Bed Bath & Beyond’s Valuation Compared to Its Peers



Valuation multiple

The rise in Bed Bath & Beyond’s (BBBY) stock price since the beginning of 2019 has increased its valuation multiple. As of April 18, the company was trading at a forward PE ratio of 9.6x—compared to 6.8x at the beginning of 2019. Williams-Sonoma (WSM) and RH (RH) were trading at a forward PE ratios of 12.9x and 12.4x, on April 18, respectively.

Bed Bath & Beyond posted its fourth-quarter earnings on April 10. The company outperformed analysts’ EPS expectation, while its revenues fell short of analysts’ estimate. Read How Did Bed Bath & Beyond Fare in the Fourth Quarter? to learn more.

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Analysts’ recommendations

Among the 22 analysts that cover Bed Bath & Beyond, 9.1% recommended a “buy,” 72.7% recommended a “hold,” and 18.2% recommended a “sell.” Analysts have given Bed Bath & Beyond a 12-month target price of $17.87, which represents an upside potential of 2.6% from its stock price of $17.41 as of April 18.

Since the announcement of Bed Bath & Beyond’s fourth-quarter earnings, Wedbush and Telsey Advisory Group raised their target prices. Wedbush increased its target price from $14 to $19. Telsey Advisory Group increased its target price from $18 to $20.

Peer comparisons

Among the 24 analysts covering Williams-Sonoma (WSM), 4.2% recommended a “buy,” 75% recommended a “hold,” and 20.8% recommended a “sell.” Analysts have given the stock a 12-month target price of $56.13, which implies a potential fall of 2.1% from its stock price of $57.31.

Among the 22 analysts covering RH (RH), 36.4% recommended a “buy,” 59.1% recommended a “hold,” and 4.5% recommended a “sell.” Analysts have given RH a 12-month target price of $137.31, which implies a potential upside of 27.8% from its stock price of $107.42.


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