BEST BUY CO INC (BBY) Fundamental Analysis & Valuation

NYSE:BBY • US0865161014

67.49 USD
+1.54 (+2.34%)
Last: Mar 4, 2026, 03:31 PM
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This BBY fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

BBY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 123 industry peers in the Specialty Retail industry. Both the profitability and the financial health of BBY get a neutral evaluation. Nothing too spectacular is happening here. BBY is cheap, but on the other hand it scores bad on growth. Finally BBY also has an excellent dividend rating. This makes BBY very considerable for value and dividend investing!


Dividend Valuation Growth Profitability Health

6

1. BBY Profitability Analysis

1.1 Basic Checks

  • BBY had positive earnings in the past year.
  • In the past year BBY had a positive cash flow from operations.
  • Of the past 5 years BBY 4 years were profitable.
  • Of the past 5 years BBY 4 years had a positive operating cash flow.
BBY Yearly Net Income VS EBIT VS OCF VS FCFBBY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

1.2 Ratios

  • BBY's Return On Assets of 3.84% is fine compared to the rest of the industry. BBY outperforms 65.85% of its industry peers.
  • With an excellent Return On Equity value of 24.31%, BBY belongs to the best of the industry, outperforming 83.74% of the companies in the same industry.
  • BBY's Return On Invested Capital of 19.52% is amongst the best of the industry. BBY outperforms 87.80% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for BBY is significantly above the industry average of 13.61%.
  • The 3 year average ROIC (19.35%) for BBY is below the current ROIC(19.52%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.84%
ROE 24.31%
ROIC 19.52%
ROA(3y)7.85%
ROA(5y)9.4%
ROE(3y)41.48%
ROE(5y)48.98%
ROIC(3y)19.35%
ROIC(5y)22.54%
BBY Yearly ROA, ROE, ROICBBY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

1.3 Margins

  • Looking at the Profit Margin, with a value of 1.54%, BBY is in line with its industry, outperforming 57.72% of the companies in the same industry.
  • In the last couple of years the Profit Margin of BBY has declined.
  • BBY has a better Operating Margin (4.22%) than 62.60% of its industry peers.
  • In the last couple of years the Operating Margin of BBY has declined.
  • Looking at the Gross Margin, with a value of 22.50%, BBY is doing worse than 75.61% of the companies in the same industry.
  • In the last couple of years the Gross Margin of BBY has remained more or less at the same level.
Industry RankSector Rank
OM 4.22%
PM (TTM) 1.54%
GM 22.5%
OM growth 3Y-10.46%
OM growth 5Y-2.33%
PM growth 3Y-22.2%
PM growth 5Y-8.77%
GM growth 3Y0.15%
GM growth 5Y-0.37%
BBY Yearly Profit, Operating, Gross MarginsBBY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. BBY Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BBY is creating value.
  • BBY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
BBY Yearly Shares OutstandingBBY Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
BBY Yearly Total Debt VS Total AssetsBBY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • An Altman-Z score of 3.65 indicates that BBY is not in any danger for bankruptcy at the moment.
  • BBY's Altman-Z score of 3.65 is fine compared to the rest of the industry. BBY outperforms 79.67% of its industry peers.
  • The Debt to FCF ratio of BBY is 0.77, which is an excellent value as it means it would take BBY, only 0.77 years of fcf income to pay off all of its debts.
  • BBY has a better Debt to FCF ratio (0.77) than 82.11% of its industry peers.
  • A Debt/Equity ratio of 0.44 indicates that BBY is not too dependend on debt financing.
  • BBY has a Debt to Equity ratio (0.44) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.44
Debt/FCF 0.77
Altman-Z 3.65
ROIC/WACC2.06
WACC9.46%
BBY Yearly LT Debt VS Equity VS FCFBBY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.3 Liquidity

  • BBY has a Current Ratio of 1.05. This is a normal value and indicates that BBY is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Current ratio value of 1.05, BBY is not doing good in the industry: 70.73% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.26 indicates that BBY may have some problems paying its short term obligations.
  • BBY has a worse Quick ratio (0.26) than 80.49% of its industry peers.
Industry RankSector Rank
Current Ratio 1.05
Quick Ratio 0.26
BBY Yearly Current Assets VS Current LiabilitesBBY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. BBY Growth Analysis

3.1 Past

  • BBY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.94%.
  • BBY shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.05% yearly.
EPS 1Y (TTM)0.94%
EPS 3Y-3.2%
EPS 5Y-4.05%
EPS Q2Q%1.16%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.96%

3.2 Future

  • Based on estimates for the next years, BBY will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.97% on average per year.
  • BBY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.98% yearly.
EPS Next Y4.5%
EPS Next 2Y6.26%
EPS Next 3Y11.82%
EPS Next 5Y10.97%
Revenue Next Year1.13%
Revenue Next 2Y1.4%
Revenue Next 3Y1.89%
Revenue Next 5Y1.98%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
BBY Yearly Revenue VS EstimatesBBY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B 40B 50B
BBY Yearly EPS VS EstimatesBBY Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2 4 6 8 10

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7

4. BBY Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 10.48, which indicates a very decent valuation of BBY.
  • Based on the Price/Earnings ratio, BBY is valued cheaply inside the industry as 86.99% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 26.83. BBY is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 10.03 indicates a reasonable valuation of BBY.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of BBY indicates a rather cheap valuation: BBY is cheaper than 86.99% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 24.95. BBY is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 10.48
Fwd PE 10.03
BBY Price Earnings VS Forward Price EarningsBBY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, BBY is valued cheaper than 88.62% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, BBY is valued cheaper than 84.55% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.34
EV/EBITDA 5.39
BBY Per share dataBBY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The decent profitability rating of BBY may justify a higher PE ratio.
PEG (NY)2.33
PEG (5Y)N/A
EPS Next 2Y6.26%
EPS Next 3Y11.82%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. BBY Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 6.17%, BBY is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 2.33, BBY pays a better dividend. On top of this BBY pays more dividend than 93.50% of the companies listed in the same industry.
  • BBY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 6.17%

5.2 History

  • The dividend of BBY is nicely growing with an annual growth rate of 13.38%!
  • BBY has been paying a dividend for at least 10 years, so it has a reliable track record.
  • BBY has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)13.38%
Div Incr Years14
Div Non Decr Years14
BBY Yearly Dividends per shareBBY Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

  • 124.34% of the earnings are spent on dividend by BBY. This is not a sustainable payout ratio.
  • The dividend of BBY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP124.34%
EPS Next 2Y6.26%
EPS Next 3Y11.82%
BBY Yearly Income VS Free CF VS DividendBBY Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B
BBY Dividend Payout.BBY Dividend Payout, showing the Payout Ratio.BBY Dividend Payout.PayoutRetained Earnings

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BBY Fundamentals: All Metrics, Ratios and Statistics

BEST BUY CO INC

NYSE:BBY (3/4/2026, 3:31:04 PM)

67.49

+1.54 (+2.34%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)03-03
Earnings (Next)N/A
Inst Owners90.4%
Inst Owner Change11.04%
Ins Owners0.33%
Ins Owner Change0.33%
Market Cap14.14B
Revenue(TTM)N/A
Net Income(TTM)645.00M
Analysts67.74
Price Target80.97 (19.97%)
Short Float %11.28%
Short Ratio4.85
Dividend
Industry RankSector Rank
Dividend Yield 6.17%
Yearly Dividend3.78
Dividend Growth(5Y)13.38%
DP124.34%
Div Incr Years14
Div Non Decr Years14
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.27%
Min EPS beat(2)4.59%
Max EPS beat(2)5.96%
EPS beat(4)4
Avg EPS beat(4)5.35%
Min EPS beat(4)4.41%
Max EPS beat(4)6.45%
EPS beat(8)7
Avg EPS beat(8)6.21%
EPS beat(12)11
Avg EPS beat(12)8.03%
EPS beat(16)13
Avg EPS beat(16)9.05%
Revenue beat(2)1
Avg Revenue beat(2)0.52%
Min Revenue beat(2)-0.14%
Max Revenue beat(2)1.18%
Revenue beat(4)2
Avg Revenue beat(4)0.08%
Min Revenue beat(4)-1.51%
Max Revenue beat(4)1.18%
Revenue beat(8)2
Avg Revenue beat(8)-0.72%
Revenue beat(12)2
Avg Revenue beat(12)-0.91%
Revenue beat(16)4
Avg Revenue beat(16)-0.65%
PT rev (1m)-4.01%
PT rev (3m)-2.82%
EPS NQ rev (1m)-0.92%
EPS NQ rev (3m)-2.43%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)1.07%
Revenue NQ rev (1m)-0.51%
Revenue NQ rev (3m)-0.91%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.06%
Valuation
Industry RankSector Rank
PE 10.48
Fwd PE 10.03
P/S 0.34
P/FCF 9.34
P/OCF 6.37
P/B 5.33
P/tB 7.76
EV/EBITDA 5.39
EPS(TTM)6.44
EY9.54%
EPS(NY)6.73
Fwd EY9.97%
FCF(TTM)7.23
FCFY10.71%
OCF(TTM)10.6
OCFY15.71%
SpS199.6
BVpS12.66
TBVpS8.7
PEG (NY)2.33
PEG (5Y)N/A
Graham Number42.83
Profitability
Industry RankSector Rank
ROA 3.84%
ROE 24.31%
ROCE 26.42%
ROIC 19.52%
ROICexc 22.65%
ROICexgc 26.48%
OM 4.22%
PM (TTM) 1.54%
GM 22.5%
FCFM 3.62%
ROA(3y)7.85%
ROA(5y)9.4%
ROE(3y)41.48%
ROE(5y)48.98%
ROIC(3y)19.35%
ROIC(5y)22.54%
ROICexc(3y)25.47%
ROICexc(5y)38.8%
ROICexgc(3y)34.77%
ROICexgc(5y)61.16%
ROCE(3y)26.19%
ROCE(5y)30.58%
ROICexgc growth 3Y-32.43%
ROICexgc growth 5Y-4.41%
ROICexc growth 3Y-24.39%
ROICexc growth 5Y-2.87%
OM growth 3Y-10.46%
OM growth 5Y-2.33%
PM growth 3Y-22.2%
PM growth 5Y-8.77%
GM growth 3Y0.15%
GM growth 5Y-0.37%
F-Score7
Asset Turnover2.49
Health
Industry RankSector Rank
Debt/Equity 0.44
Debt/FCF 0.77
Debt/EBITDA 0.44
Cap/Depr 83.77%
Cap/Sales 1.69%
Interest Coverage 250
Cash Conversion 85.19%
Profit Quality 234.73%
Current Ratio 1.05
Quick Ratio 0.26
Altman-Z 3.65
F-Score7
WACC9.46%
ROIC/WACC2.06
Cap/Depr(3y)89.65%
Cap/Depr(5y)87.75%
Cap/Sales(3y)1.85%
Cap/Sales(5y)1.69%
Profit Quality(3y)89.19%
Profit Quality(5y)120.88%
High Growth Momentum
Growth
EPS 1Y (TTM)0.94%
EPS 3Y-3.2%
EPS 5Y-4.05%
EPS Q2Q%1.16%
EPS Next Y4.5%
EPS Next 2Y6.26%
EPS Next 3Y11.82%
EPS Next 5Y10.97%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.96%
Revenue Next Year1.13%
Revenue Next 2Y1.4%
Revenue Next 3Y1.89%
Revenue Next 5Y1.98%
EBIT growth 1Y-0.9%
EBIT growth 3Y-16.8%
EBIT growth 5Y-3.29%
EBIT Next Year52.23%
EBIT Next 3Y17.43%
EBIT Next 5Y13.45%
FCF growth 1Y10.03%
FCF growth 3Y-17.9%
FCF growth 5Y-5.24%
OCF growth 1Y-0.05%
OCF growth 3Y-13.59%
OCF growth 5Y-3.94%

BEST BUY CO INC / BBY FAQ

What is the ChartMill fundamental rating of BEST BUY CO INC (BBY) stock?

ChartMill assigns a fundamental rating of 6 / 10 to BBY.


What is the valuation status of BEST BUY CO INC (BBY) stock?

ChartMill assigns a valuation rating of 7 / 10 to BEST BUY CO INC (BBY). This can be considered as Undervalued.


How profitable is BEST BUY CO INC (BBY) stock?

BEST BUY CO INC (BBY) has a profitability rating of 7 / 10.


What is the expected EPS growth for BEST BUY CO INC (BBY) stock?

The Earnings per Share (EPS) of BEST BUY CO INC (BBY) is expected to grow by 4.5% in the next year.


How sustainable is the dividend of BEST BUY CO INC (BBY) stock?

The dividend rating of BEST BUY CO INC (BBY) is 7 / 10 and the dividend payout ratio is 124.34%.