Best Buy

BBY US Consumer Discretionary Computer & Electronics Retail
S&P 500
$90.64
+2.89%
Delayed · cached 15 min
Fair Value Analysis →

Fair value analysis

BBY
Best Buy
Consumer DiscretionaryComputer & Electronics Retail
$88.09
Close used for this calculation
$123.04Fair value
Financial DNA Score
Profitability · Returns · Balance Sheet · Efficiency · Growth
68/100
Profitability17/25
Returns18/25
Balance Sheet15/25
Efficiency18/25
Growth25/25
Strong
Quality radar
68Prof.17/25Ret.18/25Eff.18/25B.Sht15/25Growth25/25

Consensus fair value

$123.04
Below FV
▲ +39.7% against the close used
Model range $41.18 – $205.02
The lowest and highest of the models that produced a value. This is the spread of the methods, not a price target.

Price target range & 52-week position

Bear$41.18Fair value$123.04Bull$205.02
FairClose
52W low $55.5252W high $90.27

The 52-week range is measured from the stored price history, not estimated.

Valuation summary

Trading below the consensus fair value

Best Buy closed at $88.09, 39.7% below the consensus fair value of $123.04 drawn from 9 valuation models.

Financial DNA score 68/100 — Strong. P/E of 17.5x against the 20x sector multiple the P/E model uses.

Quantitative summary only — not investment advice.

All valuation models

DCF Valuation
$117.73
+33.6%
Σ[CF×(1+g)^n/(1.10)^n] + TV/(1.10)^10
g=9%, r=10%, tg=3%, n=10yr
Graham Number
$41.18
-53.2%
√(22.5 × EPS × BVPS)
EPS=5.04, BVPS=14.96 · outside Graham range (P/E 17.5, P/B 5.9) — asset-light, treat as a rough floor
P/E Fair Value
$100.80
+14.4%
EPS × 20x (sector P/E)
EPS=5.04, Sector P/E=20x
Peter Lynch (PEG)
$136.63
+55.1%
EPS × Growth% (PEG = 1 is fair)
EPS=5.04, g=27.1%
EV/EBITDA
$188.40
+113.9%
(EBITDA × 18x − Net Debt) ÷ Shares
EBITDA=2.22B
Dividend Discount (DDM)
$205.02
+132.7%
D1 ÷ (r − g) where D1 = D0×(1+g)
D0=3.8, r=10%, g=8%
Book Value (P/B)
$103.12
+17.1%
BVPS × (ROE−g)÷(r−g) [Justified P/B — RIM-based]
BVPS=14.96, ROE=33.6%, g=6%, r=10%
Reverse DCF
$88.09
+0.0%
Solve for g: Price = Σ[EPS×(1+g)^n/(1.10)^n] + TV
Implied: 5.3% | Historical: 27.1%
Margin of Safety
$64.93
-26.3%
Avg(DCF, Graham, P/E) × 75% (25% safety buffer)
Avg fair value=86.57, MoS=25%

Computed on September 11, 2026 from the most recent annual report on file and that day's closing price. Where a company has seen its earnings move sharply since its last annual report, this figure will lag the market.

Educational data only. Not a recommendation to buy, sell or hold any security.

Educational data only. Not a recommendation to buy, sell or hold any security.