BBY Relative Valuation
BBY's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, BBY is overvalued; if below, it's undervalued.
Historical Valuation
Best Buy Co Inc (BBY) is now in the Undervalued zone, suggesting that its current forward PE ratio of 11.18 is considered Undervalued compared with the five-year average of 12.53. The fair price of Best Buy Co Inc (BBY) is between 79.35 to 93.72 according to relative valuation methord. Compared to the current price of 74.38 USD , Best Buy Co Inc is Undervalued By 6.27%.
Relative Value
Fair Zone
79.35-93.72
Current Price：74.38
6.27%
Undervalued
11.13
PE
1Y
3Y
5Y
Trailing
Forward
7.06
EV/EBITDA
Best Buy Co Inc. (BBY) has a current EV/EBITDA of 7.06. The 5-year average EV/EBITDA is 7.38. The thresholds are as follows: Strongly Undervalued below 5.97, Undervalued between 5.97 and 6.68, Fairly Valued between 8.08 and 6.68, Overvalued between 8.08 and 8.79, and Strongly Overvalued above 8.79. The current Forward EV/EBITDA of 7.06 falls within the Historic Trend Line -Fairly Valued range.
10.29
EV/EBIT
Best Buy Co Inc. (BBY) has a current EV/EBIT of 10.29. The 5-year average EV/EBIT is 10.79. The thresholds are as follows: Strongly Undervalued below 8.42, Undervalued between 8.42 and 9.61, Fairly Valued between 11.98 and 9.61, Overvalued between 11.98 and 13.17, and Strongly Overvalued above 13.17. The current Forward EV/EBIT of 10.29 falls within the Historic Trend Line -Fairly Valued range.
0.37
PS
Best Buy Co Inc. (BBY) has a current PS of 0.37. The 5-year average PS is 0.44. The thresholds are as follows: Strongly Undervalued below 0.27, Undervalued between 0.27 and 0.35, Fairly Valued between 0.52 and 0.35, Overvalued between 0.52 and 0.61, and Strongly Overvalued above 0.61. The current Forward PS of 0.37 falls within the Historic Trend Line -Fairly Valued range.
5.46
P/OCF
Best Buy Co Inc. (BBY) has a current P/OCF of 5.46. The 5-year average P/OCF is 9.35. The thresholds are as follows: Strongly Undervalued below 0.50, Undervalued between 0.50 and 4.93, Fairly Valued between 13.78 and 4.93, Overvalued between 13.78 and 18.21, and Strongly Overvalued above 18.21. The current Forward P/OCF of 5.46 falls within the Historic Trend Line -Fairly Valued range.
10.78
P/FCF
Best Buy Co Inc. (BBY) has a current P/FCF of 10.78. The 5-year average P/FCF is 14.83. The thresholds are as follows: Strongly Undervalued below 4.46, Undervalued between 4.46 and 9.65, Fairly Valued between 20.02 and 9.65, Overvalued between 20.02 and 25.20, and Strongly Overvalued above 25.20. The current Forward P/FCF of 10.78 falls within the Historic Trend Line -Fairly Valued range.
Best Buy Co Inc (BBY) has a current Price-to-Book (P/B) ratio of 5.91. Compared to its 3-year average P/B ratio of 5.84 , the current P/B ratio is approximately 1.19% higher. Relative to its 5-year average P/B ratio of 6.07, the current P/B ratio is about -2.76% higher. Best Buy Co Inc (BBY) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 7.80%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 8.29% , the current FCF yield is about -100.00% lower.
5.88
P/B
Median3y
5.84
Median5y
6.07
9.69
FCF Yield
Median3y
7.80
Median5y
8.29
Competitors Valuation Multiple
The average P/S ratio for BBY's competitors is 0.00, providing a benchmark for relative valuation. Best Buy Co Inc Corp (BBY) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 2.40%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of BBY decreased by 11.65% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 18.05 to 24.51.
The secondary factor is the Revenue Growth, contributed 2.40%to the performance.
Overall, the performance of BBY in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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