Premium Essay

Bed Bath and Beyond

In: Business and Management

Submitted By gs2861
Words 24507
Pages 99
Valued at 1 April, 2007

Matthew Lewis: matthew.lewis@ttu.edu
Tyler Page: tyler.page@ttu.edu
Alex Segreti: alexander.l.segreti@ttu.edu
Andrea Spencer: andrea.spencer@ttu.edu
Stephen Wiggins: stephen.wiggins@ttu.edu

Table of Contents
Executive Summary
Business & Industry Analysis.
Five Forces Model
Rivalry Among Existing Firms
Threat of New Entrants
Threat of Substitute Products
Bargaining Power of Buyers
Bargaining Power of Suppliers
Competitive Advantage Analysis
Key Success Factors
Accounting Analysis
Key Accounting Policies
Accounting Flexibility
Accounting Strategy
Quality of Disclosure
Revenue Manipulation Diagnostics
Expense Manipulation Diagnostics
Potential “Red Flags”
Undo Accounting Distortions
Ratio Analysis Forecast Financials
Liquidity Analysis
Profitability Analysis
Capital Structure Analysis
Extended Ratio Analysis
SGR and IGR Analysis
Forecasting
Valuation Analysis
Cost of Equity
Cost of Debt
WACC
Method of Comparables
Intrinsic Valuation Models
Altman Z-Score
Analyst Recommendation
Appendix
Works Cited

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Executive Summary
Investment Recommendation: Overvalued, Sell
BBBY – NASDAQ $40.40
52 week range $30.92 - $43.32
Revenue (2006) $5,809,562,000
Market Capitalization $11.75 Billion
Shares Outstanding 283,380,000
3-month Avg. Daily Trading Volume 2,332,640
Institutional Ownership 83.40%
Insider Ownership 3.70%
Book Value Per Share (mrq) $9.35
ROE 25.99%
ROA 17.90%
Est. 5 year EPS Growth Rate 9.00%
Cost of Capital Est.
R2
Beta
Ke
Ke Estimated
13.01%
10-Year
37.4 2.28 15.87%
7-Year
37.4 2.28 12.56%
5-Year
37.5 2.29 12.62%
1-Year
37.8 2.30 12.71%
3-Month
37.8 2.31 13.01%
Published
1.76
Kd BBBY: 5.74% Revised: 2.66%
WACC BBBY:...

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