NYSE
BBY
Last Price
US $83.98
KEY FIGURES
MKT CAP
$17.7B
EPS
TTM
$5.43
PEG
TTM
0.49x
P/E
TTM
15.46x
P/S
TTM
0.42x
YIELD
4.55%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
31.63%
Return on equity
ROIC: 18.29%
Valuation History
20.1X
Price to Earnings
EV/EBITDA: 9.5X
Cash flow
Profit margin
-2.48%
(FY vs FY)
EBITDA Y/Y
-6.93%
(FY vs FY)
Cash flow Y/Y
-21.48%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $83.98
-82.17%
Default assumptions
EBITDA Multiple
Fair Value
Market $83.98
-22.83%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Best Buy Co., Inc. cash flow to debt ratio of 47.47% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial risk - Healthy cash flow growth.
Best Buy Co., Inc.'s free cash flow has decreased -9.63% from $1.39G last year to $1.26G, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
Best Buy Co., Inc.'s debt to equity ratio is 1.34, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
Best Buy Co., Inc.'s debt has decreased relative to shareholder equity from 1.44 last year to 1.34 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
Best Buy Co., Inc. has a net debt to EBITDA ratio of 1.05x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Best Buy Co., Inc.'s interest coverage ratio of 38.76 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
Best Buy Co., Inc.'s profit margin has increased (22.32%) in the last year from 2.23% to 2.73%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
Best Buy Co., Inc.'s short-term assets of $8.50G exceed its short-term liabilities of $7.68G
Increasing performance - ROA.
Best Buy Co., Inc.'s return on assets of 7.68% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Best Buy Co., Inc.'s return on equity of 40.05%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Best Buy Co., Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Best Buy Co., Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Best Buy Co., Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Best Buy Co., Inc. has a free cash flow yield of 7.11%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Best Buy Co., Inc.'s yearly earnings has increased 15.32% since last year from $927.00M to $1.07G, signaling increasing performance
Increasing performance - Healthy revenue growth.
Best Buy Co., Inc.'s yearly revenue has increased 0.39% since last year from $41.53G to $41.69G, signaling increasing performance
Increasing performance - ROIC.
ROIC 16.89% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Decreasing performance - 3-year revenue CAGR.
Best Buy Co., Inc.'s 3-year revenue CAGR of -3.43% is negative, indicating declining revenue over the past 3 years
Decreasing performance - Revenue consistency.
Best Buy Co., Inc. had revenue growth in only 2.00 out of 5 years, indicating inconsistent revenue performance
Increasing performance - ROE consistency.
Best Buy Co., Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Best Buy Co., Inc. is overvalued relative to its fair value price of 14.97 based on Discounted Cash Flow model
Undervalued - Earnings yield.
Best Buy Co., Inc. has an earnings yield of 6.47%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Best Buy Co., Inc. is overvalued relative to its fair value price of 64.81 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Best Buy Co., Inc. has an EV/EBITDA ratio of 8.81x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
Best Buy Co., Inc. has a PEG-ratio under 1 which is considered undervalued
Overvalued - P/B ratio.
Best Buy Co., Inc. has a price-to-book ratio of 5.73x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value
Undervalued - P/S ratio.
Best Buy Co., Inc. has a price-to-sales ratio of 0.42x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue