A Business at a Glance
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BEST BUY CO INC
BBY
$18.1B
Mkt Cap
$85.43
+1.18%
BEST BUY CO INC (BBY) has a current P/E ratio of 13.4, compared to its historical median P/E of 12.0. The stock is currently considered Fair based on its historical valuation range.
BEST BUY CO INC (BBY) has a 5-year average return on invested capital (ROIC) of 75.4%. This indicates strong capital allocation and a potential competitive advantage.
BEST BUY CO INC (BBY) has a market capitalization of $18.0B. It is classified as a large-cap stock.
Yes, BEST BUY CO INC (BBY) pays a dividend with a trailing twelve-month yield of 4.45%. The company also returns capital through share buybacks, with a buyback yield of 0.96%.
Based on historical P/E analysis, BEST BUY CO INC (BBY) appears fair. The current P/E of 13.4 is 12% above its historical median of 12.0. The estimated fair value CAGR (P/E method) is -2.4%.
BEST BUY CO INC (BBY) operates in the Retail-Radio, Tv & Consumer Electronics Stores industry, within the Consumer Cyclical sector.
BEST BUY CO INC (BBY) reported annual revenue of $41.7 billion in its most recent fiscal year, based on SEC EDGAR filings.
Best Buy is a technology retailer operating an omnichannel platform across the U.S. and Canada through which customers shop online, visit physical stores, or receive in-home services. The company operates two reportable segments—Domestic (U.S. operations including Best Buy Health) and International (Canada)—with a portfolio spanning six revenue categories: Computing and Mobile Phones, Consumer Electronics, Appliances, Entertainment, Services, and Other products. Best Buy generates revenue through product sales, service offerings (delivery, installation, repair, technical support, memberships, and warranty services), and emerging profit streams including Best Buy Ads (a retail media network) and Best Buy Marketplace (a third-party seller platform). The business model combines owned-brand merchandise (including exclusive brands like Insignia, Rocketfish, and Lively) with vendor partnerships; approximately 80% of merchandise is sourced from the company's 20 largest suppliers, with Apple, Samsung, HP, Sony, and LG representing roughly 55% of total purchases. Distribution leverages 1,117 stores as fulfillment hubs, enabling ship-from-store and curbside pickup alongside direct-to-consumer delivery. Competitive advantages include integrated omnichannel capabilities, knowledgeable in-store labor (including Geek Squad services), vendor partnerships and exclusive product experiences, curated assortment across price points, and supply chain scale. The company serves consumers across all demographics and price sensitivities, with particular strength in technology enthusiasts and value-conscious shoppers attracted to promotional events. Best Buy employs approximately 85,000 people and operates in a seasonal business with significant revenue concentration in the fourth quarter holiday period.
【Emerging profit streams scaling】 Management expects fiscal 2027 to benefit from continued momentum in Best Buy Ads and Marketplace, with advertising collections projected to grow approximately 10% and U.S. Marketplace GMV expected to reach at least $1.2 billion, both contributing positively to gross profit rates. The company plans its first domestic store growth in over a decade, opening six new stores while closing only two, reflecting confidence in market demand and the success of smaller store formats tested in prior periods. Computing category growth is anticipated to be driven by Windows 10 end-of-support replacement cycles and AI-related innovation, while home theater is expected to benefit from the exclusive national retail launch of RGB television technology mid-year and expanded in-store experiences. Management is investing in digital capabilities including AI-powered search, personalization, and app engagement, while maintaining labor as a flat percentage of revenue and expecting vendor-provided labor hours to grow again. The company expects gross profit rate improvement of approximately 30 basis points from ads and marketplace growth, though product margin rates face pressure from higher input costs partially offset by assortment strategy and promotional discipline.
| Metric | Target | Period |
|---|---|---|
| Revenue | $41.2 billion–$42.1 billion | FY2027 |
| Comparable sales growth | -1% to +1% | FY2027 |
| Best Buy Ads collections growth | approximately 10% | FY2027 |
| U.S. Marketplace GMV | at least $1.2 billion | FY2027 |
| Gross profit rate improvement | approximately 30 basis points | FY2027 |
| Share repurchases | approximately $300 million | FY2027 |
| Q1 FY2027 comparable sales growth | approximately 1% | Q1 FY2027 |
| Q2 FY2027 comparable sales growth | approximately 1% | Q2 FY2027 |
Revenue (FY2027): “Revenue in the range of $41.2 billion-$42.1 billion.”
Comparable sales growth (FY2027): “For the year, we are guiding comparable sales growth in the range of -1% to +1%.”
Best Buy Ads collections growth (FY2027): “As we mentioned last quarter, we expect ad collections to grow 10% to nearly $1 billion.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2027 Earnings Call, Q3 FY2027 Earnings Call, Q2 FY2027 Earnings Call, Q1 FY2027 Earnings Call
| Metric | TTM | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 41.9B | 41.7B | 41.5B | 43.5B | 46.3B | 51.8B |
| Net Income | 1.1B | 1.1B | 927M | 1.2B | 1.4B | 2.5B |
| EPS | $5.45 | $5.04 | $4.28 | $5.68 | $6.29 | $9.84 |
| Free Cash Flow | 1.6B | 1.3B | 1.4B | 675M | 894M | 2.5B |
| ROIC | 45.0% | 42.1% | 32.4% | 47.1% | 67.9% | 187.6% |
| Gross Margin | 22.5% | 22.5% | 22.6% | 22.1% | 21.4% | 22.5% |
| Debt/Equity | 0.38 | 0.40 | 0.41 | 0.38 | 0.42 | 0.41 |
| Dividends/Share | $3.80 | $3.80 | $3.76 | $3.68 | $3.52 | $2.80 |
| Operating Income | 1.5B | 1.4B | 1.3B | 1.6B | 1.8B | 3.0B |
| Operating Margin | 3.7% | 3.3% | 3.0% | 3.6% | 3.9% | 5.9% |
| ROE | 37.1% | 37.0% | 31.6% | 42.4% | 48.8% | 64.5% |
| Shares Outstanding | 211M | 212M | 217M | 218M | 226M | 249M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 40.3B | 39.5B | 39.4B | 42.2B | 42.9B | 43.6B | 47.3B | 51.8B | 46.3B | 43.5B | 41.5B | 41.7B | 41.9B |
| Gross Margin | 22.4% | 23.3% | 24.0% | 23.4% | 23.2% | 23.0% | 22.4% | 22.5% | 21.4% | 22.1% | 22.6% | 22.5% | 22.5% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 7.6B | 7.6B | 7.5B | 8.0B | 8.0B | 8.0B | 7.9B | 8.6B | 8.0B | 7.9B | 7.7B | 7.6B | 7.6B |
| EBIT | 1.4B | 1.4B | 1.9B | 1.8B | 1.9B | 2.0B | 2.4B | 3.0B | 1.8B | 1.6B | 1.3B | 1.4B | 1.5B |
| Op. Margin | 3.6% | 3.5% | 4.7% | 4.4% | 4.4% | 4.6% | 5.1% | 5.9% | 3.9% | 3.6% | 3.0% | 3.3% | 3.7% |
| Net Income | 1.2B | 897M | 1.2B | 1.0B | 1.5B | 1.5B | 1.8B | 2.5B | 1.4B | 1.2B | 927M | 1.1B | 1.1B |
| Net Margin | 3.1% | 2.3% | 3.1% | 2.4% | 3.4% | 3.5% | 3.8% | 4.7% | 3.1% | 2.9% | 2.2% | 2.6% | 2.7% |
| Non-Recurring | 6.0M | 297M | 39M | 10M | 46M | 41M | 254M | 34M | 147M | 176M | 478M | 205M | 72M |
| Returns on Capital | |||||||||||||
| ROIC | 45.0% | 24.3% | 37.7% | 39.3% | 46.0% | 57.0% | N/M | 187.6% | 67.9% | 47.1% | 32.4% | 42.1% | 45.0% |
| ROE | 27.5% | 19.1% | 27.0% | 24.0% | 42.3% | 45.4% | 44.6% | 64.5% | 48.8% | 42.4% | 31.6% | 37.0% | 37.1% |
| ROA | 8.4% | 6.2% | 9.0% | 7.4% | 11.3% | 10.8% | 10.4% | 13.4% | 8.5% | 8.1% | 6.2% | 7.3% | 7.7% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 1.9B | 1.3B | 2.6B | 2.1B | 2.4B | 2.6B | 4.9B | 3.3B | 1.8B | 1.5B | 2.1B | 2.0B | 2.3B |
| Free Cash Flow | 1.4B | 694M | 2.0B | 1.5B | 1.6B | 1.8B | 4.2B | 2.5B | 894M | 675M | 1.4B | 1.3B | 1.6B |
| Owner Earnings | 1.2B | 582M | 1.8B | 1.3B | 1.5B | 1.6B | 4.0B | 2.2B | 768M | 402M | 1.1B | 992M | 1.3B |
| CapEx | 561M | 649M | 580M | 688M | 819M | 743M | 713M | 737M | 930M | 795M | 706M | 704M | 698M |
| Maint. CapEx | 656M | 657M | 654M | 683M | 770M | 812M | 839M | 869M | 918M | 923M | 866M | 831M | 814M |
| Growth CapEx | 0 | 0 | 0 | 5.0M | 49M | 0 | 0 | 0 | 12M | 0 | 0 | 0 | 0 |
| D&A | 656M | 657M | 654M | 683M | 770M | 812M | 839M | 869M | 918M | 923M | 866M | 831M | 814M |
| CapEx/OCF | 29.0% | 49.1% | 22.7% | 32.1% | 34.0% | 29.0% | 14.5% | 22.7% | 51.0% | 54.1% | 33.7% | N/A | 30.3% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 251M | 499M | 505M | 409M | 497M | 527M | 568M | 688M | 789M | 801M | 807M | 801M | 801M |
| Dividend Yield | 3.5% | 6.0% | 6.1% | 3.2% | 3.3% | 3.5% | 2.9% | 3.0% | 5.1% | 5.5% | 4.7% | N/A | 4.4% |
| Share Buybacks | 0 | 1.0B | 698M | 2.0B | 1.5B | 1.0B | 312M | 3.5B | 1.0B | 340M | 500M | 273M | 173M |
| Buyback Yield | N/A | 15.2% | 6.9% | 11.3% | 11.7% | 5.4% | 1.3% | 17.4% | 6.1% | 2.3% | 2.8% | 0.0% | 1.0% |
| Stock-Based Comp | 87M | 104M | 108M | 129M | 123M | 143M | 135M | 141M | 138M | 145M | 139M | 139M | 139M |
| Debt Repayment | 24M | 28M | 394M | 46M | 546M | 15M | 1.9B | 133M | 19M | 19M | 17M | 13M | 13M |
| Balance Sheet | |||||||||||||
| Net Debt | -2.3B | -1.5B | -2.6B | -1.8B | -592M | -958M | -4.1B | -1.7B | -698M | -282M | -424M | -562M | -580M |
| Cash & Equiv. | 2.4B | 2.0B | 2.2B | 1.1B | 2.0B | 2.2B | 5.5B | 2.9B | 1.9B | 1.4B | 1.6B | 1.7B | 1.7B |
| Long-Term Debt | 1.6B | 1.3B | 1.3B | 811M | 1.3B | 1.3B | 1.3B | 1.2B | 1.2B | 1.2B | 1.1B | 1.2B | 1.2B |
| Debt/Equity | 0.32 | 0.40 | 0.29 | 0.38 | 0.42 | 0.37 | 0.30 | 0.41 | 0.42 | 0.38 | 0.41 | 0.40 | 0.38 |
| Interest Coverage | 16.1 | 17.2 | 25.8 | 24.6 | 26.0 | 31.4 | 46.0 | 121.6 | 51.3 | 30.3 | 24.7 | 29.6 | 33.5 |
| Equity | 5.0B | 4.4B | 4.7B | 3.6B | 3.3B | 3.5B | 4.6B | 3.0B | 2.8B | 3.1B | 2.8B | 3.0B | 3.1B |
| Total Assets | 15.2B | 13.5B | 13.9B | 13.0B | 12.9B | 15.6B | 19.1B | 17.5B | 15.8B | 15.0B | 14.8B | 14.7B | 14.9B |
| Total Liabilities | 10.3B | 9.1B | 9.1B | 9.4B | 9.6B | 12.1B | 14.5B | 14.5B | 13.0B | 11.9B | 12.0B | 11.7B | -311M |
| Intangibles | N/A | N/A | N/A | N/A | 18M | 18M | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | 4.1B | 4.1B | 4.4B | 3.3B | 3.0B | 3.2B | 4.2B | 2.7B | 2.4B | 2.7B | 2.5B | 2.6B | 2.7B |
| Working Capital | 3.7B | 3.0B | 3.4B | 2.0B | 1.4B | 797M | 2.0B | -135M | -177M | -12M | 208M | 825M | 943M |
| Current Assets | 11.5B | 9.9B | 10.5B | 9.8B | 8.9B | 8.9B | 12.5B | 10.5B | 8.8B | 7.9B | 8.2B | 8.5B | 8.7B |
| Current Liabilities | 7.8B | 6.9B | 7.1B | 7.8B | 7.5B | 8.1B | 10.5B | 10.7B | 9.0B | 7.9B | 8.0B | 7.7B | 7.8B |
| Per Share Data | |||||||||||||
| EPS | 3.49 | 2.56 | 3.81 | 3.26 | 5.20 | 5.75 | 6.84 | 9.84 | 6.29 | 5.68 | 4.28 | 5.04 | 5.45 |
| Owner EPS | 3.37 | 1.66 | 5.57 | 4.33 | 5.38 | 6.01 | 15.04 | 8.99 | 3.40 | 1.84 | 5.05 | 4.68 | 6.41 |
| Book Value | 14.14 | 12.49 | 14.61 | 11.78 | 11.74 | 12.98 | 17.45 | 12.11 | 12.39 | 13.97 | 12.96 | 13.97 | 14.63 |
| Cash Flow/Share | 5.48 | 3.83 | 7.93 | 6.98 | 8.55 | 9.57 | 18.74 | 13.04 | 8.09 | 6.73 | 9.69 | 9.25 | 9.29 |
| Dividends/Share | 0.72 | 1.43 | 1.57 | 1.36 | 1.80 | 2.00 | 2.20 | 2.80 | 3.52 | 3.68 | 3.76 | 3.80 | 3.80 |
| Shares Out. | 353.3M | 350.4M | 322.3M | 306.7M | 281.5M | 268.0M | 262.9M | 249.4M | 225.6M | 218.5M | 216.6M | 212.1M | 210.7M |
| Valuation | |||||||||||||
| P/E Ratio | 6.7 | 7.3 | 8.3 | 17.8 | 8.8 | 12.2 | 13.3 | 8.2 | 11.7 | 12.0 | 19.2 | N/A | 15.7 |
| P/FCF | 6.0 | 9.5 | 5.2 | 12.3 | 8.1 | 10.3 | 5.7 | 8.0 | 18.6 | 22.0 | 12.8 | N/A | 11.2 |
| EV/EBIT | 4.2 | 3.9 | 4.1 | 9.0 | 5.4 | 7.7 | 6.0 | 5.1 | 7.8 | 8.4 | 12.6 | N/A | 11.3 |
| Price/Book | 1.7 | 1.5 | 2.2 | 4.9 | 3.9 | 5.4 | 5.2 | 6.7 | 6.0 | 4.9 | 6.4 | N/A | 5.8 |
| Price/Sales | 0.2 | 0.2 | 0.2 | 0.3 | 0.4 | 0.3 | 0.4 | 0.4 | 0.3 | 0.3 | 0.4 | N/A | 0.4 |
| FCF Yield | 16.5% | 10.6% | 19.4% | 8.2% | 12.4% | 9.7% | 17.7% | 12.5% | 5.4% | 4.5% | 7.8% | N/A | 8.9% |
| Market Cap | 8.3B | 6.6B | 10.2B | 17.8B | 12.8B | 18.7B | 23.8B | 20.2B | 16.6B | 14.9B | 17.8B | 0 | 18.0B |
| Avg. Price | 20.24 | 23.69 | 25.78 | 41.13 | 53.56 | 55.85 | 75.15 | 92.34 | 68.64 | 66.93 | 79.07 | 0.00 | 85.43 |
| Year-End Price | 23.51 | 18.75 | 31.61 | 58.03 | 45.51 | 69.92 | 90.72 | 80.90 | 73.76 | 68.06 | 82.35 | 0.00 | 85.43 |
BEST BUY CO INC passes 4 of 9 quality checks, suggesting mixed fundamentals.
BEST BUY CO INC trades at 13.4x trailing earnings, compared to its 15-year median P/E of 12.0x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 16.1x vs a median of 10.3x. The company's 5-year average ROIC is 75.4% with a gross margin of 22.2%. Total shareholder yield (dividends + buybacks) is 5.4%. At current prices, the estimated annualized return to fair value is -17.4%.
BEST BUY CO INC (BBY) has a net profit margin of 2.6%. This is a modest margin.
BEST BUY CO INC (BBY) generated $1.3 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
BEST BUY CO INC (BBY) has a debt-to-equity ratio of 0.40. This indicates a conservatively financed balance sheet.
BEST BUY CO INC (BBY) reported earnings per share (EPS) of $5.04 in its most recent fiscal year.
BEST BUY CO INC (BBY) has a return on equity (ROE) of 37.0%. This indicates the company generates strong returns for shareholders.
BEST BUY CO INC (BBY) has a 5-year average gross margin of 22.2%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 19 years of financial data for BEST BUY CO INC (BBY), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
BEST BUY CO INC (BBY) has a book value per share of $13.97, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects fiscal 2027 to benefit from continued momentum in Best Buy Ads and Marketplace, with advertising collections projected to grow approximately 10% and U.S. Marketplace GMV expected to reach at least $1.2 billion, both contributing positively to gross profit rates. The company plans its first domestic store growth in over a decade, opening six new stores while closing only two, reflecting confidence in market demand and the success of smaller store formats tested in prior periods. Computing category growth is anticipated to be driven by Windows 10 end-of-support replacement cycles and AI-related innovation, while home theater is expected to benefit from the exclusive national retail launch of RGB television technology mid-year and expanded in-store experiences. Management is investing in digital capabilities including AI-powered search, personalization, and app engagement, while maintaining labor as a flat percentage of revenue and expecting vendor-provided labor hours to grow again. The company expects gross profit rate improvement of approximately 30 basis points from ads and marketplace growth, though product margin rates face pressure from higher input costs partially offset by assortment strategy and promotional discipline.
Based on recent SEC filings and earnings calls, BEST BUY CO INC (BBY) has provided the following forward guidance: Revenue: $41.2 billion–$42.1 billion (FY2027); Comparable sales growth: -1% to +1% (FY2027); Best Buy Ads collections growth: approximately 10% (FY2027); U.S. Marketplace GMV: at least $1.2 billion (FY2027); Gross profit rate improvement: approximately 30 basis points (FY2027), plus 3 additional metrics.
U.S. Marketplace GMV (FY2027): “We expect the U.S. Marketplace GMV to be at least $1.2 billion for the year.”
Gross profit rate improvement (FY2027): “We expect our gross profit rate to improve by approximately 30 basis points, driven by growth from Best Buy Ads in our U.S. Marketplace.”
Share repurchases (FY2027): “Lastly, we expect to spend approximately $300 million on share repurchases.”
Q1 FY2027 comparable sales growth (Q1 FY2027): “We expect our first quarter comparable sales growth to be approximately 1%.”
Q2 FY2027 comparable sales growth (Q2 FY2027): “Our comparable sales outlook for the full quarter is approximately 1% growth as we start to lap last year's very successful gaming launch in June.”