Best Buy Co. Inc (BBY) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Best Buy Co. Inc stock (BBY) is currently trading at $60.40. Best Buy Co. Inc PE ratio is 12.24. Best Buy Co. Inc PS ratio (Price-to-Sales) is 0.31. Analyst consensus price target for BBY is $74.35. WallStSmart rates BBY as Hold.
- BBY PE ratio analysis and historical PE chart
- BBY PS ratio (Price-to-Sales) history and trend
- BBY intrinsic value — DCF, Graham Number, EPV models
- BBY stock price prediction 2025 2026 2027 2028 2029 2030
- BBY fair value vs current price
- BBY insider transactions and insider buying
- Is BBY undervalued or overvalued?
- Best Buy Co. Inc financial analysis — revenue, earnings, cash flow
- BBY Piotroski F-Score and Altman Z-Score
- BBY analyst price target and Smart Rating
Best Buy Co. Inc
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BBY Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Best Buy Co. Inc (BBY)
BBY trades at a significant discount to its Graham intrinsic value of $235.87, offering a 72% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Best Buy Co. Inc (BBY) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, peg ratio, return on equity. Concerns around operating margin and revenue growth. Fundamentals are solid but monitor weak areas for improvement.
Best Buy Co. Inc (BBY) Key Strengths (6)
Every $100 of shareholder equity generates $37 in profit
Paying less than $1 for every $1 of annual revenue
Earnings per share surging 372.50% year-over-year
100.38% of shares held by major funds and institutions
Large-cap company with substantial market presence
Good growth relative to its price
Supporting Valuation Data
Best Buy Co. Inc (BBY) Areas to Watch (4)
Revenue declining -1.00%, a shrinking business
Very thin margins with limited operational efficiency
Very thin margins, barely profitable
Premium pricing at 4.4x book value
Best Buy Co. Inc (BBY) Detailed Analysis Report
Overall Assessment
This company scores 64/100 in our Smart Analysis, earning a C+ grade. Out of 10 metrics analyzed, 6 register as strengths (avg 9.5/10) while 4 fall into concern territory (avg 2.0/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Return on Equity, Price/Sales, EPS Growth. Valuation metrics including PEG Ratio (1.19), Price/Sales (0.31) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 37.00%. Growth metrics are encouraging with EPS Growth at 372.50%.
The Bear Case
The primary concerns are Revenue Growth, Operating Margin, Profit Margin. Some valuation metrics including Price/Book (4.44) suggest expensive pricing. Growth concerns include Revenue Growth at -1.00%, which may limit upside. Profitability pressure is visible in Operating Margin at 5.02%, Profit Margin at 2.56%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Revenue Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 37.00% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at -1.00% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. The weight of evidence leans positive, with more strengths than concerns. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Return on Equity, Price/Sales) and negatives (Revenue Growth, Operating Margin). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
BBY Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
BBY's Price-to-Sales ratio of 0.31x trades at a 48% premium to its historical average of 0.21x (81th percentile). The current valuation is 24% below its historical high of 0.41x set in Jan 2018, and 520% above its historical low of 0.05x in Dec 2012.
WallStSmart Analysis Synopsis
Data-driven financial summary for Best Buy Co. Inc (BBY) · CONSUMER CYCLICAL › SPECIALTY RETAIL
The Big Picture
Best Buy Co. Inc faces headwinds with declining revenue, though profitability provides a cushion. Revenue reached 41.7B with 100% decline year-over-year. Profit margins are strong at 256.0%, reflecting pricing power and operational efficiency.
Key Findings
ROE of 3700.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 1.1B in free cash flow and 1.3B in operating cash flow. Earnings are translating into actual cash generation.
Revenue contracted 100% YoY. Worth determining whether this is cyclical or structural.
What to Watch Next
Dividend sustainability with a current yield of 6.0%. Watch payout ratio and free cash flow coverage.
Sector dynamics: monitor SPECIALTY RETAIL industry trends, competitive moves, and regulatory changes that could impact Best Buy Co. Inc.
Bottom Line
Best Buy Co. Inc faces challenges with declining revenue. While profitability provides a buffer, the long-term trajectory needs to improve. Watch for management's strategic response and whether the company can stabilize or pivot to new growth drivers.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Best Buy Co. Inc(BBY)
NYSE
CONSUMER CYCLICAL
SPECIALTY RETAIL
USA
Best Buy Co., Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota.