Best Buy Co., Inc.

Best Buy Co., Inc.

BBYยทNYSE

$71.73

-4.3%
Consumer CyclicalSpecialty Retail

Best Buy Co., Inc. retails technology products in the United States and Canada. The company operates in two segments, Domestic and International. Its stores provide computing products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer electronics consisting of digital imaging, health and fitness, home theater, portable audio comprising headphones and portable speakers, and smart home products. The company's stores also offer appliances, such as dishwashers, laundry, ovens, refrigerators, blenders, coffee makers, and vacuums; entertainment products consisting of drones, peripherals, movies, music, and toys, as well as gaming hardware and software, and virtual reality and other software products; and other products, such as baby, food and beverage, luggage, outdoor living, and sporting goods. In addition, it provides consultation, delivery, design, health-related, installation, memberships, repair, set-up, technical support, and warranty-related services. The company offers its products through stores and websites under the Best Buy, Best Buy Ads, Best Buy Business, Best Buy Health, CST, Current Health, Geek Squad, Lively, Magnolia, Best Buy Mobile, Pacific Kitchen, Home, and Yardbird, as well as domain names bestbuy.com, currenthealth.com, lively.com, yardbird.com, and bestbuy.ca. As of January 30, 2022, it had 1,144 stores. The company was formerly known as Sound of Music, Inc. The company was incorporated in 1966 and is headquartered in Richfield, Minnesota.

At a Glance

Live Snapshot
Market Cap$15.11B
EPS5.0600
P/E Ratio14.18
Earnings Date06/04/2026
Best Buy Co., Inc.

Best Buy Co., Inc. Fair Value Envelope

BBY ยท NYSE

Our analysis suggests that BBY has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $71.73, this represents a potential HIDDEN relative to our calculated worth for Best Buy Co., Inc..

Intrinsic Value
Current Price: $71.73

Owner Earnings Valuation Tool

Warren Buffett's Owner Earnings DCF analysis for intrinsic value calculation

Historical Financial Data

Base year metrics used for projections

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Projection Settings

Forecast period and terminal assumptions

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DCF Valuation Summary

Calculation flow from present value to intrinsic value per share

Present Value$13.0B
+ Cash & Equivalents$1.7B
Firm Value$14.7B
- Debt$4.1B
Equity Value$10.6B
/ Shares Outstanding210,101,265B
DCF Value$50
OVERVALUED BY 30%

Owner Earnings Projections

Operating Cash Flow - Maintenance CapEx = Owner Earnings

Metric
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Operating Cash Flow
$1.8B
$1.6B
$1.4B
$1.3B
$1.2B
$1.1B
$966.0M
$873.0M
$789.0M
$713.0M
Maintenance CapEx
-$127.2M
-$115.0M
-$103.9M
-$93.9M
-$84.9M
-$76.7M
-$69.3M
-$62.7M
-$56.6M
-$51.2M
Owner Earnings
$1.6B
$1.5B
$1.3B
$1.2B
$1.1B
$992.2M
$896.7M
$810.4M
$732.4M
$661.9M
Discount Factor
0.926
0.857
0.794
0.735
0.681
0.630
0.583
0.540
0.500
0.463
Present Value
$1.5B
$1.3B
$1.1B
$893.0M
$747.2M
$625.3M
$523.2M
$437.8M
$366.4M
$306.6M
Terminal Value represents 40.2% of Enterprise Value