Best Buy Gross Profit vs. Beta

BBY Stock  USD 81.87  1.81  2.26%   
Based on the key profitability measurements obtained from Best Buy's financial statements, Best Buy Co may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in April. Profitability indicators assess Best Buy's ability to earn profits and add value for shareholders.

Best Buy Gross Profit

6.48 Billion

Operating Cash Flow Sales Ratio is likely to rise to 0.05 in 2024, whereas Price To Sales Ratio is likely to drop 0.17 in 2024. At this time, Best Buy's Accumulated Other Comprehensive Income is fairly stable compared to the past year. Net Income Applicable To Common Shares is likely to rise to about 1.7 B in 2024, whereas Operating Income is likely to drop slightly above 1.1 B in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.250.2196
Fairly Up
Very volatile
Net Profit Margin0.00640.0286
Way Down
Pretty Stable
Operating Profit Margin0.02050.0395
Way Down
Pretty Stable
Pretax Profit Margin0.01090.0373
Way Down
Very volatile
Return On Assets0.020.0829
Way Down
Pretty Stable
Return On Equity0.04810.4065
Way Down
Slightly volatile
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.
  
Check out Trending Equities.
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 Beta vs. Gross Profit 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 rated fourth in gross profit category among related companies. It is rated fifth in beta category among related companies . The ratio of Gross Profit to Beta for Best Buy Co is about  6,568,588,469 . At this time, Best Buy's Gross Profit is fairly stable compared to the past year.. 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 Beta vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Best Buy

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
9.91 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
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

Beta

 = 

Covariance

Variance

 = 
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.

Best Beta Comparison

Best Buy is currently under evaluation in beta category among related companies.

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 ReportedProjected for 2024
Accumulated Other Comprehensive Income317 M332.9 M
Operating Income1.7 B1.1 B
Income Before Tax1.6 B1.1 B
Total Other Income Expense Net-95 M-90.2 M
Net Income1.2 B821.8 M
Income Tax Expense381 M369.1 M
Interest Income6.3 MM
Net Income Applicable To Common Shares1.6 B1.7 B
Net Interest Income-52 M-54.6 M
Net Income From Continuing Ops1.2 B1.3 B
Non Operating Income Net Other26.1 M23.2 M
Change To Netincome400.2 M278.3 M
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.
Pair CorrelationCorrelation Matching

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 Commodities Funds Thematic Idea Now

Commodities Funds
Commodities Funds Theme
Funds or Etfs investing in commodities such as oil, gold, corn, soy, and agricultural goods. The Commodities Funds theme has 39 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 Commodities Funds Theme or any other thematic opportunities.
View All  Next Launch
When determining whether Best Buy offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Best Buy's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Best Buy Co Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Best Buy Co Stock:
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

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.
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
CEOs Directory
Screen CEOs from public companies around the world
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
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.
Potential Best Buy investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Best Buy investors may work on each financial statement separately, they are all related. The changes in Best Buy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Best Buy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.