Latest Ratios: P/E Ratio 5.5x · EV/EBITDA 5.4x · ROE N/A. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.4B | $4.6B | $8.3B | $9.8B | $10.4B | $14.9B | $9.3B | $5.2B | $6.2B | $11.6B | $14.2B |
| Enterprise Value | $7.4B | $8.6B | $12.6B | $14.3B | $15.2B | $19.0B | $13.2B | $12.7B | $10.6B | $15.9B | $18.0B |
| P/E Ratio → | 5.54 | 7.10 | 10.42 | 11.14 | 13.02 | 11.20 | 10.98 | — | 9.74 | 11.84 | 12.23 |
| P/S Ratio | 0.47 | 0.63 | 1.14 | 1.32 | 1.38 | 1.89 | 1.44 | 0.96 | 0.47 | 0.92 | 1.13 |
| P/B Ratio | — | — | — | — | — | — | — | — | — | — | — |
| P/FCF | 3.97 | 5.33 | 12.59 | 14.89 | 12.75 | 12.21 | 5.11 | 6.64 | 8.31 | 16.65 | 15.74 |
| P/OCF | 3.11 | 4.19 | 9.38 | 10.24 | 9.09 | 10.00 | 4.54 | 4.18 | 4.51 | 8.28 | 7.49 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.18 | 1.72 | 1.92 | 2.01 | 2.40 | 2.05 | 2.36 | 0.80 | 1.26 | 1.43 |
| EV / EBITDA | 5.39 | 6.24 | 8.14 | 9.18 | 9.53 | 7.99 | 6.20 | 7.83 | 5.81 | 6.92 | 7.13 |
| EV / EBIT | 6.60 | 7.44 | 9.40 | 10.44 | 10.93 | 10.47 | 8.47 | 13.03 | 8.54 | 9.26 | 8.60 |
| EV / FCF | — | 9.96 | 19.09 | 21.73 | 18.66 | 15.51 | 7.27 | 16.38 | 14.19 | 22.77 | 19.96 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 43.7% | 43.7% | 44.3% | 43.6% | 43.1% | 48.9% | 48.1% | 44.2% | 37.0% | 39.3% | 40.8% |
| Operating Margin | 15.4% | 15.4% | 17.3% | 17.3% | 18.2% | 25.5% | 24.9% | 19.2% | 9.3% | 13.7% | 15.9% |
| Net Profit Margin | 8.9% | 8.9% | 10.9% | 11.8% | 10.6% | 16.9% | 13.1% | -6.8% | 4.9% | 7.8% | 9.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | — | — | — | — | — | — | — |
| ROA | 13.1% | 13.1% | 15.4% | 16.0% | 13.9% | 15.2% | 7.8% | -4.0% | 7.9% | 12.0% | 13.9% |
| ROIC | 30.0% | 30.0% | 32.9% | 35.2% | 40.2% | 52.2% | 25.8% | 16.2% | 26.3% | 39.3% | 50.2% |
| ROCE | 31.6% | 31.6% | 32.4% | 31.0% | 31.1% | 29.8% | 19.4% | 15.0% | 20.2% | 28.2% | 31.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | — | — | — | — | — | — | — |
| Debt / EBITDA | 3.59 | 3.59 | 3.20 | 3.59 | 3.79 | 2.53 | 3.52 | 5.58 | 3.18 | 2.52 | 2.28 |
| Net Debt / Equity | — | — | — | — | — | — | — | — | — | — | — |
| Net Debt / EBITDA | 2.90 | 2.90 | 2.77 | 2.89 | 3.02 | 1.70 | 1.84 | 4.66 | 2.41 | 1.86 | 1.51 |
| Debt / FCF | — | 4.63 | 6.49 | 6.84 | 5.91 | 3.30 | 2.16 | 9.74 | 5.88 | 6.12 | 4.22 |
| Interest Coverage | 4.20 | 4.20 | 4.29 | 3.96 | 4.00 | 4.67 | 3.60 | 2.64 | 3.23 | 4.23 | 5.30 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.27 | 1.27 | 1.48 | 1.64 | 1.64 | 2.33 | 1.97 | 1.37 | 1.64 | 1.62 | 1.72 |
| Quick Ratio | 0.83 | 0.83 | 0.88 | 1.09 | 1.13 | 1.78 | 1.77 | 0.83 | 1.01 | 1.01 | 1.18 |
| Cash Ratio | 0.60 | 0.60 | 0.55 | 0.84 | 0.89 | 1.53 | 1.26 | 0.63 | 0.71 | 0.75 | 0.96 |
| Asset Turnover | — | 1.44 | 1.50 | 1.36 | 1.38 | 1.31 | 0.56 | 0.53 | 1.64 | 1.55 | 1.54 |
| Inventory Turnover | 5.87 | 5.87 | 5.55 | 5.91 | 6.07 | 5.68 | 5.84 | 2.34 | 6.68 | 6.19 | 6.80 |
| Days Sales Outstanding | — | 9.01 | 10.24 | 11.01 | 10.91 | 11.11 | 8.40 | 20.66 | 10.12 | 8.96 | 8.53 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 4.6% | 3.6% | 2.1% | 1.9% | 1.8% | 0.8% | 0.9% | 6.4% | 10.7% | 5.9% | 9.0% |
| Payout Ratio | 25.7% | 25.7% | 22.2% | 20.7% | 23.3% | 9.0% | 9.8% | — | 103.4% | 69.8% | 109.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 18.0% | 14.1% | 9.6% | 9.0% | 7.7% | 8.9% | 9.1% | — | 10.3% | 8.4% | 8.2% |
| FCF Yield | 25.2% | 18.8% | 7.9% | 6.7% | 7.8% | 8.2% | 19.6% | 15.1% | 12.0% | 6.0% | 6.4% |
| Buyback Yield | 11.7% | 8.7% | 4.8% | 1.5% | 12.6% | 13.2% | 0.0% | 0.0% | 3.2% | 3.8% | 3.1% |
| Total Shareholder Yield | 16.3% | 12.3% | 7.0% | 3.4% | 14.4% | 14.0% | 0.9% | 6.4% | 13.9% | 9.7% | 12.0% |
| Shares Outstanding | — | $212M | $221M | $229M | $233M | $273M | $281M | $276M | $276M | $287M | $291M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying BBWI stock.
Bath & Body Works, Inc.'s current P/E ratio is 5.5x. The historical average is 11.9x. This places it at the 3th percentile of its historical range.
Bath & Body Works, Inc.'s current EV/EBITDA is 5.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 6.4x.
Based on historical data, Bath & Body Works, Inc. is trading at a P/E of 5.5x. This is at the 3th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Bath & Body Works, Inc.'s current dividend yield is 4.64% with a payout ratio of 25.7%.
Bath & Body Works, Inc. has 43.7% gross margin and 15.4% operating margin. Operating margin between 10-20% is typical for established companies.
Bath & Body Works, Inc.'s Debt/EBITDA ratio is 3.6x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Negative equity and high leverage
Metrics are mathematically derived from official filings.
Deep Value Discount to Peers
Bath & Body Works trades at a significant discount to its specialty retail peers, with a forward P/E of 6.55 and EV/EBITDA of 6.05, suggesting the market prices it as a mature, low-growth entity rather than a high-frequency replenishment business.
The valuation multiples are a fraction of peers like Ulta Beauty (P/E 22.0, EV/EBITDA 14.06) and even the unprofitable e.l.f. Beauty (EV/EBITDA 33.66). This discount appears to reflect concerns over persistent revenue declines and the company's negative equity base, which may obscure the underlying cash-generative nature of its franchise. The 4.0% dividend yield further frames the stock as a value play, but the market seems to be demanding a higher risk premium for the balance sheet structure and promotional-driven sales model.
Margin Resilience Amidst Top-Line Pressure
Despite a 2.3% revenue decline in Q2 2026, operating margin expanded to 14.3% from 10.1% a year prior, indicating that cost discipline and promotional timing are currently offsetting volume weakness.
The gross margin of 45.7% in the latest quarter is at the high end of its recent range, suggesting the company is managing input costs and promotional depth effectively. However, the volatility in net margin, which swung from 4.1% to 7.8% year-over-year, highlights that non-operating items and tax effects can significantly distort the underlying profitability trend. The key question is whether these margin gains are sustainable or if they represent a temporary benefit from cost cuts that will eventually exhaust themselves without top-line growth.
Capital Efficiency Constrained by Equity Deficit
Return on Invested Capital (ROIC) of 5.7% in Q2 2026 remains well below the cost of capital, and the negative equity base makes traditional ROE analysis meaningless, indicating the business is not generating sufficient returns to justify its capital structure.
The ROIC trend shows significant seasonality, peaking at 15.3% in Q4 2025 before falling back, which underscores the business's dependence on holiday-driven profitability. The inability to generate a consistent, high single-digit or low double-digit ROIC suggests that the company's capital-intensive store footprint and high debt load are diluting returns. This pattern implies that without a sustained recovery in sales productivity, the company may struggle to create long-term shareholder value.
Extreme Leverage Offsets Adequate Coverage
While interest coverage of 3.43x appears manageable, the company's negative equity and D/EBITDA of 21.96x indicate a capital structure that is highly leveraged and reliant on consistent cash flow generation to service its obligations.
The leverage profile is extreme for a specialty retailer, with total debt of $4.7B against a negative equity base. The interest coverage ratio, while positive, is volatile and dropped significantly from 8.78x in Q4 2025, reflecting the seasonal nature of earnings. This structure leaves the company vulnerable to any sustained downturn in demand, as it has minimal equity cushion and a large portion of its operating cash flow is committed to debt service, limiting financial flexibility for strategic investments.
Adequate but Seasonally Volatile Liquidity
The current ratio of 1.20 and quick ratio of 0.68 indicate a tight but adequate liquidity position, though the significant reliance on inventory, which represents over 75% of current assets, creates vulnerability if promotional activity fails to clear stock.
The liquidity position is heavily dependent on the company's ability to convert inventory into cash, as evidenced by the large gap between the current and quick ratios. The quick ratio of 0.68 suggests that without selling inventory, the company cannot cover its immediate liabilities. This is a structural feature of the retail model, but the high inventory days outstanding (92 days) compared to payables (68 days) means the company must finance a significant portion of its working capital, adding to its cash flow pressure.
The Misapplied Efficiency Metric
Asset turnover of 0.30x is commonly misapplied to BBWI, as it obscures the true driver of value: the high-margin, consumable nature of its products which creates a predictable, staple-like cash flow stream despite the low capital efficiency.
Analysts often focus on the low asset turnover as a sign of inefficiency, but this metric is distorted by the company's large, owned real estate and inventory-heavy model. The more relevant metric is the gross margin return on inventory investment, which captures the profitability of the stock turn. The market's focus on turnover may be causing it to misprice the business, overlooking the recurring revenue characteristics of its soap and body care categories, which behave more like household staples than discretionary gifts.