Best Buy Beta vs. Total Debt
| BBY Stock | USD 76.00 0.23 0.30% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.25 | 0.2196 |
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| Net Profit Margin | 0.0064 | 0.0286 |
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| Operating Profit Margin | 0.0205 | 0.0395 |
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| Pretax Profit Margin | 0.0109 | 0.0373 |
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| Return On Assets | 0.02 | 0.0829 |
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| Return On Equity | 0.0481 | 0.4065 |
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For Best Buy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Best Buy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Best Buy Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Best Buy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Best Buy Co over time as well as its relative position and ranking within its peers.
Best |
Is Best Buy's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Best Buy. If investors know Best will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Best Buy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.05) | Dividend Share 3.68 | Earnings Share 5.68 | Revenue Per Share 199.596 | Quarterly Revenue Growth (0.01) |
The market value of Best Buy is measured differently than its book value, which is the value of Best that is recorded on the company's balance sheet. Investors also form their own opinion of Best Buy's value that differs from its market value or its book value, called intrinsic value, which is Best Buy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Best Buy's market value can be influenced by many factors that don't directly affect Best Buy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Best Buy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Best Buy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Best Buy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Best Buy Total Debt vs. Beta Fundamental Analysis
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. Best Buy Co is number one stock in beta category among related companies. It is rated fifth in total debt category among related companies making up about 2,644,090,305 of Total Debt per Beta. Total Debt To Capitalization is likely to rise to 0.44 in 2024. 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.Best Total Debt vs. Beta
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Best Buy |
| = | 1.51 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Best Buy |
| = | 3.98 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Best Total Debt vs Competition
Best Buy Co is rated fifth in total debt category among related companies. Total debt of Consumer Discretionary industry is currently estimated at about 139.21 Billion. Best Buy holds roughly 3.98 Billion in total debt claiming about 2.86% of stocks in Consumer Discretionary industry.
Beta Analysis
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Best Buy will likely underperform.
Best Buy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Best Buy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Best Buy will eventually generate negative long term returns. The profitability progress is the general direction of Best Buy's change in net profit over the period of time. It can combine multiple indicators of Best Buy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 317 M | 332.9 M | |
| Operating Income | 1.7 B | 1.1 B | |
| Income Before Tax | 1.6 B | 1.1 B | |
| Total Other Income Expense Net | -95 M | -90.2 M | |
| Net Income | 1.2 B | 821.8 M | |
| Income Tax Expense | 381 M | 369.1 M | |
| Interest Income | 6.3 M | 6 M | |
| Net Income Applicable To Common Shares | 1.6 B | 1.7 B | |
| Net Interest Income | -52 M | -54.6 M | |
| Net Income From Continuing Ops | 1.2 B | 1.3 B | |
| Non Operating Income Net Other | 26.1 M | 23.2 M | |
| Change To Netincome | 400.2 M | 278.3 M | |
| Net Income Per Share | 5.70 | 0.01 | |
| Income Quality | 1.18 | 1.57 | |
| Net Income Per E B T | 0.77 | 0.58 |
Best Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Best Buy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Best Buy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Best Buy's important profitability drivers and their relationship over time.
Use Best Buy in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Best Buy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Best Buy will appreciate offsetting losses from the drop in the long position's value.Best Buy Pair Trading
Best Buy Co Pair Trading Analysis
The ability to find closely correlated positions to Best Buy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Best Buy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Best Buy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Best Buy Co to buy it.
The correlation of Best Buy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Best Buy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Best Buy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Best Buy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Best Buy position
In addition to having Best Buy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Emerging Markets Funds Thematic Idea Now
Emerging Markets Funds
Fund or Etfs that invest in markets of developing countries. The Emerging Markets Funds theme has 48 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Emerging Markets Funds Theme or any other thematic opportunities.
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Check out Trending Equities. Note that the Best Buy information on this page should be used as a complementary analysis to other Best Buy's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
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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To fully project Best Buy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Best Buy at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Best Buy's income statement, its balance sheet, and the statement of cash flows.