(BBY) Best Buy Co. - NYSE
Sector: Consumer Cyclical | Industry: Specialty Retail | Exchange: NYSE (USA) | Market Cap: 15.073m USD | Total Return: 6.7% in 12m
Avg Turnover: 287M
EPS Trend: -71.5%
Qual. Beats: 0
Rev. Trend: -87.2%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Idiosyncratic Leader, Confidence
Best Buy Co., Inc. is a multinational retailer specializing in consumer electronics, computing, appliances, and mobile communications. The company utilizes an omni-channel business model, integrating physical storefronts with e-commerce platforms across the United States and Canada to distribute third-party brands and private labels like Insignia.
Beyond hardware sales, the company generates revenue through a comprehensive service ecosystem including the Geek Squad for technical support, delivery, and installation. This service-oriented approach is a common strategy in the electronics retail sector to offset lower margins on hardware and drive customer retention through membership programs.
The company also operates specialized divisions such as Best Buy Health and Best Buy Business to address professional and medical technology needs. For a deeper look into these segments, you can explore the detailed metrics on ValueRay.
Headquartered in Richfield, Minnesota, the firm has evolved from its 1966 origins as Sound of Music, Inc. into a diversified provider of smart home products, entertainment software, and digital imaging solutions.
- Paid membership growth drives recurring revenue and higher customer lifetime value
- Computing product refresh cycles accelerate revenue growth through 2025
- Services margin expansion offsets hardware price competition and promotional pressure
- High interest rates dampen consumer demand for large appliance and home theater categories
- Retail media network scaling improves enterprise operating margins via high-margin ad revenue
| Net Income: 1.14b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 1.89 > 1.0 |
| NWC/Revenue: 2.25% < 20% (prev 0.42%; Δ 1.84% < -1%) |
| CFO/TA 0.15 > 3% & CFO 2.30b > Net Income 1.14b |
| Net Debt (5.34b) to EBITDA (2.25b): 2.37 < 3 |
| Current Ratio: 1.12 > 1.5 & < 3 |
| Outstanding Shares: last quarter (211.3m) vs 12m ago -0.80% < -2% |
| Gross Margin: 22.50% > 18% (prev 22.61%; Δ -0.10% > 0.5%) |
| Asset Turnover: 288.5% > 50% (prev 293.4%; Δ -4.86% > 0%) |
| Interest Coverage Ratio: 19.75 > 6 (EBIT TTM 1.42b / Interest Expense TTM 72.0m) |
| A: 0.06 (Total Current Assets 8.74b - Total Current Liabilities 7.80b) / Total Assets 14.9b |
| B: 0.18 (Retained Earnings 2.68b / Total Assets 14.9b) |
| C: 0.10 (EBIT TTM 1.42b / Avg Total Assets 14.5b) |
| D: 0.26 (Book Value of Equity 3.08b / Total Liabilities 11.8b) |
| Altman-Z'' = 1.93 = BBB |
| DSRI: 1.21 (Receivables 906.0m/744.0m, Revenue 41.9b/41.4b) |
| GMI: 1.00 (GM 22.61% / 22.50%) |
| AQI: 0.75 (AQ_t 0.09 / AQ_t-1 0.12) |
| SGI: 1.01 (Revenue 41.9b / 41.4b) |
| TATA: -0.08 (NI 1.14b - CFO 2.30b) / TA 14.9b) |
| Beneish M = -3.00 (Cap -4..+1) = AA |
As of June 11, 2026, the stock is trading at USD 75.64 with a total of 2,708,793 shares traded.
Over the past week, the price has changed by +5.45%,
over one month by +31.27%,
over three months by +18.51% and
over the past year by +6.67%.
Best Buy Co. has received a consensus analysts rating of 3.59. Therefore, it is recommended to hold BBY.
- StrongBuy: 7
- Buy: 4
- Hold: 17
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 78.7 | 4% |
P/E Trailing = 13.2481
P/E Forward = 10.917
P/S = 0.3601
P/B = 4.8891
P/EG = 1.3642
Revenue TTM = 41.9b USD
EBIT TTM = 1.42b USD
EBITDA TTM = 2.25b USD
Long Term Debt = 1.17b USD (from longTermDebt, last fiscal year)
Short Term Debt = 625.0m USD (from shortTermDebt, last quarter)
Debt = 7.09b USD (from shortLongTermDebtTotal, last quarter) + Leases 2.97b
Net Debt = 5.34b USD (calculated: Debt 7.09b - CCE 1.75b)
Enterprise Value = 20.4b USD (15.1b + Debt 7.09b - CCE 1.75b)
Interest Coverage Ratio = 19.75 (Ebit TTM 1.42b / Interest Expense TTM 72.0m)
EV/FCF = 12.72x (Enterprise Value 20.4b / FCF TTM 1.60b)
FCF Yield = 7.86% (FCF TTM 1.60b / Enterprise Value 20.4b)
FCF Margin = 3.83% (FCF TTM 1.60b / Revenue TTM 41.9b)
Net Margin = 2.73% (Net Income TTM 1.14b / Revenue TTM 41.9b)
Gross Margin = 22.50% ((Revenue TTM 41.9b - Cost of Revenue TTM 32.4b) / Revenue TTM)
Gross Margin QoQ = 23.50% (prev 20.86%)
Tobins Q-Ratio = 1.37 (Enterprise Value 20.4b / Total Assets 14.9b)
Interest Expense / Debt = 1.01% (Interest Expense 72.0m / Debt 7.09b)
Taxrate = 26.73% (417.0m / 1.56b)
NOPAT = 1.04b (EBIT 1.42b * (1 - 26.73%))
Current Ratio = 1.12 (Total Current Assets 8.74b / Total Current Liabilities 7.80b)
Debt / Equity = 2.30 (Debt 7.09b / totalStockholderEquity, last quarter 3.08b)
Debt / EBITDA = 2.37 (Net Debt 5.34b / EBITDA 2.25b)
Debt / FCF = 3.33 (Net Debt 5.34b / FCF TTM 1.60b)
Total Stockholder Equity = 2.85b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.88% (Net Income 1.14b / Total Assets 14.9b)
RoE = 40.05% (Net Income TTM 1.14b / Total Stockholder Equity 2.85b)
RoCE = 35.38% (EBIT 1.42b / Capital Employed (Equity 2.85b + L.T.Debt 1.17b))
RoIC = 17.45% (NOPAT 1.04b / Invested Capital 5.97b)
WACC = 6.49% (E(15.1b)/V(22.2b) * Re(9.20%) + D(7.09b)/V(22.2b) * Rd(1.01%) * (1-Tc(0.27)))
Discount Rate = 9.20% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -89.89 | Cagr: -1.14%
[DCF] Terminal Value 77.97% ; FCFF base≈1.47b ; Y1≈1.68b ; Y5≈2.47b
[DCF] Fair Price = 151.2 (EV 37.2b - Net Debt 5.34b = Equity 31.9b / Shares 210.7m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -71.48 | EPS CAGR: -3.96% | SUE: 0.20 | # QB: 0
Revenue Correlation: -87.20 | Revenue CAGR: -2.13% | SUE: 0.72 | # QB: 0
EPS current Quarter (2026-07-31): EPS=1.34 | Chg30d=N/A | Revisions=+24% | Analysts=20
EPS next Quarter (2026-10-31): EPS=1.40 | Chg30d=N/A | Revisions=+5% | Analysts=20
EPS current Year (2027-01-31): EPS=6.55 | Chg30d=N/A | Revisions=+64% | GrowthEPS=+1.9% | GrowthRev=+0.7%
EPS next Year (2028-01-31): EPS=7.07 | Chg30d=N/A | Revisions=+62% | GrowthEPS=+8.0% | GrowthRev=+1.5%
[Analyst] Revisions Ratio: +64%