Best Buy Valuation
| BBY Stock | USD 89.54 3.03 3.50% |
At this time, the firm appears to be overvalued. Best Buy shows a prevailing Real Value of $82.99 per share. The current price of the firm is $89.54. Our model approximates the value of Best Buy from analyzing the firm fundamentals such as Profit Margin of 0.03 %, current valuation of 21.94 B, and Return On Equity of 0.42 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Best Buy's valuation include:
Price Book 6.1881 | Enterprise Value 21.9 B | Enterprise Value Ebitda 8.4759 | Price Sales 0.452 | Forward PE 13.1926 |
Overvalued
Today
Please note that Best Buy's price fluctuation is very steady at this time. Calculation of the real value of Best Buy is based on 3 months time horizon. Increasing Best Buy's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Best Buy is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Best Stock. However, Best Buy's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 89.54 | Real 82.99 | Target 81.81 | Hype 89.58 | Naive 86.86 |
The intrinsic value of Best Buy's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Best Buy's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Best Buy Co helps investors to forecast how Best stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Best Buy more accurately as focusing exclusively on Best Buy's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Best Buy's intrinsic value based on its ongoing forecasts of Best Buy's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Best Buy's closest peers.
Best Buy Cash |
|
Best Valuation Trend
Analysing the historical paterns of Best Buy's enterprise value and its market capitalization is a good way to estimate and gauge the value of Best Buy Co over time and is usually enough for investors to make rational market timing decisions.
Best Revenue by Product
Best Buy Total Value Analysis
Best Buy Co is currently forecasted to have company total value of 21.94 B with market capitalization of 19.23 B, debt of 3.98 B, and cash on hands of 1.87 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Best Buy fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
21.94 B | 19.23 B | 3.98 B | 1.87 B |
Best Buy Investor Information
About 87.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.47. Best Buy recorded earning per share (EPS) of 5.79. The entity last dividend was issued on the 19th of September 2024. The firm had 3:2 split on the 4th of August 2005. Based on the key measurements obtained from Best Buy's financial statements, Best Buy Co is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Operating Profit Margin | 0.0068 | 0.0362 |
|
| |||||
| Total Cash From Operating Activities | 1.5 B | 1.5 B |
|
| |||||
| Operating Income | 1.2 B | 1.6 B |
|
|
Best Buy Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Best Buy has an asset utilization ratio of 290.32 percent. This suggests that the Company is making $2.9 for each dollar of assets. An increasing asset utilization means that Best Buy Co is more efficient with each dollar of assets it utilizes for everyday operations.Best Buy Ownership Allocation
Best Buy holds a total of 214.72 Million outstanding shares. The majority of Best Buy Co outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Best Buy to benefit from reduced commissions. Consequently, institutional investors are subject to a 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 is about to change at the company. Please note that on March 7, 2024, Representative Michael C Burgess of US Congress acquired $15k to $50k worth of Best Buy's common stock.Best Buy Profitability Analysis
The company reported the last year's revenue of 43.45 B. Total Income to common stockholders was 1.24 B with profit before taxes, overhead, and interest of 9.91 B.Best Buy Past Distributions to stockholders
About Best Buy Valuation
Our relative valuation model uses a comparative analysis of Best Buy. We calculate exposure to Best Buy's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Best Buy's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 9.6 B | 6.5 B | |
| Operating Profit Margin | 0.04 | 0.01 | |
| Gross Profit Margin | 0.22 | 0.14 |
Best Buy Quarterly Retained Earnings |
|
A single share of Best Buy represents a small ownership stake in the entity. As a stockholder of Best, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Best Buy Dividends Analysis For Valuation
Dividends Paid is likely to drop to about 404.7 M in 2024. Dividend Yield is likely to drop to 0.02 in 2024. Price Earnings Ratio is likely to rise to 256.24 in 2024, whereas Retained Earnings are likely to drop slightly above 2.5 B in 2024.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 801 M | 404.7 M | |
| Dividend Yield | 0.05 | 0.02 | |
| Dividend Payout Ratio | 0.65 | 0.20 | |
| Dividend Paid And Capex Coverage Ratio | 0.92 | (0.23) |
There are various types of dividends Best Buy can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Best shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Best Buy Co directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Best pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Best Buy by the value of the dividends paid out.
Best Buy Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 218.5 M | |
| Quarterly Earnings Growth Y O Y | 0.072 | |
| Forward Price Earnings | 13.1926 |
Best Buy Current Valuation Indicators
Valuation refers to the process of determining the present value of Best Buy Co and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Best we look at many different elements of the entity such as Best's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Best Buy, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Best Buy's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Best Buy's worth.Additional 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.