At just $2.8 billion in market value, or less than $20 per share, Bed Bath & Beyond is now noticeably cheap.
(Bloomberg Gadfly)—Bed Bath & Beyond Inc.’s perpetual discounts, in coupon form, are so well-known that they regularly make it into comedy bits. But few investors are laughing — the retailer’s shares recently fell to their lowest level since 2000, hurt partly by all this price-cutting.
At just $2.8 billion in market value, or less than $20 per share, Bed Bath & Beyond is now noticeably cheap. With an enterprise value of a little less than 4 times forward Ebitda (including existing debt totaling just 1.5 times Ebitda), the company makes an appealing buyout target.