The net profit margin stands at 10.04%.

💰 Dividend

Bath & Body Works, Inc. pays an annual dividend of $0.80 per share, representing a yield of 4.12%. The payout ratio stands at 22.73%.

📊 Analyst Rating

14 analysts rate Bath & Body Works, Inc. (BBWI) on consensus: Hold. The average price target is $25.57, implying +31.81% from the current price. Analyst price targets range from $19.00 to $54.00.

Bath & Body Works, Inc.: The Investment Case in Detail

Bath & Body Works, Inc. (BBWI) operates in the Consumer Cyclical — specifically Specialty Retail — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Earnings growth of 83.7% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

Revenue is contracting at -3.2% year-over-year — until that trend reverses, valuation is exposed to further downgrades.

Valuation in Context

With a PEG ratio of 0.75, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 5.79x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The dividend yield near 4.12% combined with a payout ratio of 22.73% leaves room for further hikes — a track record of consecutive raises is a strong income signal.
• The analyst consensus price target implies 31.81% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to market-like volatility, elevated short interest (7.54%).

Trading Data

💵 Dividend Info

Related Stocks in the Same Sector

Where can I buy Bath & Body Works, Inc.?

Compare top-rated brokers — low fees, trusted providers, fully regulated.