Considering an Investment in Bath & Body Works (BBWI)? Read This!

By Kim Brooks • Thursday, December 15 10:01 • Permanent Link

Bath & Body Works investors watched their shares sink by -3.6% this morning to a price of $40.7. Some of you might be wondering if it's time to buy the dip. If you are considering this, make sure to check the company's fundamentals first to determine if the shares are fairly valued at today's prices.

Bath & Body Works, Inc. operates a specialty retailer of home fragrance, body care, and soaps and sanitizer products. The company belongs to the Consumer Cyclical sector, which has an average price to earnings (P/E) ratio of 24.11. In contrast, Bath & Body Works has a trailing 12 month P/E ratio of 7.1. The company's price to earnings growth (PEG) ratio is 1.14 tells us the company is fairly valued in terms of growth. PEG ratios under 1 are considered an indicator of undervalued growth.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.