EN DE

Best Buy Co. Inc (BBY) Fair Value & Analysis

Consumer Cyclical · US · Market cap $17.7B · ISIN US0865161014

What is Best Buy Co. Inc really worth?

BB Best Buy Co. Inc logo Best Buy Co. Inc BBY · US
Price$87.49
Fair Value$108.04
Upside+23.5%
Quality72/100

A solid business, trading 19% below our fair value of $108.04.

Watch Best Buy Co. Inc for free, get notified when fair value or trend changes. Plus fair value for all 35,000+ stocks, 14 days of Pro free, no card. Watch for free

Strengths

Low debt · generates free cash flow
Ranks above peers (10/15)

Risks

!Weak Growth (revenue 5y −2.5 %/yr)
!Thin margins · 2.7% net margin
!Moderate moat 56/100
!Weak on future: 10 out of 100

For context

·4.35% dividend yield
Evidence: High Range $69.50 – $139.48

Fair value as of: Aug 30, 2026

From 26 valuation models · updated 6 days ago

Share price +1.3% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • A fairly wide model range ($69.50 to $139.48) leaves room in how you read the outcome.
  • The price sits in the lower half of our model range, the side with the larger margin of safety.
  • The data supports the verdict: every model runs on fully documented inputs.

Price vs Fair Value (5 years)

$110.39 $52.33 Fair Value $108.04 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.

How to read this chart

60‑month range $52.33 – $110.39 · fair‑value band $69.50 – $139.48 · the $87.49 price screens below the $108.04 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 30, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

Best Buy Co. Inc (BBY) currently trades at $87.49, while our model-based Fair Value estimate is $108.04, implying the stock looks roughly 19.0% undervalued today. The Quality Score stands at 72/100 (solid quality), in the Consumer Cyclical sector. Bull case: the Multiples group reads highest at a median of $110.66 per share, and 16 of the 26 models we run sit above the $87.49 price. Bear case: the Earnings-Based group reads lowest at $26.53, and 10 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Best Buy Co. Inc generated revenue of $41.9B at a net margin of 2.7%. Revenue grew 1.9% year over year. It earns a return on equity of 39.1%. Net debt stands at $2.4B. Fundamentals as of Aug 30, 2026

Our scenario range runs from $69.50 (bear case) to $139.48 (bull case); at $87.49, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 59% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −26% fair-value upside, at 23%, BBY screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 7 months have passed since. In that time the company retained roughly $0.9409 per share, which is 0.9 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF $68.35 $101.11 $149.42 80
Growth DCF $69.89 $99.58 $141.11 79
Owner Earnings $65.12 $96.26 $142.19 76
All 26 models by family
DCF Models
FCF DCF $68.35 $101.11 $149.42 80
Owner Earnings $65.12 $96.26 $142.19 76
5Y Revenue Exit $72.09 $112.42 $163.05 72
5Y EBITDA Exit $88.73 $142.77 $204.56 75
5Y P/E Exit $73.65 $115.26 $157.73 71
10Y Revenue Exit $67.86 $104.00 $150.72 66
10Y EBITDA Exit $80.60 $124.79 $181.68 68
10Y P/E Exit $71.08 $105.95 $146.76 64
Earnings-Based
Graham-Dodd $34.49 $94.03 $123.29 65
Lynch FV $18.57 $26.53 $34.48 61
PEG = 1.0 $18.57 $26.53 $34.48 57
EPV $66.66 $77.31 $86.64 74
Dividend Discount
Gordon GGM $34.89 $72.55 $115.10 66
DDM Multi-Stage $34.89 $54.59 $75.50 66
Multiples
P/E Multiple $83.69 $111.58 $139.48 63
P/S Multiple $64.67 $86.22 $107.78 58
P/B Multiple $42.19 $56.25 $70.31 55
EV/EBIT $114.81 $152.17 $189.54 66
EV/EBITDA $112.93 $149.67 $186.40 67
EV/Revenue $78.28 $110.66 $143.04 54
Asset-Based
NCAV (Graham) $7.03 $9.42 $14.06 54
Growth DCF
Growth DCF $69.89 $99.58 $141.11 79
Rev-Margin DCF $72.09 $112.66 $157.64 72
Economic Profit
Residual Income $29.78 $35.87 $136.64 64
ROIC Compounder $68.79 $82.34 $95.97 72
Growth Earnings
Growth-Adj P/E $65.97 $94.24 $122.51 67

Widest divergence: Multiples ($110.66) versus Asset-Based ($9.42). Highest evidence: FCF DCF (80).

Notify me when BBY reaches fair value

Put BBY on your watchlist. We get in touch as soon as price and fair value meet or the trend turns.

Set up alert →

Free, no payment details. Unsubscribe anytime in one click.

Key figures & financial health

P/E ratio 16.2
P/S ratio 0.42 P/E × margin
EPS (TTM) $5.40 price ÷ EPS = P/E 16.2
Dividend yield 4.4% payout 70.6%
Net margin 2.6% FY2026
Return on equity 39.1% TTM
More key figures
Profitability
Return on assets (EBIT) 12.5% avg 5y
Operating margin 4.0% TTM
Growth
Revenue (TTM) $41.9B TTM
Revenue growth (YoY) +1.9% 3y avg −3.4%
EPS growth (YoY) +37.9%
Balance sheet & cash flow
Free cash flow $1.3B FY2026
Net debt $2.4B FY2026 · ≈ 1.9 yrs of FCF

Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 72/100

Of which business quality 70 · Market factors (momentum, volatility) 66

Profitability 75
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 48
Earnings quality: real cash, not paper profit
Fin. Strength 68
Balance sheet, leverage, solvency risk
Investment 97
Disciplined investing over empire-building
Low Volatility 43
Calm price path (market factor)
Momentum 74
Price trend over the last 3–12 months (market factor)
52W Momentum 80
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Best Buy Co., Inc. offers technology products and solutions in the United States, Canada, and internationally. The company provides computing and mobile phone products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer …

Full company description

Best Buy Co., Inc. offers technology products and solutions in the United States, Canada, and internationally. The company provides computing and mobile phone products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer electronics consisting of digital imaging, health and fitness products, portable audio comprising headphones and portable speakers, and smart home products, as well as home theaters that includes home theater accessories, soundbars, and televisions. It also offers appliances, such as dishwashers, laundry, ovens, refrigerators, blenders, coffee makers, vacuums, and personal care; entertainment products consisting of drones, peripherals, gaming, toys, and virtual reality, as well as hardware and software, and augmented reality glasses and other software products; and other products, such as baby, food and beverage, luggage, and outdoor living products. In addition, the company provides delivery, installation, marketplace commissions, memberships, repair, set-up, technical support, health-related, and warranty-related services. It offers its products through stores and websites under the Best Buy, Best Buy Ads, Best Buy Business, Best Buy Essentials, Best Buy Health, Best Buy Marketplace, Geek Squad, Imagine That, Insignia, Lively, Jitterbug, My Best Buy, My Best Buy Memberships, Pacific Kitchen, Home, TechLiquidators, and Yardbird brand names, as well as domain names comprising bestbuy.com, lively.com, techliquidators.com, yardbird.com, bestbuy.ca, and techliquidators.ca. The company was formerly known as Sound of Music, Inc. Best Buy Co., Inc. was incorporated in 1966 and is headquartered in Richfield, Minnesota.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Best Buy Co. Inc reported revenue of $41.7B in FY2026 versus $51.8B in FY2022, a compound −5.3%/yr. Reported net income was $1.1B in FY2026, compounding −18.8%/yr from FY2022.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
$41.7B
Latest YoY
+0.4%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−3.4%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−2.5%
Avg. revenue growth/yr (40Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.9%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, adjusted) plus dividend yield: value created per share and year.
−0.1% (−4.5 + 4.4)
Revenue −5.3%/yr
FY22 $51.8B
FY23 $46.3B
FY24 $43.5B
FY25 $41.5B
FY26 $41.7B
Net income −18.8%/yr
FY22 $2.5B
FY23 $1.4B
FY24 $1.2B
FY25 $927M
FY26 $1.1B
Character of growth · EPS growth decomposed (2015-2026) +4.8 % p.a.
Revenue per share +6.0 %

of which total revenue +0.7 % · buybacks/dilution +5.3 %

EBIT margin +0.2 %
Tax rate +0.3 %
Residual (interest, one-offs) −1.5 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

Watch BBY: get an alert when its fair value changes →

Share or link this analysis
𝕏 Post WhatsApp LinkedIn Reddit
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

Cite: Fair Value Calculator (2026). "Best Buy Co. Inc Fair Value". https://www.fairvalue-calculator.com/stock/BBY

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Specialty Retail · 219 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 72 · Top 25%
Fair Value upside +24% · Above median
Return on equity (TTM) 39% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 3% · Above median
Operating margin (TTM) 4% · Above median
Revenue growth 2% · Below median
Dividend yield (TTM) 4.4% · Above median
Debt / equity 0.39× · Higher than median

Valuation Multiples vs Specialty Retail median · lower = cheaper

P/E (TTM) 16.2× · Cheaper than median
P/B 5.97× · Pricier than 75% of peers
P/S (TTM) 0.42× · Cheaper than median
P/FCF 14.1× · Pricier than 75% of peers
EV/EBITDA 6.5× · Cheaper than median
PEG 1.56× · Pricier than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE65 · sector 30
FUTURE10 · sector 25
PAST100 · sector 27
HEALTH80 · sector 96
DIVIDEND87 · sector 56

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Specialty Retail stocks, each showing price versus our Fair Value estimate (as of Aug 30, 2026).

Stock Price Fair Value vs Fair Value
Alimentation Couche-Tard Inc ATD C$89.93 C$104.32 +16%
Casey's General Stores, Inc CASY $755.47 $398.90 −47%
Williams-Sonoma, Inc WSM $235.09 $162.63 −31%
Ulta Beauty, Inc ULTA $537.10 $475.40 −11%
DICK'S Sporting Goods, Inc DKS $202.66 $181.10 −11%
China Tourism Group 601888 ¥54.97 ¥40.40 −27%
Tractor Supply Company TSCO $34.72 $35.52 +2%
Five Below, Inc FIVE $259.41 $117.29 −55%
Murphy USA Inc MUSA $574.12 $423.35 −26%
Taiwan Mobile Co 3045 116.00 TWD 80.98 TWD −30%

Compare Best Buy Co. Inc with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Consumer Cyclical stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Try a ready-made strategy

Pick a strategy and jump into the live analysis with that exact screen applied.

🥇 Backtested Best 🏆 Big Names ⭐ Top Rated 💎 Quality on Sale 🚀 Profitable Growth 🧊 Quality Compounders 💵 Dividend Stars 📈 Strong Momentum 📉 Fallen Angels ⚖️ Deeply Undervalued 🔍 Small-Cap Gems 🏰 Moat at a Fair Price 💼 Insider Buying 🎩 Buffett-Style Quality 📚 Peter Lynch GARP 🧮 Greenblatt Magic Formula 🛡️ Graham Defensive

Discover tools

Stock screener Filter by region, size and sector Compare tool Two stocks side by side Extrinsic Value Calculator (Options) Splits an option premium into intrinsic and extrinsic (time) value. Peter Lynch Fair Value Formula & Calculator Apply Peter Lynch's fair value formula in seconds: fair P/E ≈ earnings growth (+ dividend) - free, with formula and example.

Frequently asked questions

Is Best Buy Co. Inc (BBY) overvalued or undervalued?
As of Aug 30, 2026, our model estimates a fair value of $108.04 versus a price of $87.49, about +23% upside (undervalued).
What is the fair value of BBY?
Our model-based fair value for Best Buy Co. Inc is $108.04 (as of Aug 30, 2026), built from audited fundamentals. The current price: $87.49.
What is the quality score of BBY?
Best Buy Co. Inc has a Quality Score of 72/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Best Buy Co. Inc (BBY)?
Best Buy Co. Inc reported trailing-twelve-month revenue of about $41.9B (latest available figure, as of Aug 30, 2026).
What is the net profit margin of BBY?
The net profit margin of Best Buy Co. Inc is about 2.7%, meaning it keeps roughly 2.7% of revenue as net income. Based on the latest reported figures.
Does Best Buy Co. Inc pay a dividend?
Best Buy Co. Inc currently shows a dividend yield of about 4.35% relative to its recent price (as of Aug 30, 2026).
Free · no account needed

Watch Best Buy Co. Inc in the live analysis

One click puts Best Buy Co. Inc on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 35,000+ stock screener. You can also try 14 days of Pro there, no card.

Watch for free →

Zero risk: nothing is ever charged. Your watchlist is yours, with or without an account.