Discounted Cash Flow (DCF) Analysis Levered

Bed Bath & Beyond Inc. (BBBY)

$3.16

+0.11 (+3.61%)

All numbers are in Millions, Currency in USD

Stock DCF: 48.59 | 3.16 | 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	$ 3.16
Beta	1.539
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	10.886
Total Debt	3,034.28
Total Equity	313.63
Total Capital	3,347.91
Debt Weighting	90.63
Equity Weighting	9.37
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						98.26	85.45	74.31	64.63	56.20
SUM PV LFCF										438.13

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	2.95
Free cash flow (t + 1)	76.67
Terminal Value	8,070.66
Present Value of Terminal Value	6,978.74

Intrinsic Value

Enterprise Value	7,416.87
Net Debt	2,594.79
Equity Value	4,822.08
Shares Outstanding	99.25
Equity Value Per Share	48.59