# Best Buy Co. Inc. (BBY) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Consumer Cyclical / Specialty Retail. Price $90.27, market value $18.9 billion.

## Valuation
- **P/E (trailing): 15.0×** (5-yr avg 12.4×, 3-yr avg 14.3×). Best Buy Co. Inc. trades at 15.0× trailing earnings, well above its own five-year average of 12.4×: investors are paying up relative to the company's past. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 12.5×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.70**. A PEG of 0.70 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.4×**. Each dollar of revenue is priced at 0.4×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 6.0×**. The shares trade at 6.0× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 7.3×**. Enterprise value is 7.3× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 9.3%** (5-yr avg 8.1%). Free cash flow equals 9.3% of the market value, in line with its five-year average of 8.1%. Above 5% is generally attractive.
- **Earnings yield: 6.7%**. The inverse of the P/E: 6.7% of the price is earned each year.

## Profitability
- **Gross margin: 22.7%**. Best Buy Co. Inc. keeps 22.7% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 4.1%**. 4.1% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 2.6%**. 2.6% of each dollar of sales reaches the bottom line.
- **Return on equity: 36.1%**. 36.1% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 56.2%**. Return on all capital, debt included, is 56.2%: comfortably above what that capital costs.
- **Return on assets: 8.7%**. Each dollar of assets produces 8.7% of profit.

## Growth
- **Revenue growth (1 yr): 0.4%** (3-yr -3.4%/yr, 5-yr -2.5%/yr). Revenue grew 0.4% over the last year, against -2.5% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 17.8%** (3-yr -7.1%/yr, 5-yr -5.9%/yr). Earnings per share rose 17.8%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 12.1%/yr**. Free cash flow has compounded at 12.1% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.40**. Debt is 0.40 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Best Buy Co. Inc. holds more cash than debt.
- **Current ratio: 1.11** (quick 1.11). Current assets cover the next year's liabilities 1.11 times.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 4.25%** ($3.82 per share, trailing). Best Buy Co. Inc. yields 4.25%, an income-level yield.
- **Payout ratio: 75%** (45% of free cash flow). 75% of earnings goes out as dividends, leaving a thin cushion.
- **Consecutive years of increases: 8**. 8 straight years of increases.
- **Dividend growth (5 yr): 11.6%/yr** (1-yr 1.1%). The dividend has compounded at 11.6% a year over five years, doubling roughly every 6 years at that pace.

## Analyst view
- **Analyst consensus: hold** (20 analysts). 20 analysts cover Best Buy Co. Inc.; the consensus is hold, with an average price target of $86.43 (-4% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 23.7%** (YTD 38.7%, 3-mo 27.9%). The shares are up 23.7% over twelve months including dividends.
- **From 52-week high: -1.1%** (63.8% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 60**. An RSI of 60 is neutral.
- **Beta (1 yr): 0.74** (volatility 38%). Beta of 0.74 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=BBY · Page: https://foliofundamentals.com/stocks/bby

Not investment advice.