Best Buy Valuation
| BBY Stock | MXN 1,285 75.00 5.51% |
At this time, the firm appears to be overvalued. Best Buy shows a prevailing Real Value of 1087.8 per share. The current price of the firm is 1285.0. Our model approximates the value of Best Buy from analyzing the firm fundamentals such as Profit Margin of 0.03 %, current valuation of 416.68 B, and Return On Equity of 0.43 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.
Overvalued
Today
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 1285.0 | Real 1087.8 | Hype 1285.0 | Naive 1261.48 |
The real value of Best Stock, also known as its intrinsic value, is the underlying worth of Best Buy Company, which is reflected in its stock price. It is based on Best Buy's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Best Buy's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value 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 Best Buy's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
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: 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 number one stock in price to earning category among related companies. It is number one stock in price to book category among related companies fabricating about 0.02 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Best Buy Co is roughly 42.07 . 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. operates as a retailer of technology products, services, and solutions in the United States, Canada, and Mexico. Best Buy Co., Inc. was founded in 1966 and is headquartered in Richfield, Minnesota. Best Buy operates under Specialty Retail classification in Mexico and is traded on Mexico Stock Exchange. It employs 125000 people.
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.
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 board of governors. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
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.
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