TGM's two-stage DCF values Bath & Body Works, Inc. (BBWI) between $22.32 and $41.58 depending on assumptions, with a base case of $29.21. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth (floored at 2%)), fading to 2.5% long-run; the discount rate (10.9%) reflects its beta.
What would today's price require?
$16.06 is justified only if free cash flow grows about -6.8% a year (fading to 2.5% long-run) at a 10.9% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 0.5%/yr | 11.9% | $22.32 |
| Base case | 2.0%/yr | 10.9% | $29.21 |
| Optimistic | 5.0%/yr | 9.9% | $41.58 |
| Third-party model estimate (FMP) | independent reference · retrieved Oct 2, 2026 · assumptions not provided | $59.81 | |
The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.
Current Price
$16.06
Market-Implied Growth
-6.8%/yr
vs -12.8% 5Y actual
Model Scenario Range
$22.32 – $41.58
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for BBWI (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $738.0M · 0.20B shares · net debt $2.9B
Estimated Fair Value
$29.21
+81.9% vs $16.06
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 2.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $16.06; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.9% | $36.69 | $39.54 | $42.84 | $46.69 | $51.25 |
| 9.9% | $30.56 | $32.69 | $35.10 | $37.86 | $41.05 |
| 10.9% | $25.74 | $27.38 | $29.21 | $31.26 | $33.59 |
| 11.9% | $21.85 | $23.14 | $24.57 | $26.15 | $27.91 |
| 12.9% | $18.64 | $19.68 | $20.82 | $22.06 | $23.44 |
