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BBY

S&P 500
Favorable · 64/100

Best Buy

Consumer Discretionary
Computer & Electronics Retail

$76.01

1.7%

Updated Today 6:01 PM ET

Price — Past Year

▲ Up 10.3% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$15.75B

P/E

13.94x

Forward P/E (est.)

10.54x

ROE

40.1%

Revenue Growth

1.0%

EPS Growth

32.3%

Profit Margin

2.7%

FCF Yield

13.3%

Debt / Equity

0.4x

ROIC

26.0%

Interest Coverage

29.55x

Current Ratio

1.12x

Dividend Yield

5.0%

Implied Growth (rev. DCF)

0.9%

Rating Score

64/100

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what BBY's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. BBY trades near $76.01, above its 50-day average ($64.99) and 200-day average ($69.86). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 46 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. BBY's is $2.77 (~3.6% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month BBY found buyers near $57.01 (support) and sellers near $79.51 (resistance); its 52-week range is $55.10–$84.99. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.7× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Business Overview
Research

Best Buy (BBY) is a large-cap company in the Computer & Electronics Retail industry, part of the Consumer Discretionary sector of the S&P 500, with a market value around $15.75B.

In its latest reported year it generated about $41.69B in revenue and $1.07B in net profit.

Our model rates BBY Favorable (64/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Revenue Growth
Research

4Y CAGR

-5.3%

Revenue moved from $51.76B in 2022 to $41.69B in 2026, a -5.3% compound annual growth rate. The most recent year was roughly flat (1.0%) year over year. Slower, mature growth is common for established businesses.

Profitability
Research

Gross Margin

22.5%

Operating Margin

3.3%

Net Margin

2.6%

ROE

40.1%

Best Buy keeps about 2.7% of each sales dollar as net profit, with a 22.5% gross margin and 3.3% operating margin. Return on equity is 40.1% and return on invested capital about 26.0%. Thin margins leave less cushion if costs rise.

Debt Analysis
Research

Total Debt

$1.17B

Net Debt

-$584.00M

Net cash position

Net Debt / EBITDA

-0.42x

Debt / Equity

0.4x

Leverage: debt-to-equity is 0.4x, and operating profit covers interest about 29.6x, with a current ratio of 1.1x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $1.17B of total debt against $1.75B of cash.

Cash Flow Analysis
Research

Operating CF

$1.96B

Free Cash Flow

$1.26B

FCF Margin

3.0%

In the latest year Best Buy produced about $1.96B of operating cash flow and $1.26B of free cash flow after capital spending. That is a free-cash-flow yield of about 13.3% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.

Valuation Analysis
Research

P/E

13.94x

P/S

0.39x

P/B

4.61x

EV / EBITDA

6.91x

BBY trades at 13.9x trailing earnings (about 10.5x on estimated forward earnings), 0.4x sales, and 4.6x book value. Reverse-engineering today's price implies the market expects roughly 0.9% long-term free-cash-flow growth. That is an undemanding multiple — potentially cheap if the business is stable.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
13.9xCheap
Forward P/E
10.5xCheap
P/S ratio
0.4xCheap
Revenue growth
1.0%Weak
EPS growth
32.3%Strong
Gross margin
22.5%Weak
Net margin
2.7%Weak
ROE
40.1%Strong

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How BBY stacks up against its Consumer Discretionary peers — valuation, profitability, and growth versus the sector median.

In the Consumer Discretionary sector (48 S&P 500 companies), BBY ranks #11 of 48 by our overall rating. It trades at a discount versus the sector on earnings (13.9x P/E vs. 23.7x median) with a higher return on equity (40.1% vs. 39.2%) and slower revenue growth (1.0% vs. 6.2%).

P/E vs sector

13.9x

median 23.7x

ROE vs sector

40.1%

median 39.2%

Growth vs sector

1.0%

median 6.2%

Sector rank

#11

of 48 by rating

CompanyP/ERev Gr.Rating
BBYThis stock13.9x1.0%Favorable· 64
TSCO14.5x4.6%Neutral· 54
DECK15.2x9.8%Strong· 76
GPC4.8%Weak· 27
NVR14.3x-7.7%Neutral· 55
APTV36.9x5.2%Weak· 36
LULU9.3x4.2%Favorable· 60
ULTA16.3x43.0%Strong· 75
Consumer Discretionary median23.7x6.2%54/100

Valuation vs. quality map

sector medianTSCODECKNVRAPTVLULUULTABBYP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Consumer Discretionary companies by sub-industry and size. Sector median is across all 48 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$55.03$96.31

vs. $76.01 today · expected CAGR -6%5%

Metric20262027202820292030
Revenue$42.94B$44.23B$45.56B$46.92B$48.33B
Net income$1.29B$1.33B$1.37B$1.41B$1.45B
EPS$6.11$6.30$6.48$6.68$6.88
Share price (low)$48.90$50.36$51.88$53.43$55.03
Share price (high)$85.57$88.14$90.78$93.51$96.31
CAGR (low–high)-36% / 13%-19% / 8%-12% / 6%-8% / 5%-6% / 5%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for BBY:

  • Strong return on equity (40.1%) shows capital is put to work well.
  • Healthy free-cash-flow yield (~13.3%) funds buybacks and dividends.
  • A conservative balance sheet (debt/equity 0.4x) lowers risk.
  • Pays a 5.0% dividend on top of any price gains.
  • Our model's overall read is Favorable (64/100).
Bear Case

The case against BBY:

  • Revenue growth is slow (1.0%), limiting the upside engine.
  • Thin net margins (2.7%) leave little room for error.
Key Risks
Research

Growth risk — sluggish revenue (1.0%) leaves little margin for execution missteps.

Margin risk — thin profitability (2.7%) is vulnerable to cost or pricing pressure.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen favourably: Best Buy is a large-cap consumer discretionary business growing at a mature pace, with modest profitability, and a sound balance sheet. It trades at 13.9x earnings, which our model scores Favorable (64/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.