EN DE

Best Buy Co (BBY) Fair Value & Analysis

Consumer Cyclical · US · Market cap $17.7B

BB Best Buy Co logo Best Buy Co BBY · US
Price$80.02
Fair Value$109.12
Upside+36.4%
Quality70/100
Watch Best Buy Co for free, get notified when fair value or trend changes. Watch for free
Weak Growth
Thin margins · 2.7% net margin
Low debt · generates free cash flow
4.67% dividend yield
Ranks above peers (10/15)
Moderate moat 56/100
Evidence: High Range $70.14 – $139.48 Share as image

Fair value as of: Jul 15, 2026

From 26 valuation models · updated 23 days ago

Fair value updated Jul 15, 2026, revised from $101.94 to $109.12 (+7.0%) since Jul 14, 2026. Share price +1.7% over the past month.

A solid business, screening 36% undervalued on our models.

What matters now

  • The rarer combination: high quality (70/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • A fairly wide model range ($70.14 to $139.48) leaves room in how you read the outcome.
Share this valuation: 𝕏 WhatsApp

Price vs Fair Value (5 years)

$110.39 $52.33 Fair Value $109.12 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 15, 2026.

How to read this chart

60‑month range $52.33 – $110.39 · fair‑value band $70.14 – $139.48 · the $80.02 price screens below the $109.12 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 15, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

Best Buy Co (BBY) currently trades at $80.02, while our model-based Fair Value estimate is $109.12, implying the stock looks roughly 36.4% undervalued today. We read business quality at 70/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Best Buy Co generated revenue of $41.9B at a net margin of 2.7%. Revenue grew 1.9% year over year. It earns a return on equity of 39.1%. Net debt stands at $2.4B. Fundamentals as of Jul 15, 2026

Our scenario range runs from $70.14 (bear case) to $139.48 (bull case); at $80.02, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 3% below its 52-week high and 45% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -26% fair-value upside, at 36%, BBY screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $69.89 $99.58 $141.11 80
Residual Income $29.78 $35.87 $136.64 76
Rev-Margin DCF $72.09 $112.66 $157.64 74
All 26 models by family
DCF Models
FCF DCF $68.35 $101.11 $149.42 38
Owner Earnings $65.12 $96.26 $142.19 31
5Y Revenue Exit $72.09 $112.42 $163.05 39
5Y EBITDA Exit $93.95 $152.30 $219.07 41
5Y P/E Exit $69.32 $107.37 $146.15 38
10Y Revenue Exit $67.86 $104.00 $150.72 36
10Y EBITDA Exit $83.90 $131.32 $192.50 37
10Y P/E Exit $68.35 $100.54 $138.12 35
Earnings-Based
Graham-Dodd $34.49 $94.03 $123.29 54
Lynch FV $18.57 $26.53 $34.48 50
PEG = 1.0 $18.57 $26.53 $34.48 46
EPV $66.66 $77.31 $86.64 59
Dividend Discount
Gordon GGM $34.89 $72.55 $115.10 70
DDM Multi-Stage $34.89 $54.59 $75.50 61
Multiples
P/E Multiple $76.08 $101.44 $126.80 63
P/S Multiple $64.67 $86.22 $107.78 58
P/B Multiple $31.64 $42.19 $52.74 55
EV/EBIT $114.81 $152.17 $189.54 53
EV/EBITDA $122.11 $161.91 $201.71 54
EV/Revenue $78.28 $110.66 $143.04 43
Asset-Based
NCAV (Graham) $7.03 $9.42 $14.06 50
Growth DCF
Growth DCF $69.89 $99.58 $141.11 80
Rev-Margin DCF $72.09 $112.66 $157.64 74
Economic Profit
Residual Income $29.78 $35.87 $136.64 76
ROIC Compounder $68.79 $82.34 $95.97 72
Growth Earnings
Growth-Adj P/E $60.47 $86.39 $112.31 68

Widest divergence: DCF Models ($104.00) versus Asset-Based ($9.42). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $41.9B
Revenue growth (YoY) +1.9%
Net margin 2.7%
Return on equity 39.1%
Free cash flow $1.3B FY2026
P/E ratio 13.1
More key figures
Operating margin 4.0%
EPS (TTM) $5.40
Dividend yield 5.3%
EPS growth (YoY) +37.9%
Net debt $2.4B FY2026

Figures from reported company fundamentals · as of Jul 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 70/100

Of which business quality 70 · Market factors (momentum, volatility) 68

Profitability 75
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 48
Earnings quality: real cash, not paper profit
Fin. Strength 68
Balance sheet, leverage, solvency risk
Investment 97
Disciplined investing over empire-building
Low Volatility 44
Calm price path (market factor)
Momentum 78
Price trend over the last 3–12 months (market factor)
52W Momentum 77
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Best Buy Co., Inc. offers technology products and solutions in the United States, Canada, and internationally. The company provides computing and mobile phone products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer …

Full company description

Best Buy Co., Inc. offers technology products and solutions in the United States, Canada, and internationally. The company provides computing and mobile phone products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer electronics consisting of digital imaging, health and fitness products, portable audio comprising headphones and portable speakers, and smart home products, as well as home theaters that includes home theater accessories, soundbars, and televisions. It also offers appliances, such as dishwashers, laundry, ovens, refrigerators, blenders, coffee makers, vacuums, and personal care; entertainment products consisting of drones, peripherals, gaming, toys, and virtual reality, as well as hardware and software, and augmented reality glasses and other software products; and other products, such as baby, food and beverage, luggage, and outdoor living products. In addition, the company provides delivery, installation, marketplace commissions, memberships, repair, set-up, technical support, health-related, and warranty-related services. It offers its products through stores and websites under the Best Buy, Best Buy Ads, Best Buy Business, Best Buy Essentials, Best Buy Health, Best Buy Marketplace, Geek Squad, Imagine That, Insignia, Lively, Jitterbug, My Best Buy, My Best Buy Memberships, Pacific Kitchen, Home, TechLiquidators, and Yardbird brand names, as well as domain names comprising bestbuy.com, lively.com, techliquidators.com, yardbird.com, bestbuy.ca, and techliquidators.ca. The company was formerly known as Sound of Music, Inc. Best Buy Co., Inc. was incorporated in 1966 and is headquartered in Richfield, Minnesota.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Best Buy Co reported revenue of $41.7B in FY2026 versus $51.8B in FY2022, a compound −5.3%/yr. Reported net income was $1.1B in FY2026, compounding −18.8%/yr from FY2022.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
$41.7B
Latest YoY
+0.4%
Avg. growth/yr (3Y)
−3.4%
Avg. growth/yr (5Y)
−2.5%
Avg. growth/yr (40Y)
+15.9%
Revenue −5.3%/yr
FY22 $51.8B
FY23 $46.3B
FY24 $43.5B
FY25 $41.5B
FY26 $41.7B
Net income −18.8%/yr
FY22 $2.5B
FY23 $1.4B
FY24 $1.2B
FY25 $927M
FY26 $1.1B

Watch BBY: get an alert when its fair value changes →

Share or link this analysis
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

Cite: Fair Value Calculator (2026). "Best Buy Co Fair Value". https://www.fairvalue-calculator.com/stock/BBY

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Specialty Retail · 221 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 70 · Top 25%
Fair Value upside +36% · Above median
Return on equity (TTM) 39% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 3% · Above median
Operating margin (TTM) 4% · Above median
Revenue growth 2% · Below median
Dividend yield (TTM) 4.7% · Top 25%
Debt / equity 0.39× · Higher than median

Valuation Multiples vs Specialty Retail median · lower = cheaper

P/E (TTM) 15.6× · Cheaper than median
P/B 5.97× · Pricier than 75% of peers
P/S (TTM) 0.42× · Cheaper than median
P/FCF 14.1× · Pricier than 75% of peers
EV/EBITDA 6.5× · Cheaper than median
PEG 1.56× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 82 · sector 33
FUTURE 10 · sector 24
PAST 100 · sector 27
HEALTH 80 · sector 94
DIVIDEND 93 · sector 51

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Specialty Retail stocks, each showing price versus our Fair Value estimate (as of Jul 15, 2026).

Stock Price Fair Value vs Fair Value
Casey's General Stores, Inc CASY $827.04 $405.44 -51%
Williams-Sonoma, Inc WSM $222.84 $164.16 -26%
Ulta Beauty, Inc ULTA $479.57 $488.39 +2%
DICK'S Sporting Goods, Inc DKS $208.89 $181.10 -13%
China Tourism Group 601888 ¥52.90 ¥40.40 -24%
Tractor Supply Company TSCO $31.01 $35.52 +15%
Murphy USA Inc MUSA $618.57 $423.35 -32%
Five Below, Inc FIVE $197.71 $117.29 -41%
Taiwan Mobile Co 3045 110.50 TWD 80.98 TWD -27%
GameStop Corp GME $21.68 $15.31 -29%

Compare Best Buy Co with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Consumer Cyclical stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Frequently asked questions

Is Best Buy Co (BBY) overvalued or undervalued?
As of Jul 15, 2026, our model estimates a fair value of $109.12 versus a price of $80.02, about +36% (undervalued).
What is the fair value of BBY?
Our model-based fair value for Best Buy Co is $109.12 (as of Jul 15, 2026), built from audited fundamentals. The current price is $80.02.
What is the quality score of BBY?
Best Buy Co has a Quality Score of 70/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Best Buy Co (BBY)?
Best Buy Co reported trailing-twelve-month revenue of about $41.9B (latest available figure, as of Jul 15, 2026).
What is the net profit margin of BBY?
The net profit margin of Best Buy Co is about 2.7%, meaning it keeps roughly 2.7% of revenue as net income. Based on the latest reported figures.
Does Best Buy Co pay a dividend?
Best Buy Co currently shows a dividend yield of about 5.31% relative to its recent price (as of Jul 15, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

14 days Pro free · no card

Track Best Buy Co and try Pro for 14 days

One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.

Zero risk: nothing is ever charged. After 14 days you decide whether to stay.