BBBY

**dchamber** Thu Feb 09, 2006 4:12 pm

BBBY
BBBY

Current P/E 19.8 and their 10 year average is 33.
EPS growth over the last 10 years is average 32% annually. Analyst estimated a future EPS growth rate of 17.5%.
The current ration is 2.5.
ROE has been over 20% each year for the last 10 years.
The book value is steadily increasing at an average of 36% annually over the last 10 years.
They are buying back their stock.

If I forecast EPS growth at 15% (lower than analysts) and use the lower industry P/E of 22 in place of the 10 year average 33 I get a price target $145-$155 in 10 years which would give you a 15% annualized gain.

If I use the analyst EPS growth rate and the companies average 10 year P/E I could see an annualized gain of over 21%.

This seems to be a stable company which should help preserver you principle. I’ve been very concretive with my numbers to build in a margin of safety.

**blast_investor** Thu Feb 09, 2006 7:54 pm

This stock has excellent business model. It has high return on asset ratio, very well run company.

The stock price is not cheap so this is not type of stocks that I am looking for. But if you are confident on its growth with your own research, this is worth long term investment.