BBY PE Ratio & Valuation,Is BBY Overvalued

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 10.40 is considered Undervalued compared with the five-year average of 12.49. The fair price of Best Buy Co Inc (BBY) is between 77.90 to 92.36 according to relative valuation methord. Compared to the current price of 68.83 USD , Best Buy Co Inc is Undervalued By 11.64%.

Relative Value

Fair Zone

77.90-92.36

Current Price：68.83

11.64%

Undervalued

10.40

6.57

EV/EBITDA

Best Buy Co Inc. (BBY) has a current EV/EBITDA of 6.57. The 5-year average EV/EBITDA is 7.37. The thresholds are as follows: Strongly Undervalued below 5.96, Undervalued between 5.96 and 6.66, Fairly Valued between 8.08 and 6.66, Overvalued between 8.08 and 8.79, and Strongly Overvalued above 8.79. The current Forward EV/EBITDA of 6.57 falls within the Undervalued range.

9.59

EV/EBIT

Best Buy Co Inc. (BBY) has a current EV/EBIT of 9.59. The 5-year average EV/EBIT is 10.80. 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 9.59 falls within the Undervalued range.

0.34

Best Buy Co Inc. (BBY) has a current PS of 0.34. The 5-year average PS is 0.43. 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 0.60, and Strongly Overvalued above 0.60. The current Forward PS of 0.34 falls within the Undervalued range.

5.06

P/OCF

Best Buy Co Inc. (BBY) has a current P/OCF of 5.06. The 5-year average P/OCF is 9.10. The thresholds are as follows: Strongly Undervalued below 0.65, Undervalued between 0.65 and 4.87, Fairly Valued between 13.33 and 4.87, Overvalued between 13.33 and 17.56, and Strongly Overvalued above 17.56. The current Forward P/OCF of 5.06 falls within the Historic Trend Line -Fairly Valued range.

10.00

P/FCF

Best Buy Co Inc. (BBY) has a current P/FCF of 10.00. The 5-year average P/FCF is 14.62. The thresholds are as follows: Strongly Undervalued below 4.40, Undervalued between 4.40 and 9.51, Fairly Valued between 19.73 and 9.51, Overvalued between 19.73 and 24.84, and Strongly Overvalued above 24.84. The current Forward P/FCF of 10.00 falls within the Historic Trend Line -Fairly Valued range.

Best Buy Co Inc (BBY) has a current Price-to-Book (P/B) ratio of 5.48. Compared to its 3-year average P/B ratio of 5.82 , the current P/B ratio is approximately -5.97% higher. Relative to its 5-year average P/B ratio of 6.06, the current P/B ratio is about -9.64% higher. Best Buy Co Inc (BBY) has a Forward Free Cash Flow (FCF) yield of approximately 10.44%. Compared to its 3-year average FCF yield of 7.90%, the current FCF yield is approximately 32.20% lower. Relative to its 5-year average FCF yield of 8.13% , the current FCF yield is about 28.41% lower.

5.48

P/B

Median3y

5.82

Median5y

6.06

10.44

FCF Yield

Median3y

7.90

Median5y

8.13

Competitors Valuation Multiple

The average P/S ratio for BBY's competitors is 0.70, providing a benchmark for relative valuation. Best Buy Co Inc Corp (BBY) exhibits a P/S ratio of 0.34, which is -51.19% above the industry average. Given its robust revenue growth of 2.40%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of BBY decreased by 18.82% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 17.80 to 22.89.

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.

2.40%

9.45B → 9.67B

Revenue Growth

-49.83%

2.89 → 1.45

Margin Expansion

28.61%

17.80 → 22.89

P/E Change

-18.82%

84.78 → 68.83

Mkt Cap Growth

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Frequently Asked Questions

Is Best Buy Co Inc (BBY) currently overvalued or undervalued?

What is Best Buy Co Inc (BBY) fair value?

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. The fair price of Best Buy Co Inc (BBY) is between 77.90 to 92.36 according to relative valuation methord.

How does BBY's valuation metrics compare to the industry average?

What is the current P/B ratio for Best Buy Co Inc (BBY) as of Jan 08 2026?

As of Jan 08 2026, Best Buy Co Inc (BBY) has a P/B ratio of 5.48. This indicates that the market values BBY at 5.48 times its book value.

What is the current FCF Yield for Best Buy Co Inc (BBY) as of Jan 08 2026?

As of Jan 08 2026, Best Buy Co Inc (BBY) has a FCF Yield of 10.44%. This means that for every dollar of Best Buy Co Inc’s market capitalization, the company generates 10.44 cents in free cash flow.

What is the current Forward P/E ratio for Best Buy Co Inc (BBY) as of Jan 08 2026?

As of Jan 08 2026, Best Buy Co Inc (BBY) has a Forward P/E ratio of 10.40. This means the market is willing to pay $10.40 for every dollar of Best Buy Co Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Best Buy Co Inc (BBY) as of Jan 08 2026?

As of Jan 08 2026, Best Buy Co Inc (BBY) has a Forward P/S ratio of 0.34. This means the market is valuing BBY at $0.34 for every dollar of expected revenue over the next 12 months.

BBY Valuation