Latest Ratios: P/E Ratio 6.7x · EV/EBITDA 5.9x · 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 | $4.2B | $4.6B | $8.3B | $9.8B | $10.4B | $14.9B | $9.3B | $5.2B | $6.2B | $11.6B | $14.2B |
| Enterprise Value | $8.2B | $8.6B | $12.6B | $14.3B | $15.2B | $19.0B | $13.2B | $12.7B | $10.6B | $15.9B | $18.0B |
| P/E Ratio → | 6.72 | 7.10 | 10.42 | 11.14 | 13.02 | 11.20 | 10.98 | — | 9.74 | 11.84 | 12.23 |
| P/S Ratio | 0.57 | 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 | 4.80 | 5.33 | 12.59 | 14.89 | 12.75 | 12.21 | 5.11 | 6.64 | 8.31 | 16.65 | 15.74 |
| P/OCF | 3.77 | 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 | 5.91 | 6.24 | 8.14 | 9.18 | 9.53 | 7.99 | 6.20 | 7.83 | 5.81 | 6.92 | 7.13 |
| EV / EBIT | 7.24 | 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 | 3.8% | 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 | 14.9% | 14.1% | 9.6% | 9.0% | 7.7% | 8.9% | 9.1% | — | 10.3% | 8.4% | 8.2% |
| FCF Yield | 20.8% | 18.8% | 7.9% | 6.7% | 7.8% | 8.2% | 19.6% | 15.1% | 12.0% | 6.0% | 6.4% |
| Buyback Yield | 9.6% | 8.7% | 4.8% | 1.5% | 12.6% | 13.2% | 0.0% | 0.0% | 3.2% | 3.8% | 3.1% |
| Total Shareholder Yield | 13.5% | 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 |
Promotional margin erosion
According to current market data, BBWI trades at a forward P/E of 7.67, a valuation that suggests investors are pricing in a terminal decline rather than the potential for long-term stability in the company's core fragrance and personal care segments compared to higher-multiple specialty retail peers.
The current P/S ratio of 0.63 indicates that the market is heavily discounting the company's revenue base, likely due to concerns regarding the sustainability of its promotional model. This valuation level implies that the market views BBWI as a mature, low-growth entity, contrasting sharply with the premium multiples assigned to high-growth beauty platforms like e.l.f. Beauty.
Based on reported figures, BBWI's ROIC has experienced significant volatility, peaking at 17.3% in 2023Q4 before compressing to 6.3% in 2026Q1, a trend that highlights the difficulty of maintaining high returns on invested capital while navigating a challenging retail environment and a negative equity base.
The sharp decline in ROIC suggests that the company's capital allocation strategy, while aggressive in returning cash to shareholders, may be failing to generate sufficient incremental returns on its core business operations. Investors should monitor whether this decay is structural or merely a reflection of the current cyclical downturn in discretionary spending.
As reported in financial statements, the company's cash conversion cycle has fluctuated between 27 and 66 days over the last ten quarters, reflecting a heavy reliance on seasonal inventory management to drive sales volume during critical holiday periods compared to more stable retail business models.
The wide variance in the CCC indicates that BBWI's working capital efficiency is highly sensitive to the timing of inventory build-ups and subsequent clearance sales. This volatility suggests that the company's operational leverage is tied closely to its ability to accurately forecast demand, which remains a significant risk factor.
According to recent SEC filings, the company's interest coverage ratio has compressed from 8.24 in 2023Q4 to 3.35 in 2026Q1, indicating that the firm's ability to service its debt obligations is becoming increasingly sensitive to fluctuations in operating income as the retail environment softens.
With a debt-to-EBITDA ratio of 16.14 in the most recent quarter, the company's balance sheet appears significantly strained, leaving little room for operational error. This high leverage, combined with a negative equity position, warrants further investigation into the company's long-term refinancing risks and overall financial flexibility.
As reported in financial statements, the P/E ratio is frequently misapplied to BBWI because it fails to account for the company's aggressive share repurchase program and negative equity position, which artificially inflate earnings per share and obscure the underlying health of the firm's capital structure.
Analysts should instead focus on EV/EBITDA or free cash flow yield to better understand the company's true earning power, as these metrics are less distorted by the company's capital allocation choices. Relying on P/E in this context may lead to an overly optimistic assessment of the company's valuation relative to its actual operational performance.
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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 6.7x. 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 5.9x. 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 6.7x. 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 3.83% 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.