Best Buy Co Stock Current Valuation

BBY Stock  USD 81.87  1.81  2.26%   
Valuation analysis of Best Buy helps investors to measure Best Buy's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. Enterprise Value Multiple is likely to rise to 8.37 in 2024. Fundamental drivers impacting Best Buy's valuation include:
Price Book
5.648
Enterprise Value
19.8 B
Enterprise Value Ebitda
7.6188
Price Sales
0.3968
Forward PE
13.2275
Overvalued
Today
81.87
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.
Our valuation method for Best Buy Co is useful when determining the fair value of the Best stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Best Buy. 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  81.87 Real  77.34 Target  81.81 Hype  81.77 Naive  83.31
The real value of Best Stock, also known as its intrinsic value, is the underlying worth of Best Buy Company, which is reflected in its stock price. It is based on Best Buy's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. 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.
77.34
Real Value
90.06
Upside
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:
Earnings
Estimates (0)
LowProjectedHigh
1.041.081.15
Details
Hype
Prediction
LowEstimatedHigh
80.0981.7783.45
Details
Potential
Annual Dividend
LowForecastedHigh
2.282.402.52
Details
30 Analysts
Consensus
LowTarget PriceHigh
74.4581.8190.81
Details

Best Current Valuation Analysis

Best Buy's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
 2021 2022 2023 2024 (projected)
Short and Long Term Debt Total3.9B4.0B4.0B4.2B
Total Assets17.5B15.8B15.0B9.7B

Enterprise Value

 = 

Market Cap + Debt

-

Cash

More About Current Valuation | All Equity Analysis

Current Best Buy Current Valuation

    
  19.78 B  
Most of Best Buy's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Best Buy Co is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Best Current Valuation Driver Correlations

Understanding the fundamental principles of building solid financial models for Best Buy is extremely important. It helps to project a fair market value of Best Stock properly, considering its historical fundamentals such as Current Valuation. Since Best Buy's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Best Buy's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Best Buy's interrelated accounts and indicators.
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Click cells to compare fundamentals
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Competition

In accordance with the recently published financial statements, Best Buy Co has a Current Valuation of 19.78 B. This is 9.27% higher than that of the Specialty Retail sector and 53.9% lower than that of the Consumer Discretionary industry. The current valuation for all United States stocks is 18.97% lower than that of the firm.

Best Current Valuation Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Best Buy's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Best Buy could also be used in its relative valuation, which is a method of valuing Best Buy by comparing valuation metrics of similar companies.
Best Buy is currently under evaluation in current valuation category among related companies.

Best Buy ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Best Buy's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Best Buy's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

Best Fundamentals

About Best Buy Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Best Buy Co's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Best Buy using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Best Buy Co based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Best Buy Co., Inc. retails technology products in the United States and Canada. The company was incorporated in 1966 and is headquartered in Richfield, Minnesota. Best Buy operates under Specialty Retail classification in the United States and is traded on New York Stock Exchange. It employs 57750 people.

Pair Trading with Best Buy

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.

Moving together with Best Stock

  0.73W Wayfair Financial Report 2nd of May 2024 PairCorr
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Moving against Best Stock

  0.55BGI Birks GroupPairCorr
  0.51FNKO Funko Inc Financial Report 2nd of May 2024 PairCorr
  0.51DIT AMCON Distributing Fiscal Quarter End 31st of March 2024 PairCorr
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
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 Best Buy Piotroski F Score and Best Buy Altman Z Score analysis.
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

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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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.