NYSE · BBY

Best Buy Co., Inc.

Consumer Cyclical · Specialty Retail

$88.09▲ 0.07% ($0.06)at close

As of 4:00 PM ET

52-week

$55.10$91.27

Market cap

$18.57B

P/E

What the market price implies · Reverse DCF

To support a price of $88.09, this model requires Stage 1 FCFF to grow by 0.84%/yr over the next 5 years, compounded annually.

Historical FCFF grew by 10.77%/yr over the past 10 years. The required annual growth rate is 9.94 percentage points lower.

Selected forecast · Base scenario

10.77%/yr · Stage 1 default · years 1–5

Annual overrides take precedence over the Stage 1 default.

Market-implied · Other assumptions held fixed

0.84%/yr · Stage 1 · years 1–5

Stage 1 growth is solved while Stage 2 growth, terminal growth, discount inputs, and annual overrides remain fixed. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Cash-flow DCF

Price used

$88.09

Estimated value / share

$130.43

Base scenario

This estimate is 48.06% above the price used.

USD · TTM ending 2026-08-01

FCFF base normalized by replacing latest capex with the company's trailing median capex-to-revenue ratio.

Historical FCFF CAGR and the default growth rates are taken from the raw historical series. The valuation base is normalized for the current-period DCF.

Reported total debt includes capitalised leases (~72% of the total). They are excluded from net debt and from the WACC weights because rent is already charged inside operating income. The Net Debt shown here is therefore lower than the balance-sheet figure elsewhere on this page.

Stage 1 10.77% · Stage 2 5.93% · Discount rate 11.54%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future free cash flow, discounted to its value today.

Price timestamp: Sep 10, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-08-01
Data refreshed: Sep 11, 2026, 12:29 AM UTC · provider

Why this method?

FCFF is positive, but the year-to-year swings are too large for a direct CAGR. Normalize the cash-flow base first, then run DCF.

Is FCFF positive and has it been for 3+ consecutive years? 13 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 107.3%.

Price vs Fundamentals

Why The Stock Is Moving

Fundamentals are supporting the moveHigh confidence

1Y Price: 14.98%Revenue (TTM): 1.45%FCF (TTM): 30.77%P/FCF: 43rd pct

What changed

The stock rose 14.98% over the last year. Revenue grew 1.45% over the trailing twelve months. Operating margin moved from 3.03% to 4.36%. Free cash flow grew 30.77% over the trailing twelve months.

What the market seems to be pricing

The stock move broadly lines up with stronger business momentum, and the shares are still only around the 43rd percentile of their historical P/FCF range.

What would invalidate this read

Operating margin is at 4.36%. Revenue grew 1.45% — this thesis depends on that trajectory holding. If revenue growth, margins, or free cash flow roll over while the stock keeps climbing, more of the move would be coming from multiple expansion than business progress.

Performance

Return analysis

Company profile

Best Buy Co., Inc. operates as a prominent technology retailer across the United States and Canada.

CEOCorie Sue Barry

SectorConsumer Cyclical

IndustrySpecialty Retail

Employees82,000

IPO dateApr 18, 1985

https://investors.bestbuy.com/overview/default.aspx

Market multiples

Forward P/E—

EV/EBITDA7.07

Enterprise value$16.13B

Stock splits

Aug 4, 2005↑ Forward

Every 2 shares became 3

+50%

May 13, 2002↑ Forward

Every 2 shares became 3

+50%

Mar 19, 1999↑ Forward

Every 1 shares became 2

+100%

May 27, 1998↑ Forward

Every 1 shares became 2

+100%

Apr 29, 1994↑ Forward

Every 1 shares became 2

+100%

Sep 2, 1993↑ Forward

Every 2 shares became 3

+50%

Feb 24, 1987↑ Forward

Every 2 shares became 3

+50%

Apr 1, 1986↑ Forward

Every 1 shares became 2

+100%

Profitability & growth

Revenue growth3.61%

Gross margin22.68%▼0.1ppvs FY2025

Operating margin4.36%0.0ppvs FY2025

ROE43.13%▲6.1ppvs FY2026

Analyst consensus

RatingHold

Target price$84.08▼4.55%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Nov 24, 2026

Q4 FY26 · EPS est $1.46 · Revenue est $9.89B

View

Dividends

$3.83/shareQuarterly9yr growth streakEx-div Sep 17, 2026 · in 7dAdequate

BBY pays a dividend with a 4.35% declared yield, 9 consecutive years of growth, growing at 7.64% annually, covered 1.6× by free cash flow.

Declared Yield

4.35%

Annual Div / Share

$3.83

5yr CAGR

+7.64%

Doubles every ~9.4yr

Payout Ratio

63.13%

Adequate

Dividend Growth Rate

3yr CAGR

+1.71%

5yr CAGR

+7.64%

10yr CAGR

+9.68%

Dividend Safety

6/10Adequate

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$3.83+1.1%

2025$3.79+1.3%

2024$3.74+2.7%

2023$3.64+9.0%

2022$3.34+26.0%

2021$2.65+23.3%

2020$2.15+10.3%

Income Projection

Invest

Growth rate:

Reinvest dividends

Today

$43/yr

$4/mo

In 5 yrs

$63/yr+45%

$5/mo

In 10 yrs

$91/yr+109%

$8/mo

Today	In 5 yrs	In 10 yrs
$43/yr $4/mo	$63/yr+45% $5/mo	$91/yr+109% $8/mo

Yield-on-cost grows from 4.35% → 9.08% over 10yr

Analysis

Dividend Strengths

Well-covered by free cash flow

The dividend is covered 1.6× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.

Strong dividend growth rate

The 5-year CAGR of 7.64% meaningfully outpaces inflation, compounding real income growth for long-term holders.

Risks to Watch

No strong risk signal stands out from the latest period pair.

NYSE · BBY

Best Buy Co., Inc.

Consumer Cyclical · Specialty Retail

$88.09▲ 0.07% ($0.06)at close

As of 4:00 PM ET

52-week

$55.10$91.27

Market cap

$18.57B

P/E

What the market price implies · Reverse DCF

To support a price of $88.09, this model requires Stage 1 FCFF to grow by 0.84%/yr over the next 5 years, compounded annually.

Historical FCFF grew by 10.77%/yr over the past 10 years. The required annual growth rate is 9.94 percentage points lower.

Selected forecast · Base scenario

10.77%/yr · Stage 1 default · years 1–5

Annual overrides take precedence over the Stage 1 default.

Market-implied · Other assumptions held fixed

0.84%/yr · Stage 1 · years 1–5

Stage 1 growth is solved while Stage 2 growth, terminal growth, discount inputs, and annual overrides remain fixed. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Cash-flow DCF

Price used

$88.09

Estimated value / share

$130.43

Base scenario

This estimate is 48.06% above the price used.

USD · TTM ending 2026-08-01

FCFF base normalized by replacing latest capex with the company's trailing median capex-to-revenue ratio.

Historical FCFF CAGR and the default growth rates are taken from the raw historical series. The valuation base is normalized for the current-period DCF.

Stage 1 10.77% · Stage 2 5.93% · Discount rate 11.54%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future free cash flow, discounted to its value today.

Price timestamp: Sep 10, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-08-01
Data refreshed: Sep 11, 2026, 12:29 AM UTC · provider

Why this method?

FCFF is positive, but the year-to-year swings are too large for a direct CAGR. Normalize the cash-flow base first, then run DCF.

Is FCFF positive and has it been for 3+ consecutive years? 13 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 107.3%.

Price vs Fundamentals

Why The Stock Is Moving

Fundamentals are supporting the moveHigh confidence

1Y Price: 14.98%Revenue (TTM): 1.45%FCF (TTM): 30.77%P/FCF: 43rd pct

What changed

The stock rose 14.98% over the last year. Revenue grew 1.45% over the trailing twelve months. Operating margin moved from 3.03% to 4.36%. Free cash flow grew 30.77% over the trailing twelve months.

What the market seems to be pricing

The stock move broadly lines up with stronger business momentum, and the shares are still only around the 43rd percentile of their historical P/FCF range.

What would invalidate this read

Performance

Return analysis

Company profile

Best Buy Co., Inc. operates as a prominent technology retailer across the United States and Canada.

CEOCorie Sue Barry

SectorConsumer Cyclical

IndustrySpecialty Retail

Employees82,000

IPO dateApr 18, 1985

https://investors.bestbuy.com/overview/default.aspx

Market multiples

Forward P/E—

EV/EBITDA7.07

Enterprise value$16.13B

Stock splits

Aug 4, 2005↑ Forward

Every 2 shares became 3

+50%

May 13, 2002↑ Forward

Every 2 shares became 3

+50%

Mar 19, 1999↑ Forward

Every 1 shares became 2

+100%

May 27, 1998↑ Forward

Every 1 shares became 2

+100%

Apr 29, 1994↑ Forward

Every 1 shares became 2

+100%

Sep 2, 1993↑ Forward

Every 2 shares became 3

+50%

Feb 24, 1987↑ Forward

Every 2 shares became 3

+50%

Apr 1, 1986↑ Forward

Every 1 shares became 2

+100%

Profitability & growth

Revenue growth3.61%

Gross margin22.68%▼0.1ppvs FY2025

Operating margin4.36%0.0ppvs FY2025

ROE43.13%▲6.1ppvs FY2026

Analyst consensus

RatingHold

Target price$84.08▼4.55%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Nov 24, 2026

Q4 FY26 · EPS est $1.46 · Revenue est $9.89B

View

Dividends

$3.83/shareQuarterly9yr growth streakEx-div Sep 17, 2026 · in 7dAdequate

BBY pays a dividend with a 4.35% declared yield, 9 consecutive years of growth, growing at 7.64% annually, covered 1.6× by free cash flow.

Declared Yield

4.35%

Annual Div / Share

$3.83

5yr CAGR

+7.64%

Doubles every ~9.4yr

Payout Ratio

63.13%

Adequate

Dividend Growth Rate

3yr CAGR

+1.71%

5yr CAGR

+7.64%

10yr CAGR

+9.68%

Dividend Safety

6/10Adequate

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$3.83+1.1%

2025$3.79+1.3%

2024$3.74+2.7%

2023$3.64+9.0%

2022$3.34+26.0%

2021$2.65+23.3%

2020$2.15+10.3%

Income Projection

Invest

Growth rate:

Reinvest dividends

Today

$43/yr

$4/mo

In 5 yrs

$63/yr+45%

$5/mo

In 10 yrs

$91/yr+109%

$8/mo

Today	In 5 yrs	In 10 yrs
$43/yr $4/mo	$63/yr+45% $5/mo	$91/yr+109% $8/mo

Yield-on-cost grows from 4.35% → 9.08% over 10yr

Analysis

Dividend Strengths

Well-covered by free cash flow

The dividend is covered 1.6× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.

Strong dividend growth rate

The 5-year CAGR of 7.64% meaningfully outpaces inflation, compounding real income growth for long-term holders.

Risks to Watch

No strong risk signal stands out from the latest period pair.