--- title: Best Buy (BBY) — intrinsic value and fair price canonical: https://sweetvaluelab.com/stocks/bby ticker: BBY as_of: 2026-10-17 sector: Consumer Cyclical industry: Specialty Retail --- # Best Buy (BBY) Best Buy (BBY) closed at $92.63 on Oct 16, 2026, overvalued by 20% vs its model value of $77.12 (from a five-year discounted cash flow). ## Key figures | Figure | Value | | --- | ---: | | Last close | $92.63 (Oct 16, 2026) | | Model value (from a five-year discounted cash flow) | $77.12 | | Price vs model | overvalued by 20% vs model | | Range of that model | $57.80 – $123.92 | | Market value | $19.4B | | P/E (fiscal 2026) | 18.4 | | Net margin (fiscal 2026) | 2.6% | | Free cash flow (fiscal 2026) | $1.3B | | Dividend yield (trailing twelve months) | 4.13% | | Beta | 1.28 | | Cost of capital (WACC) | 9.66% | | Business classification | Cyclical (Revenue declining (~-2% recent), Thin margins (2.6% net margin), Strong dividend yield, Highly cyclical earnings, Strong FCF yield (6.5%)) | ## Dividends | Figure | Value | | --- | ---: | | Trailing dividend yield | 4.13% | | Dividends per share, last 12 months | $3.83 | | Dividends / free cash flow (fiscal 2026) | 63.7% | | Raised | 21+ years in a row | | Growth over 5 years | 7.6% a year | | Latest payment | $0.96, ex-date Sep 17, 2026, paid Oct 8, 2026 | | Year of payments | Dividends per share | | --- | ---: | | To Sep 13, 2021 | $2.65 | | To Sep 19, 2022 | $3.34 | | To Sep 18, 2023 | $3.64 | | To Sep 19, 2024 | $3.74 | | To Sep 18, 2025 | $3.79 | | Trailing twelve months (to Sep 17, 2026) | $3.83 | ## Valuation models Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026. | Model | Role | Value per share | Low | High | | --- | --- | ---: | ---: | ---: | | DCF · Perpetuity growth · 5y | primary | $77.12 | $57.80 | $123.92 | | DCF · Perpetuity growth · 10y | cross check | $77.21 | $59.40 | $119.32 | | DCF · EBITDA exit · 5y | cross check | $135.62 | $98.05 | $179.80 | | DCF · EBITDA exit · 10y | cross check | $118.65 | $85.44 | $162.83 | | P/E · peers | cross check | $167.06 | $113.93 | $248.30 | | P/E · own history | cross check | $81.36 | $67.23 | $96.36 | | PEG | sanity check | $123.35 | $123.35 | $123.35 | | EV/EBITDA · peers | cross check | $203.68 | $147.91 | $361.19 | | EV/Revenue · peers | cross check | $1,047.01 | $609.63 | $2,339.38 | | Earnings power value | cross check | $65.23 | $56.82 | $76.74 | | Dividend discount | cross check | $71.97 | $51.99 | $107.67 | ## Insider activity (SEC Form 4) Past 90 days: 0 open-market buys ($0) and 4 open-market sales ($38.4M); 10b5-1 plan sales included. | Date | Insider | Relationship | Transaction | Shares | Value | | --- | --- | --- | --- | ---: | ---: | | Sep 23, 2026 | Scarlett Kathleen | SEVP, CHRO | Option/RSU exercise | 96,166 | $6.8M | | Sep 23, 2026 | Scarlett Kathleen | SEVP, CHRO | Open-market sell | 88,110 | $8.1M | | Sep 23, 2026 | Scarlett Kathleen | SEVP, CHRO | Open-market sell | 27,952 | $2.6M | | Sep 23, 2026 | Scarlett Kathleen | SEVP, CHRO | Option/RSU exercise | 96,166 | $6.8M | | Sep 20, 2026 | Scarlett Kathleen | SEVP, CHRO | Grant / award | 32,311 | $0 | ## Recent SEC filings | Filed | Form | What | Filing | | --- | --- | --- | --- | | Sep 25, 2026 | S-3ASR | Shelf registration (automatic) | https://www.sec.gov/Archives/edgar/data/764478/000114036126037691/ny20081988x1_s3asr.htm | | Sep 4, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/764478/000076447826000042/bby-20260801.htm | | Aug 27, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/764478/000076447826000037/bby-20260827.htm | | Aug 3, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/764478/000076447826000034/bby-20260801.htm | | Jun 22, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/764478/000076447826000027/bby-20260619.htm | ## Superinvestors holding it (latest 13F) | Manager | Quarter | Shares | Value | | --- | --- | ---: | ---: | | Mairs & Power | 2026-06-30 | 5,500 | $417,340 | 1 tracked managers in all. ## About 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 offering… --- Source: https://sweetvaluelab.com/stocks/bby (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.