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

BBY
NYSEConsumer CyclicalSpecialty RetailCIK 0000764478investors.bestbuy.com/overview/default.aspxAbout BBY
Valuation grade ?S
Quant grade ?S
Last close · Oct 30, 202695.65−4.74 (−4.72%)
Model value · DCF · Perpetuity growth · 5y
106.63
Best Buy closed at $95.65 — undervalued by 10% vs model.
89.88the model's range130.34

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
60.02 – 1,014.66
Wall St. target
90.00 6% above
Below model, 1y
17 of 30 days

How it is valued

Valued asCyclical
Revenue declining (~-2% recent)Thin margins (2.6% net margin)Strong dividend yieldHighly cyclical earningsStrong FCF yield (6.3%)
What growth the price implies: the reverse DCF

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; how each model works is in the manual.