MeritValue

Bath & Body Works, Inc.

BBWIdata completeness 100%19 fiscal years on file

Data notes: no data for concept 'investmentsAtFairValue'; no data for concept 'netInvestmentIncome'; no data for concept 'realEstateImpairment'

The thesis, from the filings

Bath & Body Works, Inc. earns about 56% on invested capital, far above its ~9% cost of capital, and has bought back 23% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $8.8 and $39.5 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$7.88B1$7.56B2$7.43B3$7.31B3$7.29B3
Net income$1.33B4$800M5$878M6$798M6$649M6
Operating cash flow$1.49B7$1.14B8$954M9$886M9$1.1B9
Capital expenditure$270M10$328M11$298M12$226M12$237M12
Free cash flow (derived)$1.22B7$816M8$656M9$660M9$865M9
Total debt$4.85B13$4.86B14$4.39B15$7.77B16$7.78B16
Cash & equivalents$1.98B17$1.23B18$1.08B19$674M20$953M20
Diluted shares273.0M233.0M229.0M221.0M209.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
−$61.29
your share of equity
Profit it earned you last year
$31.05
Free cash flow it threw off
$41.39
Debt you’d be carrying
$372.44

10 shares is a claim on −$61.29 of net worth that earned you $31.05 and generated $41.39 of cash last year, against $372.44 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
56% avg · 5y
FY22 101%FY23 74%FY24 70%FY25 18%FY26 15%

It earned about 56% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
−23% shares · 5y

Share count is down 23% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has risen 60% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.5.0

The 3 estimate methods that apply put fair value between $8.8 and $39.5 a share. They rest on different assumptions, so where they diverge is the story.

DCF · Growth Exit 10Y
$8.8
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$660M
DCF · Growth Exit 5Y
$12.17
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$660M
Earnings Power Value
$39.5
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$800M
  • growthAssumed0.0%
Graham Number
not applicable
book value / share count missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)8.97%
Terminal growth2.5%
At your growth, a share is worth $12.17
The three cases
Bear0.0%$12.17
Base0.0%$12.17
Bull5.0%$23.02

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2022-01-29 · accession 0000701985-24-000010 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-01-28 · accession 0000701985-25-000011 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-02-03 · accession 0000701985-26-000008 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2022-01-29 · accession 0000701985-24-000010 (NetIncomeLoss)
  5. 10-K · period ending 2023-01-28 · accession 0000701985-25-000011 (NetIncomeLoss)
  6. 10-K · period ending 2024-02-03 · accession 0000701985-26-000008 (NetIncomeLoss)
  7. 10-K · period ending 2022-01-29 · accession 0000701985-24-000010 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-01-28 · accession 0000701985-25-000011 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-02-03 · accession 0000701985-26-000008 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-01-29 · accession 0000701985-24-000010 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-01-28 · accession 0000701985-25-000011 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2024-02-03 · accession 0000701985-26-000008 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-01-29 · accession 0000701985-23-000008 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2023-01-28 · accession 0000701985-24-000010 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2024-02-03 · accession 0000701985-25-000011 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2025-02-01 · accession 0000701985-26-000008 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2022-01-29 · accession 0000701985-23-000008 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2023-01-28 · accession 0000701985-24-000010 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2024-02-03 · accession 0000701985-25-000011 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2025-02-01 · accession 0000701985-26-000008 (CashAndCashEquivalentsAtCarryingValue)