BBBY's 10-year average diluted EPS growth is approx. 15%, in a generally predictable business and stretching across one of the worst recessions in US history.
so let's stay conservative for a second... say BBBY only grows EPS at HALF that rate over the next 5 years (7.5%) and then bottoms out at a consistent 5% rate from thereon into the future. DCF with a 12% discount rate would deem the present value of BBBY to be just shy of $80, leaving a potential upside of 24% from the current share price. and that's BEFORE even accounting for the nearly $15 of current tangible book value per share.
continuing to take advantage of very cheap shares of a great company with strong FCFs while the market remains irrational. GLTA.
PUT PUT PUT PUT…BUY BUY BUY BUY…..Put those two together and you get…..
put buy, now flip that around and you get….
buy put….now add an "s" to puts and you get "buy puts"….this piece of crap is going down the toilet…..