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Best Buy Co., Inc. — Intrinsic Value & Fair Price

BBY
NYSEConsumer CyclicalSpecialty RetailCIK 0000764478investors.bestbuy.com/overview/default.aspxAbout BBY
Last close · Oct 16, 202692.63−1.54 (−1.64%)
Market cap$19.4B
Model value · DCF · Perpetuity growth · 5y
77.12
Best Buy closed at $92.63 — overvalued by 20% vs model.
57.80the model's range123.92

DCF · Perpetuity growth · 5y leads for a cyclical company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
65.23 – 1,047.01
Wall St. target
90.00 3% above
Above model, 1y
5 of 20 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
4.13%
Past 2 years
low 3.62%high 6.86%
Dividends per share, a year at a time
$2.65Sep ’21$3.34Sep ’22$3.64Sep ’23$3.74Sep ’24$3.79Sep ’25$3.83TTM
Dividends / free cash flow, FY2026
63.7%
Raised
21+ years in a row
Growth, 5 yrs
7.6% a year
Last change
+1.1% · Mar 2026
Every payment, with ex-dates · latest $0.96, paid Oct 8, 2026

Research on BBY

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How it is valued

Valued asCyclical
Revenue declining (~-2% recent)Thin margins (2.6% net margin)Strong dividend yieldHighly cyclical earningsStrong FCF yield (6.5%)
What growth the price implies: the reverse DCF

Key figures

FY2026 · chosen for cyclical companies
P/E
18.4×
EV / EBITDA
8.3×
FCF yield
6.4%
Dividend yield, TTM
4.13%
Beta
1.28
Cost of capital (WACC)
9.66%
Full financials

Analyst actions

third-party, quoted
09-08DA Davidson · “Neutral” from “Buy”downgrade
08-28UBS · target90.00
08-28Morgan Stanley · target90.00
08-28D.A. Davidson · target95.00
Ratings, targets and estimates

Comparable companies

by business, not by industry label
1 more company lists BBY as a comparable

The weekly

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About Best Buy

Best Buy Co., Inc. operates as a prominent technology retailer across the United States and Canada. Its business structure is segmented into Domestic and International operations. The company's extensive product selection includes a wide array of computing devices such as desktops, notebooks, and associated peripherals, alongside mobile phones (which generate commissions from network carriers), networking equipment, and tablets (including e-readers). Customers can also find smartwatches and various consumer electronics, encompassing digital imaging devices, health and fitness gadgets, home theater systems, portable audio solutions (like headphones and speakers), and smart home products. Beyond electronics, Best Buy also supplies household appliances such as dishwashers, laundry machines, ovens, refrigerators, blenders, coffee makers, and vacuum cleaners. For entertainment, their offerings range from drones, movies, music, and toys to gaming hardware and software, including virtual reality products. Additionally, the company stocks miscellaneous items like baby products, food and beverages, luggage, outdoor living essentials, and sporting goods. In terms of services, Best Buy provides consultation, delivery, design assistance, health-related programs, installation, membership benefits, repair work, product setup, technical support, and warranty services. Products are distributed through both physical stores and online platforms, operating under various brand names including Best Buy, Best Buy Ads, Best Buy Business, Best Buy Health, CST, Current Health, Geek Squad, Lively, Magnolia, Best Buy Mobile, Pacific Kitchen, Home, and Yardbird. Their primary online presence is via bestbuy.com, currenthealth.com, lively.com, yardbird.com, and bestbuy.ca. As of January 30, 2022, the company maintained a network of 1,144 retail locations. Originally established in 1966 as Sound of Music, Inc., the corporation is headquartered in Richfield, Minnesota.

CEO
Corie Sue Barry
Headquarters
Richfield, MN
Employees
82,000
IPO
1985-04-18
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.