Best Buy Co. Inc
Exchange: NYSESector: Consumer CyclicalIndustry: Specialty Retail
Best Buy is the world's largest specialty consumer electronics retailer. Our purpose is to enrich lives through technology, which we do by providing our customers a unique mix of advice, products and services in our stores, online, and in homes. Our expert associates advise customers on our curated assortment of the latest, name-brand technology, while our highly trained services teams help with designs, consultations, delivery, installation, tech support and repair. We are a leader in corporate responsibility and sustainability issues, including through the Best Buy Foundation's nationwide Best Buy Teen Tech Center® network and the significant role we play in the circular economy through repair, trade-in and recycling programs. We generated more than $41.5 billion of revenue in fiscal 2025, operate more than 1,000 retail stores in North America, and have more than 80,000 employees.
Did you know?
Generated $1.8 in free cash flow for every $1 of capital expenditure in FY26.
Current Price
$64.50
+0.30%GoodMoat Value
$447.26
593.4% undervaluedProfile
Valuation (TTM)
Market Cap$13.52B
P/E12.64
EV$15.81B
P/B4.56
Shares Out209.54M
P/Sales0.32
Revenue$41.69B
EV/EBITDA6.97
Best Buy Co. Inc (BBY) Stock Analysis
GoodMoat Analysis
Best Buy is a large electronics retailer with a strong financial profile, including a high ROE of 36.1% and a robust free cash flow yield of 9.9%. However, it shows minimal evidence of a durable competitive moat and faces declining revenue, making it unlikely to pass the initial quality gate for a moat-focused investor.
Read full analysis
Best Buy Co. Inc. is a major specialty retailer of consumer electronics, appliances, and related services. Applying the GoodMoat framework, the company's Moat Score is low, likely scoring 1-2 out of 14. It may demonstrate some scale privilege in retail footprint and brand recognition, but it lacks the structural advantages like high switching costs, network effects, or proprietary technology that define a durable moat. Its business is highly exposed to competition and consumer cyclicality. Financially, the company presents a mixed picture. Its Return on Equity of 36.1% is excellent, and its 9.9% Free Cash Flow Yield is attractive. However, these are offset by a 1.0% year-over-year revenue decline, a thin operating margin of 3.3%, and a debt-to-equity ratio of 1.39, which indicates a leveraged balance sheet. According to the Decision Framework, a stock must first pass the 'Moat & Quality Gate' (Moat Score ≥ 5 and predominantly strong quality indicators) to warrant further valuation analysis. Best Buy's low implied moat score and weak growth/metrics like profit margin suggest it would not proceed past this initial gate, despite trading at a seemingly low P/E of 11.8. The provided GoodMoat Target price appears to be an extreme outlier and is not reconcilable with the fundamental data presented, indicating a potential data error. For a value investor focused on durable competitive advantages, Best Buy does not meet the foundational criteria for deeper investigation. Analysis based on data as of 2024-05-15.
Market Cap$13.52B
Current Price$64.50
P/E Ratio12.64
Forward P/E—
PEG Ratio0.03
EPS$5.04
Book Value$14.15
P/B Ratio4.56
BBY Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -6.0% FCF growth (CAGR)
Cash vs Debt
Net Debt: 2.4B
Revenue
43.6B
FY20
47.3B
FY21
51.8B
FY22
46.3B
FY23
43.5B
FY24
41.5B
FY25
41.7B
FY26
Net Income
1.5B
FY20
1.8B
FY21
2.5B
FY22
1.4B
FY23
1.2B
FY24
927M
FY25
1.1B
FY26
BBY 52-Week Range
$53.16
$81.65
50-Day MA: $63.98200-Day MA: $69.16
Did you know?
Pays a 5.93% dividend yield.
Best Buy Co. Inc (BBY) Financial Summary
Best Buy Co. Inc (BBY) is a Consumer Cyclical company in the Specialty Retail industry, listed on NYSE. The stock currently trades at $64.50 with a market capitalization of $13.52B.
Key valuation metrics include a P/E ratio of 12.64, price-to-book ratio of 4.56, and EPS of $5.04. The company reports a profit margin of 2.6% and return on equity of 36.1%.
BBY Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $13.52B |
| P/E Ratio | 12.64 |
| EPS | $5.04 |
| P/B Ratio | 4.56 |
| P/S Ratio | 0.32 |
| EV/EBITDA | 6.97 |
| Dividend Yield | 5.93% |
| Profit Margin | 2.6% |
| Return on Equity | 36.1% |
| Debt/Equity | 1.39 |
BBY Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY20 | $43.64B | $1.54B |
| FY21 | $47.26B | $1.80B |
| FY22 | $51.76B | $2.45B |
| FY23 | $46.30B | $1.42B |
| FY24 | $43.45B | $1.24B |
| FY25 | $41.53B | $927.00M |
| FY26 | $41.69B | $1.07B |
Best Buy Co. Inc (BBY) Valuation
Based on GoodMoat's DCF model, Best Buy Co. Inc has a fair value estimate of $447.26. At the current price of $64.50, the stock appears 85.6% undervalued relative to our intrinsic value estimate.
BBY Quality Indicators
Best Buy Co. Inc maintains a profit margin of 2.6% and an operating margin of 3.3%. Return on equity stands at 36.1%. The current ratio is 1.11. Debt-to-equity ratio is 1.39.
About Best Buy Co. Inc
Best Buy is the world's largest specialty consumer electronics retailer. Our purpose is to enrich lives through technology, which we do by providing our customers a unique mix of advice, products and services in our stores, online, and in homes. Our expert associates advise customers on our curated assortment of the latest, name-brand technology, while our highly trained services teams help with designs, consultations, delivery, installation, tech support and repair. We are a leader in corporate responsibility and sustainability issues, including through the Best Buy Foundation's nationwide Best Buy Teen Tech Center® network and the significant role we play in the circular economy through repair, trade-in and recycling programs. We generated more than $41.5 billion of revenue in fiscal 2025, operate more than 1,000 retail stores in North America, and have more than 80,000 employees.
BBY Free Cash Flow
Best Buy Co. Inc generated $1.26B in trailing twelve-month free cash flow, representing an FCF yield of 9.31%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
BBY Shares Outstanding
Best Buy Co. Inc has 0.21 billion shares outstanding at a share price of $64.50, giving it a market capitalization of $13.52B.