Discounted Cash Flow (DCF) Analysis Unlevered

Bed Bath & Beyond Inc. (BBBY)

$6.09

-0.10 (-1.62%)
All numbers are in Millions, Currency in USD
Stock DCF: -16.11 | 6.09 | overvalue

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 12,349.3012,028.8011,158.589,233.037,867.787,044.176,306.775,646.575,055.484,526.26
Revenue (%)
EBITDA 1,083.17255.22-357.5581.06-114.33100.2289.7280.3371.9264.39
EBITDA (%)
EBIT 770.06-83.61-700.06-259.85-407.95-123.03-110.15-98.62-88.30-79.05
EBIT (%)
Depreciation 313.11338.82342.51340.91293.63223.24199.87178.95160.22143.45
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 724.18994.771,385.981,352.98439.50659.26590.25528.46473.14423.61
Total Cash (%)
Account Receivables ---318.1026.50133.21119.26106.7895.6085.59
Account Receivables (%)
Inventories 2,730.872,618.922,093.871,671.911,725.411,446.711,295.261,159.671,038.28929.59
Inventories (%)
Accounts Payable 1,197.501,094.08944.19986.05872.45690.64618.35553.62495.66443.78
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 $ 6.09
Beta 1.569
Diluted Shares Outstanding 121.45
Cost of Debt
Tax Rate -18.40
After-tax Cost of Debt 2.13%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.211
Total Debt 3,034.28
Total Equity 739.61
Total Capital 3,773.89
Debt Weighting 80.40
Equity Weighting 19.60
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 12,349.3012,028.8011,158.589,233.037,867.787,044.176,306.775,646.575,055.484,526.26
EBITDA 1,083.17255.22-357.5581.06-114.33100.2289.7280.3371.9264.39
EBIT 770.06-83.61-700.06-259.85-407.95-123.03-110.15-98.62-88.30-79.05
Tax Rate 38.93%12.38%19.75%55.23%-18.40%21.58%21.58%21.58%21.58%21.58%
EBIAT 470.30-73.26-561.82-116.34-483.02-96.48-86.38-77.34-69.24-62
Depreciation 313.11338.82342.51340.91293.63223.24199.87178.95160.22143.45
Accounts Receivable ----291.60-106.7113.9412.4811.1810.01
Inventories -111.95525.05421.96-53.50278.70151.44135.59121.40108.69
Accounts Payable --103.43-149.8841.85-113.60-181.80-72.30-64.73-57.95-51.89
Capital Expenditure -375.79-325.37-277.40-183.08-354.19-207.36-185.65-166.22-148.82-133.24
UFCF 407.61-51.27-121.54505.31-419.08-90.4020.9318.7416.7815.02
WACC
PV UFCF -8719.3816.7014.3912.40
SUM PV UFCF -24.13

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.91
Free cash flow (t + 1) 15.32
Terminal Value 802.13
Present Value of Terminal Value 662.15

Intrinsic Value

Enterprise Value 638.02
Net Debt 2,594.79
Equity Value -1,956.76
Shares Outstanding 121.45
Equity Value Per Share -16.11