Stock Analysis on Net

Bed Bath & Beyond Inc. (NASDAQ:BBBY)

This company has been moved to the archive! The financial data has not been updated since September 30, 2022.

Enterprise Value to EBITDA (EV/EBITDA) 

Microsoft Excel

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Bed Bath & Beyond Inc., EBITDA calculation

US$ in thousands

Microsoft Excel
12 months ended: Feb 26, 2022 Feb 27, 2021 Feb 29, 2020 Mar 2, 2019 Mar 3, 2018 Feb 25, 2017
Net earnings (loss) (559,623) (150,773) (613,816) (137,224) 424,858 685,108
Add: Income tax expense 86,967 (185,989) (151,037) (19,385) 270,802 380,547
Earnings before tax (EBT) (472,656) (336,762) (764,853) (156,609) 695,660 1,065,655
Add: Interest expense, net 64,702 76,913 64,789 69,474 65,661 69,555
Earnings before interest and tax (EBIT) (407,954) (259,849) (700,064) (87,135) 761,321 1,135,210
Add: Depreciation and amortization 293,626 340,912 342,511 338,825 313,107 290,914
Earnings before interest, tax, depreciation and amortization (EBITDA) (114,328) 81,063 (357,553) 251,690 1,074,428 1,426,124

Based on: 10-K (reporting date: 2022-02-26), 10-K (reporting date: 2021-02-27), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-03-02), 10-K (reporting date: 2018-03-03), 10-K (reporting date: 2017-02-25).


Net earnings (loss)
The net earnings exhibit a marked downward trend over the analyzed period. Starting with a substantial profit of 685,108 thousand USD in 2017, earnings declined to 424,858 thousand USD in 2018. From 2019 onwards, the company experienced losses, with a negative net earnings figure of -137,224 thousand USD in 2019. These losses deepened significantly in 2020, reaching -613,816 thousand USD. Although the losses slightly improved in 2021 to -150,773 thousand USD, they worsened again in 2022, ending at -559,623 thousand USD.
Earnings before tax (EBT)
The earnings before tax follow a similar downward trajectory. Beginning at 1,065,655 thousand USD in 2017, the EBT declined sharply to 695,660 thousand USD in 2018. Subsequently, the figure turned negative from 2019 onwards: -156,609 thousand USD in 2019, further degrading to -764,853 thousand USD in 2020. Although some improvement was observed in 2021 (-336,762 thousand USD), the value decreased again in 2022 to -472,656 thousand USD.
Earnings before interest and tax (EBIT)
EBIT mirrored the gradual decrease seen in other profitability measures. Starting with a positive EBIT of 1,135,210 thousand USD in 2017, the figure declined to 761,321 thousand USD in 2018. Following this, the company recorded negative EBIT figures for the next four years: -87,135 thousand USD in 2019, falling substantially to -700,064 thousand USD in 2020. The 2021 and 2022 fiscal years saw improved but still negative EBIT values of -259,849 thousand USD and -407,954 thousand USD, respectively.
Earnings before interest, tax, depreciation and amortization (EBITDA)
The EBITDA data reveals a challenging financial situation with a peak in early years followed by significant volatility and negative performance. EBITDA started at 1,426,124 thousand USD in 2017 and decreased to 1,074,428 thousand USD in 2018. In 2019, EBITDA dropped drastically to 251,690 thousand USD, moving into negative territory in 2020 at -357,553 thousand USD. The company managed a slight positive turnaround in 2021, reaching 81,063 thousand USD, but the measure declined again into negative in 2022, amounting to -114,328 thousand USD.

Enterprise Value to EBITDA Ratio, Current

Bed Bath & Beyond Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in thousands)
Enterprise value (EV) 1,267,630
Earnings before interest, tax, depreciation and amortization (EBITDA) (114,328)
Valuation Ratio
EV/EBITDA
Benchmarks
EV/EBITDA, Competitors1
Amazon.com Inc. 18.16
Home Depot Inc. 16.62
Lowe’s Cos. Inc. 12.72
TJX Cos. Inc. 18.02
EV/EBITDA, Sector
Consumer Discretionary Distribution & Retail 35.77
EV/EBITDA, Industry
Consumer Discretionary 74.87

Based on: 10-K (reporting date: 2022-02-26).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

Bed Bath & Beyond Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Feb 26, 2022 Feb 27, 2021 Feb 29, 2020 Mar 2, 2019 Mar 3, 2018 Feb 25, 2017
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 2,082,901 2,720,393 1,040,356 2,704,176 3,227,847 6,721,625
Earnings before interest, tax, depreciation and amortization (EBITDA)2 (114,328) 81,063 (357,553) 251,690 1,074,428 1,426,124
Valuation Ratio
EV/EBITDA3 33.56 10.74 3.00 4.71
Benchmarks
EV/EBITDA, Competitors4
Amazon.com Inc. 28.04 21.27 32.24
Home Depot Inc. 14.08 16.53 12.34
Lowe’s Cos. Inc. 12.43 14.41 8.98
TJX Cos. Inc. 13.00 65.35 10.33
EV/EBITDA, Sector
Consumer Discretionary Distribution & Retail 20.13 20.16 24.23
EV/EBITDA, Industry
Consumer Discretionary 20.01 21.51 29.73

Based on: 10-K (reporting date: 2022-02-26), 10-K (reporting date: 2021-02-27), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-03-02), 10-K (reporting date: 2018-03-03), 10-K (reporting date: 2017-02-25).

1 See details »

2 See details »

3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 2,082,901 ÷ -114,328 =

4 Click competitor name to see calculations.


The analysis of the financial trends reveals significant fluctuations in key valuation and profitability metrics over the six-year period.

Enterprise Value (EV)
There was a marked decline in enterprise value from US$6.72 billion in 2017 to roughly US$1.04 billion in 2020, representing a substantial reduction. Though EV partially recovered to about US$2.72 billion in 2021, it decreased again to approximately US$2.08 billion in 2022. Overall, the trend shows a considerable contraction in the company's market valuation during the period.
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
EBITDA exhibited a downward trend, starting at US$1.43 billion in 2017 and declining to US$251.7 million by 2019. The company then experienced negative EBITDA values in 2020 (-US$357.55 million) and 2022 (-US$114.3 million), reflecting operational losses during those years. A small positive rebound occurred in 2021 with EBITDA at approximately US$81.1 million, but the overall trend indicates deteriorating operational profitability.
EV/EBITDA Ratio
The EV/EBITDA ratio fluctuated significantly and is partially incomplete due to missing EBITDA values. Initially, the ratio decreased from 4.71 in 2017 to 3.00 in 2018, suggesting improving valuation relative to earnings. However, a sharp increase to 10.74 in 2019 indicates a divergence between enterprise value and EBITDA. The ratio further escalated to 33.56 in 2021, reflecting the company's challenged earnings performance relative to its valuation. The absence of ratio values for 2020 and 2022 correlates with negative or missing EBITDA, preventing meaningful comparisons.

In summary, the company faced significant declines in both enterprise value and earnings over the period, with EBITDA turning negative in multiple years, denoting operational difficulties. The EV/EBITDA ratio's volatility underscores fluctuating market perceptions and earnings volatility, highlighting challenges in maintaining consistent profitability and market valuation.