A BUYER MIGHT PAY $85 a share roughly 10 times this fiscal year’s projected earnings before interest, taxes, depreciation, and amortization consistent with prices paid for other quality companies, versus Bed Bath & Beyond’s current modest valuation of 6.5 times. Bed Bath & Beyond has commanded an average of 15 times forward earnings in the past seven years. The company, based in Union, N.J., operates 1, 469 stores, including 1, 004 Bed Bath & Beyonds, in all 50 states. The firm’s shares have dropped 6% in the last year, even as virtually all stock relating to the advancing housing sector have surged, Bed Bath & Beyond Online Shopping.
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The business has grown immensely, with revenue hitting an estimated $10.9 billion last year, surpassing $216 million in 1992 and it’s achieved this completely with internally generated funds. Bed Bath is, run by management, led by Chief executive officer Steve Temares, also co Chairmen Feinstein and Eisenberg like it were a company. Eisenberg has 1.5%; Feinstein, 1%. Since 2004, Bed Bath & Beyond has bought back $4.7 billion worth of inventory, decreasing its share count by over 100 million, to 226 million. The firm hopes to spend about $800 million in every one of the 3 years to withdraw perhaps another 15% of its inventory. Bed Bath is among the few large retailers who pays no dividend, even though it could easily support a $1.50 annual payout, producing a 2.5% yield, and still have a good size buyback program. THE BULK OF SALES and gains come from Bed Bath shops, which take a selection of home furnishings, including towels and sheets, small kitchen appliances such as coffee makers and toasters, crystal, drapes, and image frames. Bed Bath had no immediate competition since Linens n Things was cleared in 2008 following a bankruptcy, Bed Bath & Beyond Online Shopping.