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DCF valuation

What is Bath & Body Works, Inc. worth?

With the base-case assumptions below, a discounted cash flow model on Bath & Body Works, Inc.'s reported free cash flow gives $51.77 per share. The share price was $16.45 on September 25, 2026, 68% below that value.

Inputs from the filings

Free cash flow, fiscal 2025
$865M
Average free cash flow, last 5 years
$843.8M
Cash
$794M
balance sheet of August 1, 2026
Debt
$3.61B
balance sheet of August 1, 2026
Diluted shares, fiscal 2025
209,000,000
Revenue growth per year, last 5 years
2.5%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear-2.5%-0.5%2.0%10.0%$27.07+65%
Base2.5%2.5%2.5%9.0%$51.77+215%
Bull7.5%5.5%3.0%8.0%$99.87+507%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$69.14$74.37$80.78$88.78$99.08
8.0%$56.23$59.62$63.64$68.46$74.35
9.0%$46.77$49.09$51.77$54.90$58.60
10.0%$39.55$41.20$43.07$45.21$47.68
11.0%$33.85$35.06$36.42$37.94$39.66

Where the presets come from

Base: years 1 to 5 grow at Bath & Body Works, Inc.'s revenue growth rate over the last 5 fiscal years (2.5% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Bath & Body Works, Inc. company page