Is BJ's Wholesale Club (BJ) Price Attractive After Recent Share Pullback And DCF Upside?

Simply Wall St.01-29

Wondering if BJ's Wholesale Club Holdings is still a good deal at its recent share price or if the value story has moved on? This article is built to help you make sense of what you are really paying ...

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This article is built to help you make sense of what you are really paying ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/consumer-retailing/nyse-bj/bjs-wholesale-club-holdings/news/is-bjs-wholesale-club-bj-price-attractive-after-recent-share\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"DCF","symbol_name":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","start_time":0,"source_url":"https://simplywall.st/stocks/us/consumer-retailing/nyse-bj/bjs-wholesale-club-holdings/news/is-bjs-wholesale-club-bj-price-attractive-after-recent-share","article_id":"2607081300","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/5024000-choice2-main-header/1585186860647"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/consumer-retailing/nyse-bj/bjs-wholesale-club-holdings/news/is-bjs-wholesale-club-bj-price-attractive-after-recent-share","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2607081300","pubTimestamp":1769672268,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Wondering if BJ's Wholesale Club Holdings is still a good deal at its recent share price or if the value story has moved on? This article is built to help you make sense of what you are really paying for.\nThe stock closed at US$91.58, with returns of a 3.2% decline over 7 days, 0.1% over 30 days, a 0.4% decline year to date and a 7.4% decline over the last year, while the 3 year and 5 year returns sit at 23.0% and 114.6% respectively.\nRecent news coverage has focused on BJ's role as a major...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","BK4155":"大卖场与超市","BJ":"BJ批发俱乐部","LU2237438978.USD":"Amundi Funds US Pioneer A2 (C) USD"},"translate_title":"在最近的股价回调和DCF上涨之后，BJ的批发俱乐部(BJ)价格是否有吸引力？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BJ":1.5,"DCF":1.5},"content_text":"Wondering if BJ's Wholesale Club Holdings is still a good deal at its recent share price or if the value story has moved on? This article is built to help you make sense of what you are really paying for. The stock closed at US$91.58, with returns of a 3.2% decline over 7 days, 0.1% over 30 days, a 0.4% decline year to date and a 7.4% decline over the last year, while the 3 year and 5 year returns sit at 23.0% and 114.6% respectively. Recent news coverage has focused on BJ's role as a major warehouse club operator in the US consumer retailing space and on how membership based models can respond differently to changing shopper habits. This context helps frame how investors might think about the stock's price moves and whether the current level reflects caution, confidence or something in between. Simply Wall St currently gives BJ's Wholesale Club Holdings a valuation score of 4 out of 6, which means it screens as undervalued on four of six checks. Next we will unpack how different valuation methods line up on the stock before finishing with a way to look at value that goes beyond the usual models.  Find out why BJ's Wholesale Club Holdings's -7.4% return over the last year is lagging behind its peers. AdvertisementApproach 1: BJ's Wholesale Club Holdings Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow model takes projected future cash flows and then discounts them back to what they could be worth today, using a required rate of return. It is essentially asking what you might be paying now for the cash the business is expected to generate over time. For BJ's Wholesale Club Holdings, the latest twelve month free cash flow stands at about $338.1 million. Analysts provide $246.4 million to $741 million of free cash flow projections out to 2030, and Simply Wall St then extends these further using its own estimates within a 2 Stage Free Cash Flow to Equity framework. When all those projected cash flows are discounted back and added up, the model arrives at an estimated intrinsic value of $151.26 per share. Compared with the recent share price of $91.58, this implies the stock screens as 39.5% undervalued under this specific DCF setup. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests BJ's Wholesale Club Holdings is undervalued by 39.5%. Track this in your watchlist or portfolio, or discover 878 more undervalued stocks based on cash flows. BJ Discounted Cash Flow as at Jan 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for BJ's Wholesale Club Holdings. Approach 2: BJ's Wholesale Club Holdings Price vs Earnings For a profitable company, the P/E ratio is a straightforward way to gauge what you are paying for each dollar of earnings, which is why it is the preferred multiple here. A higher or lower P/E often reflects what the market is pricing in around future growth and risk, with stronger growth or lower perceived risk usually supporting a higher “normal” P/E. BJ's Wholesale Club Holdings currently trades on a P/E of 20.83x. That sits close to both the Consumer Retailing industry average P/E of 21.26x and the peer average of 21.86x, so on simple comparisons the stock is priced roughly in line with similar businesses. Simply Wall St also calculates a “Fair Ratio” of 18.91x. This is the P/E it would expect given factors such as BJ’s earnings growth profile, industry, profit margins, market cap and risk characteristics. This Fair Ratio can be more informative than a basic peer or industry check because it adjusts for the company’s own fundamentals rather than assuming all retailers deserve the same multiple. Compared with the current P/E of 20.83x, the Fair Ratio points to BJ’s screening as slightly overvalued on this metric. Result: OVERVALUED NYSE:BJ P/E Ratio as at Jan 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1417 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your BJ's Wholesale Club Holdings Narrative Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which are simply your story about a company linked directly to your numbers such as fair value, and your expectations for revenue, earnings and margins. A Narrative joins what you believe about a business to a clear financial forecast, then to a fair value estimate, so you can see how your view translates into numbers rather than relying only on one model like a DCF or a P/E comparison. On Simply Wall St, millions of investors use Narratives inside the Community page as an easy, visual tool where you set your assumptions, see the fair value that falls out, and compare it with the current share price to decide whether BJ's Wholesale Club Holdings looks expensive, cheap or roughly in line with your view. Because Narratives update automatically when new news, results or other data points are added, your view of BJ's Wholesale Club Holdings can move in real time. One investor might, for example, see strong membership resilience and assign a higher fair value, while another focuses on competition and uses more cautious assumptions, leading to a lower fair value. Do you think there's more to the story for BJ's Wholesale Club Holdings? Head over to our Community to see what others are saying! NYSE:BJ 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if BJ&#39;s Wholesale Club Holdings might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. 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