One-glance verdict
Within fair range
$79.54 our estimate vs market $89.11
Wall Street consensus: $86.70 (9.0% higher than our fair-value estimate)
12% above our estimate
Fundamentals snapshot
Best Buy Co., Inc.
BBY · NYQ · Consumer Cyclical · Specialty Retail
Current price
$89.11
52-week range
$55.10 - $91.27
Market cap
$18.69B
Balance sheet
Watch
37.23x Strong cushion
Net debt $1.73B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 0.4% last year.
- Reward Returns 43.1% on equity, ahead of 50% of its peers.
- Risk Net debt grew 13.8% over 3 years.
- Risk Operating margin compressed from 4.2% to 3.9% over 3 years.
What this company does
Best Buy Co., Inc.
Best Buy is a large retail store known for selling electronics like TVs, computers, and phones, as well as home appliances like refrigerators and washing machines. The company makes most of its money from selling these physical items, but is also focused on growing its income from services like Geek Squad tech support and recurring memberships (plans that customers pay for regularly, like monthly or yearly). This matters because its financial health depends on a mix of big, one-time purchases and a steady stream of service fees from a loyal customer base.
How the company got here
Best Buy started in 1966 as a small stereo shop in Minnesota called Sound of Music. In 1983, the company changed its name to Best Buy and shifted its focus to a broader range of consumer electronics, eventually becoming a large, big-box retailer. A key moment was the acquisition of Geek Squad in 2002, which added a significant service business of tech support and installation to its retail sales. Facing intense competition from online retailers, the company has focused on leveraging its physical stores for in-person advice, product demonstrations, and as service and pickup hubs.
What it actually does
Best Buy is a retailer that sells technology products and provides related services. Shoppers can find items like computers, mobile phones, TVs, and home appliances in their stores and on their website. Beyond just selling products, the company also offers services such as delivery, installation, repairs, and technical support through its Geek Squad brand. They also offer membership programs that provide perks like tech support and protection plans for purchased products.
Domestic
This is Best Buy's main business, covering all its operations within the United States. It makes up the vast majority of the company's sales, over 90% of total revenue. This segment sells a wide range of electronics and appliances through its physical stores and website. It also includes services like installation and repair from Geek Squad, as well as revenue from its membership programs and a growing advertising business called Best Buy Ads.
International
This segment includes all of Best Buy's operations outside of the United States, which is currently just in Canada. It's a much smaller piece of the company, contributing less than 10% of total revenue. The Canadian stores and website operate similarly to the U.S. business, selling consumer electronics and offering related services to customers in that country.
What management is betting on now
Best Buy's leadership is focused on expanding beyond just selling products by growing its service and membership offerings. They are also investing in newer revenue streams like Best Buy Ads, which is their retail media network, and an online Marketplace that allows other sellers to offer products on Best Buy's website. The company aims to enhance the customer experience by integrating its physical stores and online presence, making it easier for customers to shop, get advice, and receive support. There is also a focus on health technology, aiming to provide products and services that help people with their health and wellness.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q4
$-449.00M
FY2026 Q1
$1.36B
FY2026 Q2
$-132.00M
FY2026 Q3
$574.00M
FY2026 Q4
$-287.00M
FY2027 Q2
$215.00M
FY2027 Q3
$737.00M
Revenue
—
Net income
$315.00M
Diluted EPS
1.48
Operating cash flow
$921.00M
Free cash flow
$737.00M
Fetching…
Sources
Revenue
—
Net income
$276.00M
Diluted EPS
1.31
Operating cash flow
$375.00M
Free cash flow
$215.00M
Fetching…
Sources
Revenue
—
Net income
$140.00M
Diluted EPS
0.66
Operating cash flow
$-99.00M
Free cash flow
$-287.00M
Fetching…
Sources
Revenue
—
Net income
$186.00M
Diluted EPS
0.87
Operating cash flow
$749.00M
Free cash flow
$574.00M
Fetching…
Sources
Revenue
$8.77B
Net income
$202.00M
Diluted EPS
0.95
Operating cash flow
$34.00M
Free cash flow
$-132.00M
Fetching…
Sources
Revenue
$13.95B
Net income
$117.00M
Diluted EPS
0.55
Operating cash flow
$1.54B
Free cash flow
$1.36B
Fetching…
Sources
Revenue
$9.45B
Net income
$273.00M
Diluted EPS
1.26
Operating cash flow
$-256.00M
Free cash flow
$-449.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $79.54 vs current price $89.11
Wall Street consensus is the average analyst price target: $86.70 (9.0% higher than our fair-value estimate).
Our most-likely fair value is $79.54 a share — about 10.7% away from today's price of $89.11, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $1.7B. Interest coverage 37.2x.
Net debt
$1.73B
Interest coverage
37.23x
Best Buy Co., Inc.'s profit covers its interest bill about 37.2 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
BBY
BASELINE
Best Buy Co., Inc.
Total debt $4.14B Interest coverage 37.23x This is the baseline the peer rows are being compared against.
Total debt $7.96B Interest coverage 20.68x -44% vs BBY Carries about 1.8x less debt cushion than BBY.
Total debt $1.53B Interest coverage 759.10x +1,939% vs BBY Carries about 20.4x more debt cushion than BBY.
Total debt $4.33B Interest coverage 10.63x -71% vs BBY Carries about 3.5x less debt cushion than BBY.
Total debt $2.52B Interest coverage 866.71x +2,228% vs BBY Carries about 23.3x more debt cushion than BBY.
Total debt $2.04B Interest coverage 34.71x -7% vs BBY Has roughly the same debt cushion as BBY.
What you should know
The case for and against BBY
3 Rewards
2 Risks
Rewards
-
Revenue grew 0.4% last year.
-
Returns 43.1% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 13.8% over 3 years.
-
Operating margin compressed from 4.2% to 3.9% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
14.83x
Forward P/E
12.35x
P/B
5.89x
P/S
0.44x
EV/EBITDA
7.71x
PEG ratio
1.72x
Profitability
How much profit each dollar creates
Gross margin
22.6%
Operating margin
3.9%
Net margin
3.0%
ROE
43.1%
ROA
7.3%
Health
Liquidity and balance-sheet strength
Debt / equity
1.30x
Current ratio
1.12x
Quick ratio
0.37x
Total debt
$4.14B
Total cash
$2.41B
Growth
How the business has been compounding
Revenue TTM
$65.08B
Revenue 5Y CAGR
-5.3%
EPS TTM
6.01
EPS 5Y CAGR
-7.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.48B
Free CF TTM
$1.26B
FCF margin
1.9%
Dividend
Shareholder payout
Yield
4.4%
Payout ratio
63.6%
Last ex-div date
2026-09-17