BBY
Best Buy
$81.27
▲ 1.6%Updated Aug 7, 11:30 AM ET
BBY at a glance — five pillars scored 0–100 from real filed financials.
Overall: Favorable · 64/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 10.3% over the last 12 months
Market Cap
$16.44B
P/E
15.16x
Forward P/E (est.)
11.46x
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)
1.3%
Rating Score
64/100
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 $16.44B.
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.
Evidence of durable competitive advantage in the filed financials (10 years of history).
Some durable-advantage evidence, but not across the board — dig into which ingredient is weak and whether it's cyclical or structural.
22.4% average over the last 3 years
±0.7 pts around 22.7% across 10 years
grew in 6 of the last 9 year-over-year periods
positive in 10 of 10 years
26.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
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 $81.27, above its 50-day average ($67.50) and 200-day average ($69.88). 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 52 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 negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. BBY's is $2.51 (~3.1% 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 $69.71 (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 0.9× 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.
4Y CAGR
-5.3%
Revenue moved from $39.40B in 2017 to $41.69B in 2026, a 0.6% compound annual growth rate. The most recent year was roughly flat (1.0%) year over year. Slower, mature growth is common for established businesses.
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.
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.
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.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
Coverage is weak, the payout was cut recently, or it's being financed rather than earned — treat the current yield as fragile.
Dividend yield
5.0%
Per share (latest FY)
$3.80
Total paid (latest FY)
$801.00M
History on record
10 years
dividend uses 64% of free cash flow
75% of net income paid out
no current raise streak
payout was cut at least once in the last 10 years
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
15.16x
P/S
0.39x
P/B
5.01x
EV / EBITDA
—
BBY trades at 15.2x trailing earnings (about 11.5x on estimated forward earnings), 0.4x sales, and 5.0x book value. Reverse-engineering today's price implies the market expects roughly 1.3% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$86.37
Current price
$81.27
Starting FCF (latest 10-K)
$1.26B
Growth, years 1–5
1.0%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where BBY sits versus its Consumer Discretionary sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 85 Consumer Discretionary companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How BBY stacks up against its Consumer Discretionary peers — valuation, profitability, and growth versus the sector median.
In the Consumer Discretionary sector (158 S&P 500 companies), BBY ranks #12 of 158 by our overall rating. It trades at a discount versus the sector on earnings (15.2x P/E vs. 25.8x median) with a higher return on equity (40.1% vs. 26.2%) and slower revenue growth (1.0% vs. 6.8%).
P/E vs sector
15.2x
median 25.8x
ROE vs sector
40.1%
median 26.2%
Growth vs sector
1.0%
median 6.8%
Sector rank
#12
of 158 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Consumer Discretionary companies by sub-industry and size. Sector median is across all 158 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $81.27 today · expected CAGR -5% – 6%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $42.94B | $44.23B | $45.56B | $46.92B | $48.33B |
| Net income | $1.29B | $1.33B | $1.37B | $1.41B | $1.45B |
| EPS | $6.37 | $6.56 | $6.76 | $6.96 | $7.17 |
| Share price (low) | $57.32 | $59.04 | $60.81 | $62.64 | $64.52 |
| Share price (high) | $95.54 | $98.41 | $101.36 | $104.40 | $107.53 |
| CAGR (low–high) | -29% / 18% | -15% / 10% | -9% / 8% | -6% / 6% | -5% / 6% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
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).
The case against BBY:
- Revenue growth is slow (1.0%), limiting the upside engine.
- Thin net margins (2.7%) leave little room for error.
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.
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 15.2x earnings, which our model scores Favorable (64/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 29 Wall Street analysts covering BBY recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more cautious over the last three months (-6 pts of buy ratings).
Latest SEC Filings
BBY's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
BBY — frequently asked questions
Is BBY a good stock to buy?
We don't give buy or sell advice. Our model rates Best Buy Favorable (64/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is BBY's rating on The Stocks School?
Best Buy currently scores 64/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does BBY's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Best Buy's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for BBY calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this BBY analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell BBY. Always do your own research and consider a licensed professional.
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.