Best Buy Co., Inc. (BBY) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-27.4%

$70.10

vs $96.52 price

Levered DCF

$60.46

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

4.24

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	12.87×	19.92×	13.28×	13.5×	9.82×	15.7×	14.55×	11.03×
P/B	4.63×	6.58×	5.4×	6.85×	7.98×	6.16×	6.45×	4.89×
P/S	0.33×	0.44×	0.38×	0.41×	0.47×	0.6×	0.51×	0.38×
EV / EBITDA	7.07×	9.47×	7.32×	7.75×	6.41×	8.18×	8.43×	5.7×
Gross margin	22.5%	22.6%	22.1%	21.4%	22.5%	22.4%	23.0%	23.2%
Operating margin	4.2%	4.2%	3.6%	3.9%	5.8%	5.1%	4.6%	4.4%
Net margin	2.6%	2.2%	2.9%	3.1%	4.7%	3.8%	3.5%	3.4%
Current ratio	1.11×	1.03×	1×	0.98×	0.99×	1.19×	1.1×	1.18×
Debt / equity	1.39×	1.44×	1.3×	1.42×	1.3×	0.87×	1.15×	0.42×
Interest coverage	37.23×	34×	30.27×	51.29×	119.88×	45.98×	31.39×	26.03×
Dividend yield	5.8%	4.4%	4.9%	4.1%	2.9%	2.0%	2.3%	3.1%
Payout ratio	74.9%	87.1%	64.5%	55.6%	28.0%	31.6%	34.2%	33.9%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	36.1%	33.0%	40.6%	50.8%	81.3%	39.2%	44.3%	44.3%
Return on invested capital	17.4%	16.7%	15.7%	19.0%	32.4%	19.3%	18.9%	27.1%
Return on assets	7.3%	6.3%	8.3%	9.0%	14.0%	9.4%	9.9%	11.3%
Free cash flow yield	9.2%	7.5%	4.1%	4.7%	10.4%	14.9%	8.1%	9.8%
Earnings yield	7.8%	5.0%	7.5%	7.4%	10.2%	6.4%	6.9%	9.1%
Enterprise value	$16.1B	$21B	$19B	$21.3B	$25.1B	$26.7B	$24.2B	$15.6B
Net debt / EBITDA	1.05×	1.12×	0.98×	0.77×	0.26×	-0.46×	0.62×	-0.22×
Cash conversion cycle (days)	15	10	11	4	-0	-5	8	10