Best Buy Co. Inc (BBY) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Best Buy Co. Inc stock $94.70, price $99.40, that is 4.7% below the price, quality 73 out of 100. Rating: fairly valued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 5, 2026.
How to read this chart
60‑month range $51.79 – $109.24 · fair‑value band $66.29 – $123.59 · the $99.40 price screens above the $94.70 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. As of Nov 5, 2026.
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Best Buy Co., Inc. offers technology products and solutions in the United States, Canada, and internationally.
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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.
Stock analysis
Best Buy Co. Inc (BBY) currently trades at $99.40, while our model-based Fair Value estimate is $94.70, so the stock looks roughly fairly valued today (gap 5.0%).
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Valuation
Bull case: the DCF Models group reads highest at a median of $101.41 per share, and 10 of the 26 models we run sit above the $99.40 price.
Bear case: the Earnings-Based group reads lowest at $26.66, and 16 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $66.29 (bear) to $123.59 (bull), the price of $99.40 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 73/100 (solid quality), in the Consumer Cyclical sector.
Weak Growth: Growth has flattened: the last year, three and five years all grew more slowly than the long-term average.
Best Buy Co. Inc 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.
Key figures
Market cap $21.1B Large · P/E ratio 16.5 · P/S ratio 0.50 · EPS (TTM) $6.02 · Dividend yield 3.8% · Net margin 3.0% · Return on equity 43.1% · Return on assets (EBIT) 12.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 56 out of 100 (medium confidence).
What moves the price
The share trades about 2% below its 52-week high and 83% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −12% fair-value upside, at −5%, BBY screens cheaper than that median.
Fair Value models
Bear$66.29Fair Value $94.70Bull$123.59
Price $99.40 · Downside -4.7%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 9 months old). Earnings retained since then ($1.68 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
SaleTodd G. HartmanGC, Chief Risk Officer5,339 shares at $64.02$341,803Mar 23, 2026
Plus 20 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Growth has flattened: the last year, three and five years all grew more slowly than the long-term average.
Revenue growth 1 year
+0.4%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−3.4%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−2.5%
Start year 2021 (pandemic). Over 10 years: +0.5% a year
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+15.9%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
−2.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year−5.9%
Dividend (yield on the price)3.8%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−5.9% vs 3.8%, slowing
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.5% → 4%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+6.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+1.9%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +3.8% a year for the price and −0.5% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (99 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Specialty Retail · 204 stocks
Beats the industry median on 8/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score73 · Top 25%
Fair Value upside−4.7% · Below median
Profitability
Return on equity (12 months)43.1% · Top 25%
Return on assets7.3% · Top 25%
Net margin (12 months)3.0% · Above median
Operating margin (12 months)3.9% · Below median
Growth and dividend
Revenue growth (quarter YoY)3.6% · Below median
Dividend yield (12 months)3.8% · Above median
Balance sheet
Debt / equity0.39× · Above median
Valuation Multiplesvs Specialty Retail median · lower = cheaper
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Is Best Buy Co. Inc (BBY) overvalued or undervalued?
As of Nov 5, 2026, our model estimates a fair value of $94.70 versus a price of $99.40, about 5% lower (fairly valued).
What is the fair value of BBY?
Our model-based fair value for Best Buy Co. Inc is $94.70 (as of Nov 5, 2026), built from audited fundamentals. The current price: $99.40.
What is the quality score of BBY?
Best Buy Co. Inc has a Quality Score of 73/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Best Buy Co. Inc (BBY)?
Our model-based price target is the fair value of $94.70 (as of Nov 5, 2026) from 26 valuation models. Cautious scenario $66.29, optimistic scenario $123.59. It is a calculation from audited fundamentals, not an analyst target.
What is the Best Buy Co. Inc stock forecast for 2026?
Our models put fair value at $94.70, about 5% lower versus a price of $99.40 (fairly valued). Cautious scenario $66.29, optimistic scenario $123.59. The calculation is refreshed regularly with new filings.
What is the revenue of Best Buy Co. Inc (BBY)?
Best Buy Co. Inc reported trailing-twelve-month revenue of about $42.2B (latest available figure, as of Nov 5, 2026).
Does Best Buy Co. Inc pay a dividend?
Best Buy Co. Inc currently shows a dividend yield of 3.84% relative to its recent price (as of Nov 5, 2026).
What growth is priced into Best Buy Co. Inc (BBY)?
For today's price to be fair in a discounted-cash-flow model, Best Buy Co. Inc would have to grow free cash flow by +6.2 % per year for five years (discount rate 9.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew -2.5 % per year. As of Nov 5, 2026.
What discount rate (WACC) does the fair value of BBY use?
Our models discount Best Buy Co. Inc at 9.9 %: a base by market capitalisation (large), damped by beta 1.28, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Best Buy Co. Inc that is +6.2 % per year a year over ten years, using the same discount rate (9.9 %) and the same formula as our fair value.
How much growth has Best Buy Co. Inc (BBY) delivered so far?
Over the past 5 years revenue at Best Buy Co. Inc grew -2.5 % a year. The price currently implies +6.2 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Best Buy Co. Inc (BBY) growing?
The median revenue growth in the sector is +4.6 % a year. That is the yardstick for the growth priced into Best Buy Co. Inc (+6.2 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Best Buy Co. Inc (BBY)?
The free-cash-flow yield on the price is 5.97 %: that much free cash flow Best Buy Co. Inc produces per unit of market value. When it exceeds the discount rate of our models (9.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Best Buy Co. Inc (BBY)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Best Buy Co. Inc it is $94.70 per share (as of Nov 5, 2026), against a price of $99.40. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Best Buy Co. Inc stock overvalued or undervalued in 2026?
As of Nov 5, 2026, BBY trades above its calculated fair value: price $99.40, fair value $94.70, a gap of about −5% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of BBY?
No. The price is what the market pays today ($99.40); the fair value is what the company's own numbers justify ($94.70). For Best Buy Co. Inc the two are $4.70 per share apart. That gap is exactly why we show both numbers side by side.
How much is Best Buy Co. Inc worth?
The market values Best Buy Co. Inc at about $21.1B (market capitalisation, as of Nov 5, 2026). Per share that is $99.40; our models calculate a fair value of $94.70 per share.
What do the bullish and bearish scenarios say about BBY?
Our models span a range for Best Buy Co. Inc: cautious scenario $66.29, base $94.70, optimistic $123.59 per share (as of Nov 5, 2026, price $99.40). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of BBY?
Best Buy Co. Inc trades at a price-to-earnings ratio of 16.5 (as of Nov 5, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $94.70 is built from several models across several years. Excluding one-off items of fiscal year 2026 it is 15.5 (reported for FY2026: 19.8). Median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings, FY2026 ex one-offs: 13.4. Other multiples: PEG 1.7, P/B 7.1, P/S 0.5, EV/EBITDA 7.8.
What is the PEG ratio of BBY?
The PEG ratio of Best Buy Co. Inc is 1.70 (P/E divided by earnings growth, as of Nov 5, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Best Buy Co. Inc (BBY)?
Balance-sheet figures for Best Buy Co. Inc (as of Nov 5, 2026): return on equity 43.1%, debt of 0.39 per unit of equity. They feed the Quality Score of 73/100, which measures business quality independently of the share price.
How far is BBY from its 52-week high?
Best Buy Co. Inc trades at $99.40, about 2% below its 52-week high of $101.36 and 83% above the low of $54.22 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $94.70 is for.
Which stocks are comparable to Best Buy Co. Inc?
From the same area (Consumer Cyclical) we also value Alimentation Couche-Tard Inc, Williams-Sonoma, Inc, Ulta Beauty, Inc, Casey's General Stores, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Best Buy Co. Inc stock attractive at the current price?
The data as of Nov 5, 2026: price $99.40, calculated fair value $94.70 (−5%), Quality Score 73/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of BBY calculated?
We run Best Buy Co. Inc through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $94.70, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Best Buy Co. Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Best Buy Co. Inc (BBY)?
The closing price on Nov 5, 2026 was $99.40. Our model-based fair value is $94.70, about 5% lower (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Best Buy Co. Inc right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. A fairly wide model range ($66.29 to $123.59) leaves room in how you read the outcome.
Where does the earnings growth of Best Buy Co. Inc (BBY) come from?
Earnings per share at Best Buy Co. Inc grew +4.8 % a year from 2015 to 2026. Broken into its drivers: revenue per share +6.0 %, EBIT margin +0.2 %, tax rate +0.3 %, residual (interest, one-offs) −1.5 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Best Buy Co. Inc
How large is the market capitalisation of Best Buy Co. Inc (BBY)?
The market capitalisation of Best Buy Co. Inc is $21.1B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Best Buy Co. Inc (BBY)?
The price-to-sales ratio of Best Buy Co. Inc is 0.50 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Best Buy Co. Inc (BBY)?
Earnings per share at Best Buy Co. Inc are $6.02 (price ÷ EPS = P/E 16.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Best Buy Co. Inc (BBY)?
The dividend yield of Best Buy Co. Inc is 3.8% (payout 49.6%, on adjusted earnings, reported 63.5%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Best Buy Co. Inc (BBY)?
The net margin of Best Buy Co. Inc is 3.0% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Best Buy Co. Inc (BBY)?
The return on equity (ROE) of Best Buy Co. Inc is 43.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Best Buy Co. Inc (BBY)?
On an EBIT basis the return on assets of Best Buy Co. Inc is 12.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Best Buy Co. Inc (BBY)?
The operating margin of Best Buy Co. Inc is 3.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Best Buy Co. Inc (BBY)?
Revenue at Best Buy Co. Inc is growing +3.6% versus a year earlier (3y avg −3.4%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Best Buy Co. Inc (BBY)?
Earnings per share at Best Buy Co. Inc are growing +70.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Best Buy Co. Inc (BBY) carry?
The net debt of Best Buy Co. Inc is $2.4B (fiscal year 2026, ≈ 1.9 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 5, 2026