Discounted Cash Flow (DCF) Analysis Levered

Bed Bath & Beyond Inc. (BBBY)

$0.8001

-0.02 (-2.49%)

All numbers are in Millions, Currency in USD

Stock DCF: 169.30 | 0.8001 | undervalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	12,349.30	12,028.80	11,158.58	9,233.03	7,867.78	7,044.17	6,306.77	5,646.57	5,055.48	4,526.26
Revenue (%)
Operating Cash Flow	859.69	918.28	590.94	268.11	17.85	324.34	290.39	259.99	232.77	208.41
Operating Cash Flow (%)
Capital Expenditure	-375.79	-325.37	-277.40	-183.08	-354.19	-207.36	-185.65	-166.22	-148.82	-133.24
Capital Expenditure (%)
Free Cash Flow	483.90	592.91	313.54	85.03	-336.33	116.98	104.74	93.77	83.96	75.17

Weighted Average Cost Of Capital

Share price	$ 0.8,001
Beta	1.640
Diluted Shares Outstanding	99.25
Cost of Debt
Tax Rate	-18.40
After-tax Cost of Debt	2.13%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.243
Total Debt	3,034.28
Total Equity	79.41
Total Capital	3,113.69
Debt Weighting	97.45
Equity Weighting	2.55
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	12,349.30	12,028.80	11,158.58	9,233.03	7,867.78	7,044.17	6,306.77	5,646.57	5,055.48	4,526.26
Operating Cash Flow	859.69	918.28	590.94	268.11	17.85	324.34	290.39	259.99	232.77	208.41
Capital Expenditure	-375.79	-325.37	-277.40	-183.08	-354.19	-207.36	-185.65	-166.22	-148.82	-133.24
Free Cash Flow	483.90	592.91	313.54	85.03	-336.33	116.98	104.74	93.77	83.96	75.17
WACC
PV LFCF						114.29	99.96	87.44	76.48	66.89
SUM PV LFCF										445.05

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	2.36
Free cash flow (t + 1)	76.67
Terminal Value	21,297.57
Present Value of Terminal Value	18,953.03

Intrinsic Value

Enterprise Value	19,398.08
Net Debt	2,594.79
Equity Value	16,803.30
Shares Outstanding	99.25
Equity Value Per Share	169.30