Is Best Buy Co Inc (BBY) undervalued or overvalued?

Our model estimates a fair value of about $168 against a price of $92.63 (Undervalued, +82% to fair value). It blends a 10-year DCF, sector multiples and earnings-power value and is a model estimate, not advice.

What is the X-Ray Score for BBY?

Best Buy Co Inc has an X-Ray Score of 59 out of 100, built from valuation, growth, profitability, financial health and dividend lenses ranked against Consumer Discretionary peers.

Where does the data for BBY come from?

Financial statements come from SEC EDGAR filings, prices from exchange price feeds, and industry betas and equity risk premium from Damodaran Online (NYU Stern).

Best Buy Co Inc (BBY)

Consumer Discretionary · Computer & Electronics Retail · US stock · S&P 500 component

$92.63 ▼ -1.54 (1.64%)

At close 16 Oct 2026 · USD · Volume 3,397,300

Historical data Research report SEC filings

Fair valueUndervalued

$168 +81.5% to fair value

$84fair band $118–$219$252

Day's range

$92.52 – $96.43

52-week range

$53.81 – $96.53

About Best Buy Co Inc

This company is a retailer of consumer electronics, appliances and related services in North America. It sells computers, phones, televisions, home appliances, gaming products and smart home devices through large stores and an online channel. The company earns money from product sales, and also from services such as installation, repair and membership programs. Sales depend on consumer demand and the timing of new product cycles.

The company reported twelve-month revenue of $42.2 billion, which declined at 3.4% a year across the last three years. It earned an operating margin of 4.1%, and it generated a return on invested capital of 60%. Net debt to EBITDA is -0.4 times, which means the company holds more cash than debt. The dividend yield is 4.1%. The site's X-Ray Score is 58 out of 100.

Written with AI from public information and the filing figures on this page, then checked automatically for unsupported numbers. It can contain mistakes: read the company's own filings below before relying on it.

Price chart

Historical data & CSV

52-wk range $53.81 – $96.53Volume 3,397,300Daily, split-adjusted

Vitals

Market cap$19.7B

52-week range$53.81 – $96.53

Volume (last day)3,397,300

P/E (TTM)15.4

EBIT / EV yield9.2%

Free-cash-flow yield9.0%

Dividend yield4.1%

Revenue (TTM)$42.2B

Net income (TTM)$1.3B

Operating margin4.1%

Return on capital59.6%

Debt incl. leases$1.2B

Cash & securities$2.3B

Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies like Apple). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.

Fair value estimate

$168model spread $161 – $177

Undervalued +81.5% to fair value

Equal blend of three models: peer multiples, a fundamentals-adjusted multiple (growth, ROIC and margin) and a 10-year DCF scaled to the market's average. Earnings-power value (no growth) is a floor and not part of the blend. Model uncertainty is Medium, so the safety margin is 30%.

Price $93

Undervalued < $118Fair $118 – $219Overvalued > $219

10-year DCF (market-scaled)

$167

Peer multiples

$144

Earnings power floor (not blended)

$67

Fundamentals-adjusted multiple

$193

Growth the price implies

4.8%/yr

A model estimate, not a price target or recommendation. Inputs: risk-free 5.09%, equity risk premium 4.23% (Damodaran). How it works.

What this means

Average business at a low price

Our models put fair value above today's price, but models can be wrong, so check the business first. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.

Before you invest · decision checklist

I understand how this company makes money Business quality is average or better ✓ 64 The price is not above fair value $168 fair value Debt looks manageable -0.4× EBITDA Revenue has been growing -3.4% a year Profits are backed by cash There are no red flags none raised I know what share of my savings this would be

Ticked boxes are filled in from our data; the rest are yours to answer.

The five-lens scan

Every score explained in one sentence, ranked against Consumer Discretionary peers. Open a lens to see the numbers behind it.

Valuation Strong

81/100

Cheap against its sector on earnings and cash flow.

See the numbers →

EBIT / EV yield9.2%

Free-cash-flow yield9.0%

Fair value vs price1.8×

Growth Weak

22/100

Growing slower than most of its sector.

See the numbers →

Revenue growth (3y)-3.4%

EPS growth (3y)-7.1%

Growth consistency40%

Profitability Fair

64/100

Returns on capital are typical for its sector.

See the numbers →

Return on invested capital59.6%

Operating margin4.1%

Gross profitability59.4%

Financial health Fair

65/100

Balance sheet is in typical shape for its sector.

See the numbers →

Piotroski F-Score7 / 9

Net debt / EBITDA-0.4×

Interest cover38.0×

Dividends Fair

53/100

Dividend is typical for its sector.

See the numbers →

Dividend yield4.1%

Dividends vs free cash flow46%

Dividend growth0.5%

Quarterly results: last 6 quarters

-0.9%

May '25

+1.6%

Aug '25

+2.4%

Nov '25

-1.0%

Jan '26

+1.9%

May '26

+3.6%

Aug '26

Revenue against the same quarter a year earlier. Latest quarter revenue $9.8B, diluted EPS $1.48.

Fundamentals checklist

● 8 Good · ● 4 Average · ● 4 Bad

Cash quality

Earnings backed by cashGood

Free-cash-flow yieldGood

Risk models

Altman Z''Average

Piotroski F-ScoreGood

Growth

EPS growth (3y)Bad

Free-cash-flow growth (3y)Average

Revenue growth (3y)Bad

Growth consistencyBad

Balance sheet

Current ratioAverage

Net debt / EBITDAGood

Interest coverAverage

Valuation

Fair value vs priceGood

EBIT / EV yieldGood

Profitability

Return on invested capitalGood

Operating marginBad

Gross profitabilityGood

Each check is graded against the company's sector, not a fixed number. Checklist score 57/100.

Financials

	FY22	FY23	FY24	FY25	FY26
Revenue	$51.8B	$46.3B	$43.5B	$41.5B	$41.7B
Operating income	$3.0B	$1.8B	$1.6B	$1.3B	$1.4B
Net income	$2.5B	$1.4B	$1.2B	$927M	$1.1B
Operating cash flow	$3.3B	$1.8B	$1.5B	$2.1B	$2.0B
Operating margin	5.9%	3.9%	3.6%	3.0%	3.3%
Free cash flow	$2.5B	$894M	$675M	$1.4B	$1.3B
Diluted EPS	$9.84	$6.29	$5.68	$4.28	$5.04

Fiscal years, from SEC filings.

Technical summary

Daily

Strongly bullish

12 bullish · 3 neutral · 1 bearish

Weekly

Strongly bullish

11 bullish · 1 neutral · 0 bearish

Monthly

Strongly bullish

7 bullish · 1 neutral · 0 bearish

Moving averages (daily)

SMA 10	88.31	Bullish
EMA 10	89.67	Bullish
SMA 20	89.30	Bullish
EMA 20	89.12	Bullish
SMA 50	87.50	Bullish
EMA 50	87.13	Bullish
SMA 100	82.96	Bullish
EMA 100	82.63	Bullish
SMA 200	72.42	Bullish
EMA 200	77.23	Bullish

Oscillators (daily)

RSI (14)	59.19	Neutral
MACD (12, 26)	0.63	Bullish
Momentum (12)	4.98	Bullish
Stochastic %K (14)	70.27	Neutral
Williams %R (14)	-29.73	Neutral
CCI (20)	126.2	Bearish

Pivot points (classic, last session)

87.38

89.95

91.29

Pivot

93.86

95.20

97.77

99.11

Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.

Dividends

Paid, last 12 months

3.83 USD

Yield on today's price

4.13%

Frequency

Quarterly

Next ex-dividend date

Not announced

Ex-dividend date	Amount per share
17 Sep 2026	0.9600
18 Jun 2026	0.9600
24 Mar 2026	0.9600
16 Dec 2025	0.9500
18 Sep 2025	0.9500
18 Jun 2025	0.9500
25 Mar 2025	0.9500
17 Dec 2024	0.9400
19 Sep 2024	0.9400
20 Jun 2024	0.9400
20 Mar 2024	0.9400
11 Dec 2023	0.9200