Discounted Cash Flow (DCF) Analysis Unlevered

Bed Bath & Beyond Inc. (BBBY)

$0.8001

-0.02 (-2.49%)

All numbers are in Millions, Currency in USD

Stock DCF: 9.94 | 0.8001 | undervalue

Operating Data

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 (%)
EBITDA	1,074.43	251.69	-357.55	81.06	-114.33	98.81	88.46	79.20	70.91	63.49
EBITDA (%)
EBIT	761.32	-87.14	-700.06	-259.85	-407.95	-124.44	-111.41	-99.75	-89.31	-79.96
EBIT (%)
Depreciation	313.11	338.82	342.51	340.91	293.63	223.24	199.87	178.95	160.22	143.45
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	724.18	994.77	1,385.98	1,352.98	439.50	659.26	590.25	528.46	473.14	423.61
Total Cash (%)
Account Receivables	-	-	-	318.10	26.50	133.21	119.26	106.78	95.60	85.59
Account Receivables (%)
Inventories	2,730.87	2,618.92	2,093.87	1,671.91	1,725.41	1,446.71	1,295.26	1,159.67	1,038.28	929.59
Inventories (%)
Accounts Payable	1,197.50	1,094.08	944.19	986.05	872.45	690.64	618.35	553.62	495.66	443.78
Accounts Payable (%)
Capital Expenditure	-375.79	-325.37	-277.40	-183.08	-354.19	-207.36	-185.65	-166.22	-148.82	-133.24
Capital Expenditure (%)

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

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
EBITDA	1,074.43	251.69	-357.55	81.06	-114.33	98.81	88.46	79.20	70.91	63.49
EBIT	761.32	-87.14	-700.06	-259.85	-407.95	-124.44	-111.41	-99.75	-89.31	-79.96
Tax Rate	38.93%	12.38%	19.75%	55.23%	-18.40%	21.58%	21.58%	21.58%	21.58%	21.58%
EBIAT	464.96	-76.35	-561.82	-116.34	-483.02	-97.59	-87.37	-78.23	-70.04	-62.71
Depreciation	313.11	338.82	342.51	340.91	293.63	223.24	199.87	178.95	160.22	143.45
Accounts Receivable	-	-	-	-	291.60	-106.71	13.94	12.48	11.18	10.01
Inventories	-	111.95	525.05	421.96	-53.50	278.70	151.44	135.59	121.40	108.69
Accounts Payable	-	-103.43	-149.88	41.85	-113.60	-181.80	-72.30	-64.73	-57.95	-51.89
Capital Expenditure	-375.79	-325.37	-277.40	-183.08	-354.19	-207.36	-185.65	-166.22	-148.82	-133.24
UFCF	402.27	-54.36	-121.54	505.31	-419.08	-91.51	19.94	17.85	15.98	14.31
WACC
PV UFCF						-89.40	19.03	16.65	14.56	12.73
SUM PV UFCF										-26.43

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	2.36
Free cash flow (t + 1)	14.60
Terminal Value	4,054.45
Present Value of Terminal Value	3,608.12

Intrinsic Value

Enterprise Value	3,581.69
Net Debt	2,594.79
Equity Value	986.90
Shares Outstanding	99.25
Equity Value Per Share	9.94