Best Buy Valuation

BBY Stock  USD 77.13  0.89  1.14%   
At this time, the firm appears to be fairly valued. Best Buy shows a prevailing Real Value of $79.16 per share. The current price of the firm is $77.13. Our model approximates the value of Best Buy from analyzing the firm fundamentals such as Return On Equity of 0.42, profit margin of 0.03 %, and Current Valuation of 19.34 B as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor acquiring undervalued instruments and dropping overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Price Book
5.5045
Enterprise Value
19.3 B
Enterprise Value Ebitda
7.45
Price Sales
0.3868
Forward PE
12.8866
Fairly Valued
Today
77.13
Please note that Best Buy's price fluctuation is very steady at this time. Calculation of the real value of Best Buy is based on 3 months time horizon. Increasing Best Buy's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Best Buy Co is useful when determining the fair value of the Best stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Best Buy. Since Best Buy is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Best Stock. However, Best Buy's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  77.13 Real  79.16 Target  81.81 Hype  77.11
The real value of a stock, also known as the intrinsic value, is the underlying worth of a company that is reflected in its stock price. It is based on the company's financial performance, assets, liabilities, growth prospects, management team, industry conditions, and other relevant factors. The real value of a stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, price-to-book ratio, and other valuation metrics. The real value of a stock may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence the stock's price. It is important to note that the real value of a stock is not a fixed number and may change over time based on changes in the company's performance and other relevant factors.
79.16
Real Value
80.79
Upside
Estimating the potential upside or downside of Best Buy Co helps investors to forecast how Best stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Best Buy more accurately as focusing exclusively on Best Buy's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
1.041.081.15
Details
Hype
Prediction
LowEstimatedHigh
75.4877.1178.74
Details
30 Analysts
Consensus
LowTarget PriceHigh
74.4581.8190.81
Details

Best Buy Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Best Buy's current stock value. Our valuation model uses many indicators to compare Best Buy value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Best Buy competition to find correlations between indicators driving Best Buy's intrinsic value. More Info.
Best Buy Co is rated fourth in net asset category among related companies. It is rated second in price to book category among related companies . The ratio of Net Asset to Price To Book for Best Buy Co is about  2,719,048,052 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Best Buy by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Best Buy's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Best Buy's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Best Buy's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Best Buy and how it compares across the competition.

About Best Buy Valuation

The stock valuation mechanism determines the current worth of Best Buy Co on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Best Buy Co. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Best Buy based exclusively on its fundamental and basic technical indicators. By analyzing Best Buy's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Best Buy's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Best Buy. We calculate exposure to Best Buy's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Best Buy's related companies.
Best Buy Co., Inc. retails technology products in the United States and Canada. The company was incorporated in 1966 and is headquartered in Richfield, Minnesota. Best Buy operates under Specialty Retail classification in the United States and is traded on New York Stock Exchange. It employs 57750 people.

Best Buy Quarterly Retained Earnings

2.68 Billion

8 Steps to conduct Best Buy's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Best Buy's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Best Buy's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Best Buy's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Best Buy's revenue streams: Identify Best Buy's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Best Buy's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Best Buy's growth potential: Evaluate Best Buy's management, business model, and growth potential.
  • Determine Best Buy's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Best Buy's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Best Buy's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Best Buy's value is low or high relative to the company's performance and growth projections. Determining the market value of Best Buy can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Best Buy represents a small ownership stake in the entity. As a stockholder of Best, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Best Buy Dividends Analysis For Valuation

There are various types of dividends Best Buy can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Best shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Best Buy Co directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Best pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Best Buy by the value of the dividends paid out.

Best Buy Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Best Buy does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding218.5 M
Quarterly Earnings Growth Y O Y-0.054
Forward Price Earnings12.8866
When determining whether Best Buy offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Best Buy's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Best Buy Co Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Best Buy Co Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Best Buy Co. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of labor statistics.
Note that the Best Buy information on this page should be used as a complementary analysis to other Best Buy's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

Complementary Tools for Best Stock analysis

When running Best Buy's price analysis, check to measure Best Buy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Best Buy is operating at the current time. Most of Best Buy's value examination focuses on studying past and present price action to predict the probability of Best Buy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Best Buy's price. Additionally, you may evaluate how the addition of Best Buy to your portfolios can decrease your overall portfolio volatility.
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Is Best Buy's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Best Buy. If investors know Best will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Best Buy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.05)
Dividend Share
3.68
Earnings Share
5.68
Revenue Per Share
199.596
Quarterly Revenue Growth
(0.01)
The market value of Best Buy is measured differently than its book value, which is the value of Best that is recorded on the company's balance sheet. Investors also form their own opinion of Best Buy's value that differs from its market value or its book value, called intrinsic value, which is Best Buy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Best Buy's market value can be influenced by many factors that don't directly affect Best Buy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Best Buy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Best Buy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Best Buy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.