BBWI — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($22.76)
DCF	$46.98	+106.4%
Graham Number	—	—
Reverse DCF	—	implied g: -2.2%
DDM	$16.48	-27.6%
EV/EBITDA	$22.77	+0.0%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $818.00M

Near-term growth (yrs 1–5)(%)Rev: -1.0% / EPS: -23.9%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.04%

Computed WACC: 9.04%

Cost of equity (Re)12.32%(Rf 4.30% + β 1.46 × ERP 5.50%)

Cost of debt (Rd)7.54%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)48.52%

Debt weight (D/V)51.48%

Results

Intrinsic Value / share$46.54

Current Price$22.76

Upside / Downside+104.5%

Net Debt (used)$4.74B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$47.58	$61.89	$78.53	$97.80	$119.99
8.0%	$34.99	$46.51	$59.88	$75.34	$93.13
9.0%	$26.27	$35.85	$46.98	$59.81	$74.57
10.0%	$19.86	$28.04	$37.52	$48.44	$60.97
11.0%	$14.96	$22.07	$30.28	$39.75	$50.59

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $3.23

Book Value / share($)Yahoo: $-7.77

Results

Graham Number requires positive EPS and positive Book Value per share. BVPS is zero or negative.

Graham Number—

Current Price$22.76

Margin of Safety—

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.04%

Terminal growth rate(%)

Computed WACC: 9.04%

Cost of equity (Re)12.32%(Rf 4.30% + β 1.46 × ERP 5.50%)

Cost of debt (Rd)7.54%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)48.52%

Debt weight (D/V)51.48%

Results

Current Price$22.76

Implied Near-term FCF Growth-2.1%

Historical Revenue Growth-1.0%

Historical Earnings Growth-23.9%

Base FCF (TTM)$818.00M

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $0.80

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$16.48

Current Price$22.76

Upside / Downside-27.6%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.48B

Target EV/EBITDA multipleCurrent: 6.3×

Net Debt($B)Default: $4.74B

Results

Implied Equity Value / share$22.77

Current Price$22.76

Upside / Downside+0.0%

Implied EV$9.40B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$2.74B	$3.74B	$4.74B	$5.74B	$6.74B
2.3x	$3.58	$-1.31	$-6.19	$-11.07	$-15.96
4.3x	$18.06	$13.17	$8.29	$3.40	$-1.48
6.3x	$32.54	$27.65	$22.77	$17.88	$13.00
8.3x	$47.01	$42.13	$37.24	$32.36	$27.48
10.3x	$61.49	$56.61	$51.72	$46.84	$41.95

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