BBWI stock forecast reflects management guidance highlighting inflation resilience, as cost optimization lowered SG&A expenses by 70 basis points year-over-year. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Bath & Body Works as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 11%, which is based on a levered beta of 1.670. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. CSX Stock Rally: Strong Options Flow, Analyst Price Targets The retail ETF sector weighting for BBWI has increased slightly, and BBWI stock forecast implies it may outperform broader retail benchmarks if same-store sales trend above 3%.
