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Best Buy Co. Inc.
BBY
85.55 (0.41%) 0.35
18.29(B)
Consumer Discretionary
Specialty Retail
Best Buy Co. Inc. engages in the retail of technology products in the United States Canada and international. Its stores provide computing and mobile phone 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 products portable audio comprising headphones and portable speakers and smart home products as well as home theaters which includes home theater accessories soundbars and televisions. The company’s stores also offer appliances such as dishwashers laundry ovens refrigerators blenders coffee makers vacuums and personal care; entertainment products consisting of drones peripherals movies and toys as well as 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 delivery installation memberships repair set-up technical support health-related 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 Buy Mobile CST Current Health Geek Squad Lively Magnolia Pacific Kitchen Home TechLiquidators and Yardbird brands as well as domain names comprising bestbuy.com currenthealth.com lively.com techliquidators.com yardbird.com and bestbuy.ca. The company was formerly known as Sound of Music Inc. Best Buy Co. Inc. was incorporated in 1966 and is headquartered in Richfield Minnesota.
Holdings:
Shares:
Cost basis:

Best Buy Co. Inc. (BBY) price target and intrinsic value estimate

BBY's fair price estimate is $90.8

This valuation is based on a fair P/E of 11.3 and EPS estimates of $8.07

The median analyst price target for BBY is $100.0.

Analyst price targets range from $80.0 to $117.0

Is BBY overvalued or undervalued?

BBY is currently trading at $85.55

BBY is undervalued by 6% using the pevaluation method.

BBY is undervalued by 14% compared to median analyst price targets.

Do you agree with this valuation?

Valuation

PEvaluation

Low $68.1
Median $90.8
High $113.5
Fair P/E
Margin of safety

Analyst valuation

Low $80.0
Median $100.0
High $117.0
Strong Buy3
Buy8
Hold18
Sell0
Strong Sell1

Discounted cash-flow

TTM FCFFCF est.Growth FCFTerminal FCF
10%
5%
5y
10%
Shares outstan...ROICRevenue growthDebt/FCFAssets/Liabili...
Economic moat: None/narrow
None/narrowMediumWideVery wide

Overview

Market data

Market cap:$18.29(B)
Enterprise value:$21.54(B)
Total Equity:$3.08(B)
Shares outstanding:213.80(M)
Div. yield:4.37%
P/S:0.44
P/E:14.52
P/FCF:17.75
P/B:5.93
EPS:$5.9
FCF per share:$4.8
Dividend per share:$3.7

Income (TTM)

RevenueGrossNet
Revenue$42.23(B)
Gross profit$9.47(B)
EBITDA$2.65(B)
Net income$1.27(B)
Gross margin22.4%
Net margin3.0%

Balance sheet

Cash & ST inv.Other ST assetsLong term assetsCurrent liabilitiesLong term debtOther LT liabilitiesEquity
Total assets$17.02(B)
Total liabilities$13.94(B)
Cash & Short-term inv.$832.00(M)
Long-term debt$1.14(B)
Debt issued$0
Debt repaid$-19.00(M)

Cash flow (TTM)

CFOCFICFF
FCF$1.03(B)
CapEx$-711.00(M)
Dividends paid$-805.00(M)
Stock issued$19.00(M)
Stock repurchased$-355.00(M)
Stock-based comp.$143.00(M)

Future Growth

Revenue

CAGR: 2.5%
FY+1$41.28(B)
FY+2$41.87(B)
FY+3$42.94(B)
FY+4$44.03(B)
FY+5$45.51(B)

Net Income

CAGR: 6.8%
FY+1$1.34(B)
FY+2$1.40(B)
FY+3$1.53(B)
FY+4$1.60(B)
FY+5$1.74(B)

EPS

CAGR: 18.9%
FY+1$6.21
FY+2$6.65
FY+3$7.44
FY+4$8.96
FY+5$12.41

FCF per share

CAGR: 10.4%
FY+1$10.34
FY+2$10.97
FY+3$12.61

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Historical Financials

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