Folks,
What are we thinkin about BBW after today's \~30% drop? Revenue is shrinking, I get that.
However, using roughly $35M normalized annual FCF as a starting point, I ran a pretty basic DCF with ChatGPT with these assumptions: 3% FCF growth for years 1–5, 2% growth years 6–10, 2% terminal growth, 10.5% discount rate, and \~$14M cash/essentially no debt.
Getting fair value around **$37/share**. Bear case assuming weaker \~$32M FCF, minimal growth and a 12% discount rate gives me roughly $25/share.
Not saying it’s a screaming buy, but the valuation looks much more interesting after today’s selloff.