Consumer Discretionary · Computer & Electronics Retail · US stock · price as of 16 Oct 2026
Key indicators
Price
$92.63
52-week range
$53.81 – $96.53
Market cap
$19.7B
P/E (trailing)
15.4×
EV / EBITDA
7.4×
Free-cash-flow yield
9.0%
Dividend yield
4.1%
Revenue (last 12 months)
$42.2B
Revenue growth (3y a year)
−3.4%
Operating margin
4.1%
Return on invested capital
59.6%
Net debt / EBITDA
-0.4×
Fair value
Blended fair value$168.08 range $161 – $177
Versus priceUndervalued+82% to fair value
Peer multiples
$143.61
Fundamentals-adjusted multiple
$193.39
10-year DCF (market-scaled)
$167.25
Earnings power value (floor, not blended)
$67.24
Model uncertainty
Medium
X-Ray Score
59/ 100 · High confidence · ahead of 81% of sector peers
Valuation81
Growth22
Profitability64
Financial health65
Dividends53
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
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%.
StocksXray gives Best Buy Co Inc an X-Ray Score of 59 out of 100 (high confidence), ahead of 81% of the S&P 500 stocks in its sector. Its strongest lens is valuation (81) and its weakest is growth (22).
Our fair value blend is $168.08 (range $160.87 to $177.07). At $92.63 the stock trades 45% below that blend, so the label is "Undervalued" with medium model uncertainty. Fair value is a range, not a price target.
XStocksXray
Best Buy Co Inc (BBY)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2022
FY2023
FY2024
FY2025
FY2026
Now
Price
$77.82
$70.95
$66.22
$78.38
$62.62
$92.63
Market cap
$19.4B
$16.0B
$14.5B
$17.0B
$13.3B
$19.7B
P/E
7.9×
11.3×
11.7×
18.3×
12.4×
15.4×
EV / revenue
0.3×
0.3×
0.3×
0.4×
0.3×
0.4×
EV / EBITDA
4.5×
5.6×
5.7×
7.8×
5.7×
7.4×
Price / free cash flow
7.7×
17.9×
21.4×
12.2×
10.6×
11.1×
Free-cash-flow yield
13.0%
5.6%
4.7%
8.2%
9.5%
9.0%
Price / book
6.4×
5.7×
4.7×
6.0×
4.5×
6.2×
Dividend yield
3.60%
4.96%
5.56%
4.80%
6.07%
4.13%
Fundamentals checklist ● 8 Good · ● 4 Average · ● 4 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−7.5%Good
Free-cash-flow yield9.0%Good
Risk models
Altman Z score2.0×Average
Piotroski F-Score7 of 9Good
Growth
EPS growth (3y)−7.1%Bad
Free-cash-flow growth (3y)12.1%Average
Revenue growth (3y)−3.4%Bad
Growth consistency40%Bad
Balance sheet
Current ratio1.1×Average
Net debt / EBITDA-0.4×Good
Interest cover38.0×Average
Valuation
Fair value vs price1.8×Good
EBIT / EV yield9.2%Good
Profitability
Return on invested capital59.6%Good
Operating margin4.1%Bad
Gross profitability59.4%Good
XStocksXray
Best Buy Co Inc (BBY)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY22
FY23
FY24
FY25
FY26
LTM
Revenue
51,761
46,298
43,452
41,528
41,691
42,201
Gross profit
11,640
9,912
9,603
9,385
9,373
9,570
Operating income
3,039
1,795
1,574
1,262
1,389
1,710
Net income
2,454
1,419
1,241
927
1,069
1,272
Diluted EPS ($)
9.84
6.29
5.68
4.28
5.04
6.00
Free cash flow
2,515
894
675
1,392
1,258
1,768
Gross margin
22.5%
21.4%
22.1%
22.6%
22.5%
22.7%
Operating margin
5.9%
3.9%
3.6%
3.0%
3.3%
4.1%
Net margin
4.7%
3.1%
2.9%
2.2%
2.6%
3.0%
Balance sheet
FY22
FY23
FY24
FY25
FY26
LTM
Total assets
17,504
15,803
14,967
14,782
14,670
16,107
Cash
2,936
1,874
1,447
1,578
1,738
2,255
Total debt
1,229
1,176
1,165
1,154
1,176
1,169
Equity
3,020
2,795
3,053
2,808
2,964
3,183
Dividend per share ($)
2.80
3.52
3.68
3.76
3.80
3.82
Revenue and net income US$ billions: navy revenue, teal net income
Margins blue gross, teal operating, brown net
Latest quarters
May 2025
Aug 2025
Nov 2025
Jan 2026
May 2026
Aug 2026
Revenue ($M)
8,767
9,438
9,672
13,814
8,936
9,779
Growth vs a year earlier
−0.9%
+1.6%
+2.4%
−1.0%
+1.9%
+3.6%
Net income ($M)
202
186
140
541
276
315
Diluted EPS ($)
0.95
0.87
0.66
–
1.31
1.48
XStocksXray
Best Buy Co Inc (BBY)
Peers in Computer & Electronics Retail
Company
X-Ray
BBY · Best Buy Co Inc
59
Market Compass outlook for Consumer Discretionary: Neutral (53/100). It blends regime history, macro sensitivity, momentum and valuation.
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.