Best Buy is up 1.06

This article is intended for all current Best Buy investors and for investors considering a position in the company. I will inspect if investors should continue to be optimistic for the company outlook. In this post I will also go over different drivers effecting the organisation products and services and how it may effect the company investors. Best Buy shows prevailing Real Value of $57.6372 per share. The current price of the firm is $71.25. At this time the firm appears to be overvalued. Macroaxis approximates value of Best Buy from analyzing the firm fundamentals such as Current Valuation of 18.27B, Profit Margin of 3.41% and Return On Equity of 42.32% as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor to go long with undervalued instruments and to trade away overvalued instruments since at some point assets prices and their ongoing real values will blend.
Published over a year ago
View all stories for Best Buy | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Ellen Johnson

I believe Best Buy is overvalued at 57.64 per share with modest projections ahead. On a scale of 0 to 100 Best Buy holds performance score of 12. The firm shows Beta (market volatility) of 0.6036 which signifies that as returns on market increase, Best Buy returns are expected to increase less than the market. However during bear market, the loss on holding Best Buy will be expected to be smaller as well. Although it is vital to follow to Best Buy historical returns, it is good to be conservative about what you can actually do with the information regarding equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance including all available fundamental and technical indicators. By analyzing Best Buy technical indicators you can presently evaluate if the expected return of 0.4221% will be sustainable into the future. Please makes use of Best Buy Value At Risk as well as the relationship between Skewness and Day Median Price to make a quick decision on weather Best Buy price patterns will revert.
The performance of Best Buy Co in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Best Buy's stock prices. When investing in Best Buy, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Best Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Best Buy carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

And What about dividends?

A dividend is the distribution of a portion of Best Buy earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Best Buy dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Best one year expected dividend income is about USD2.42 per share.
Dividends Paid is likely to rise to about (761 M) in 2024. Dividend Yield is likely to drop to 0.02 in 2024.
Last ReportedProjected for Next Year
Dividends Paid-801 M-761 M
Dividend Yield 0.05  0.02 
Dividend Payout Ratio 0.65  0.20 
Dividend Paid And Capex Coverage Ratio(6.24)(6.55)
Investing in dividend-paying stocks, such as Best Buy Co is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Best Buy must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Best Buy. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Best Buy's Liquidity

Best Buy financial leverage refers to using borrowed capital as a funding source to finance Best Buy Co ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Best Buy financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Best Buy's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Best Buy's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Best Buy's total debt and its cash.

What do experts say about Best?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis Consensus

Breaking down Best Buy Further

Best Buy holds a total of two hundred sixty-nine million one hundred thousand outstanding shares. Majority of Best Buy Co outstanding shares are owned by other corporate entities. These outside corporations are referred to non-private investors that are looking to acquire positions in Best Buy to benefit from reduced commissions. Consequently, institutional investers are subject to different set of regulations than regular investors in Best Buy. Please pay attention to any change in the institutional holdings of Best Buy Co as this could imply that something significant has changed or about to change at the company. Also note that nearly two million six hundred ninety-one thousand invesors are currently shorting Best Buy expressing very little confidence in its future performance. The latest price spikes of Best Buy could raise concerns from investors as the firm closed today at a share price of 70.4 on 1930386 in volume. The company management were quite successful positioning the firm components to exploit market volatility in April 2019. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.3235. The current volatility is consistent with the ongoing market swings in February 2019 as well as with Best Buy unsystematic, company specific events. Best Buy discloses 125k in number of employees. Best Buy is selling for 71.25. This is 1.06 percent up. Day high is 71.68. Best Buy Earning Before Interest and Taxes USD is fairly stable at the moment. Best Buy Return on Average Equity is fairly stable at the moment. Furthermore, Best Buy Total Liabilities is fairly stable at the moment.
 2011 2012 2014 2015 2018 (projected)
Best Buy Current Assets 10,297,000,000  10,485,000,000  11,472,000,000  9,886,000,000  8,897,400,000 
Best Buy Total Assets 16,005,000,000  14,013,000,000  15,245,000,000  13,519,000,000  12,167,100,000 
To conclude, our analysis show that Best Buy Slowly supersedes market. The company is overvalued and projects probability of distress very small for the next 2 years. Our up-to-date buy-sell advice on the company is Strong Buy.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Best Buy Co. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com