BBY Stock Analysis: Best Buy Co. | NYSE
Specialty Retail | NYSE, USA | Market Cap: 18.450m USD | 12M Return: 18.4% | US0865161014 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 291M
EPS Trend: 50.8%
Qual. Beats: 4
Rev. Trend: -74.0%
Qual. Beats: 1
Warnings
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Best Buy Co., Inc. is a U.S.-based omnichannel retailer of consumer technology, appliances, and related services, operating primarily in the United States and Canada. The company sells computing and mobile phone products, tablets, smartwatches, consumer electronics, home theater equipment, household appliances, and entertainment products such as gaming hardware and drones. In addition to merchandise, it generates revenue from delivery, installation, repair, technical support, warranty services, and its Geek Squad service brand, which differentiates its offering from pure e-commerce competitors. Best Buy markets products under multiple proprietary and private-label brands, including Best Buy, Geek Squad, Insignia, Pacific Kitchen & Home, and Lively/Jitterbug (its connected health device lines), distributing through physical stores and websites such as bestbuy.com and bestbuy.ca. Founded in 1966 (originally as Sound of Music, Inc.) and headquartered in Richfield, Minnesota, the company operates within the Consumer Discretionary sector under the Computer & Electronics Retail sub-industry, a category that has faced ongoing pressure from online-only competitors and shifting consumer electronics demand cycles.
- Consumer electronics demand softens on macro pullback
- Margin pressure from competition and promotional pricing
- Geek Squad services revenue growth supports margin expansion
- Buyback program and dividend yield attract income investors
- Smartphone upgrade cycle drives computing and mobile phone sales
| Net Income: 1.27b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 2.11 > 1.0 |
| NWC/Revenue: 2.48% < 20% (prev 0.78%; Δ 1.70% < -1%) |
| CFO/TA 0.15 > 3% & CFO 2.48b > Net Income 1.27b |
| Net Debt (4.84b) to EBITDA (2.58b): 1.88 < 3 |
| Current Ratio: 1.12 > 1.5 & < 3 |
| Outstanding Shares: last quarter (212.7m) vs 12m ago 0.09% < -2% |
| Gross Margin: 22.68% > 18% (prev 22.54%; Δ 0.13% > 0.5%) |
| Asset Turnover: 269.1% > 50% (prev 272.7%; Δ -3.58% > 0%) |
| Interest Coverage Ratio: 39.60 > 6 (EBIT TTM 1.78b / Interest Expense TTM 45.0m) |
| A: 0.06 (Total Current Assets 9.98b - Total Current Liabilities 8.94b) / Total Assets 16.1b |
| B: 0.17 (Retained Earnings 2.78b / Total Assets 16.1b) |
| C: 0.11 (EBIT TTM 1.78b / Avg Total Assets 15.7b) |
| D: 0.25 (Book Value of Equity 3.18b / Total Liabilities 12.9b) |
| Altman-Z'' = 2.01 = BBB |
| DSRI: 0.99 (Receivables 922.0m/917.0m, Revenue 42.2b/41.6b) |
| GMI: 0.99 (GM 22.54% / 22.68%) |
| AQI: 0.78 (AQ_t 0.08 / AQ_t-1 0.10) |
| SGI: 1.01 (Revenue 42.2b / 41.6b) |
| TATA: -0.07 (NI 1.27b - CFO 2.48b) / TA 16.1b) |
| Beneish M = -3.16 (Cap -4..+1) = AA |
As of October 08, 2026, the stock is trading at USD 84.59 with a total of 4,352,017 shares traded. Over the past week, the price has changed by -4.14%, over one month by -4.31%, over three months by +8.58% and over the past year by +18.43%.
Current recommended Stop Loss: 81.00 (which is 4.2% or 1.3 ATR below the current price).
Best Buy Co. has received a consensus analysts rating of 3.20. Therefore, it is recommended to hold BBY.
- StrongBuy: 4
- Buy: 0
- Hold: 19
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 87 | 2.8% |
P/E Trailing = 14.6373
P/E Forward = 13.587
P/S = 0.4372
P/B = 5.9828
P/EG = 1.6991
Revenue TTM = 42.2b USD
EBIT TTM = 1.78b USD
EBITDA TTM = 2.58b USD
Long Term Debt = 1.16b USD (from longTermDebt, last quarter)
Short Term Debt = 625.0m USD (from shortTermDebt, last quarter)
Debt = 7.10b USD (from shortLongTermDebtTotal, last quarter) + Leases 2.96b
Net Debt = 4.84b USD (calculated: Debt 7.10b - CCE 2.25b)
Enterprise Value = 23.3b USD (18.4b + Debt 7.10b - CCE 2.25b)
Interest Coverage Ratio = 39.60 (Ebit TTM 1.78b / Interest Expense TTM 45.0m)
EV/FCF = 13.17x (Enterprise Value 23.3b / FCF TTM 1.77b)
FCF Yield = 7.59% (FCF TTM 1.77b / Enterprise Value 23.3b)
FCF Margin = 4.19% (FCF TTM 1.77b / Revenue TTM 42.2b)
Net Margin = 3.01% (Net Income TTM 1.27b / Revenue TTM 42.2b)
Gross Margin = 22.68% ((Revenue TTM 42.2b - Cost of Revenue TTM 32.6b) / Revenue TTM)
Gross Margin QoQ = 23.91% (prev 23.52%)
Tobins Q-Ratio = 1.45 (Enterprise Value 23.3b / Total Assets 16.1b)
Interest Expense / Debt = 0.63% (Interest Expense 45.0m / Debt 7.10b)
Taxrate = 26.91% (468.0m / 1.74b)
NOPAT = 1.30b (EBIT 1.78b * (1 - 26.91%))
Current Ratio = 1.12 (Total Current Assets 9.98b / Total Current Liabilities 8.94b)
Debt / Equity = 2.23 (Debt 7.10b / totalStockholderEquity, last quarter 3.18b)
Debt / EBITDA = 1.88 (Net Debt 4.84b / EBITDA 2.58b)
Debt / FCF = 2.74 (Net Debt 4.84b / FCF TTM 1.77b)
Total Stockholder Equity = 2.97b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.11% (Net Income 1.27b / Total Assets 16.1b)
RoE = 42.82% (Net Income TTM 1.27b / Total Stockholder Equity 2.97b)
RoCE = 43.16% (EBIT 1.78b / Capital Employed (Equity 2.97b + L.T.Debt 1.16b))
RoIC = 22.91% (NOPAT 1.30b / Invested Capital 5.69b)
WACC = 6.07% (E(18.4b)/V(25.5b) * Re(8.22%) + D(7.10b)/V(25.5b) * Rd(0.63%) * (1-Tc(0.27)))
Discount Rate = 8.22% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -90.46 | Cagr: -0.93%
[DCF] Terminal Value 77.97% ; FCFF base≈1.60b ; Y1≈1.84b ; Y5≈2.70b
[DCF] Fair Price = 170.8 (EV 40.7b - Net Debt 4.84b = Equity 35.8b / Shares 209.7m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 50.82 | EPS CAGR: 1.22% | SUE: 1.41 | # QB: 4
Revenue Correlation: -73.98 | Revenue CAGR: -1.39% | SUE: 1.28 | # QB: 1
EPS current Quarter (2026-10-31): EPS=1.49 | Chg30d=+7.15% | Revisions=+75% | Analysts=20
EPS current Year (2027-01-31): EPS=6.83 | Chg30d=-0.02% | Revisions=+86% | GrowthEPS=+6.2% | GrowthRev=+2.4%
EPS next Year (2028-01-31): EPS=7.21 | Chg30d=+0.14% | Revisions=+86% | GrowthEPS=+5.6% | GrowthRev=+1.5%
[Analyst] Revisions Ratio: +91% (up=54, down=1)