Spotlight
Best Buy: High-Water Marks Meet Insider Cashing Out
A multi-million dollar insider sale tests investor sentiment near 52-week highs. With underlying sales growth modest, valuation leaves little margin for error.
StockLarge CapConsumerNYSE · Retail-Radio, Tv & Consumer Electronics Stores
BBY
BEST BUY CO INC
StockLarge CapConsumerRetailValueQuote as of Sep 18, 4:00 PM ET · delayed
Fairly Valued
- Price
- USD 92.85
- Day change
- -1.81%
- Fair value
- USD 85.00
- Upside
- -8.5%
- Market cap
- USD 19.7B
- 52-week range
- USD 55–USD 96
- Employees
- —
- Founded
- —
- HQ
- RICHFIELD, MN
Is BEST BUY CO (BBY) stock undervalued?
Fairly Valued. Our fair value estimate is USD 85.00 against a price of USD 92.85, -8% implied downside. Reasoning and scenarios are in Best Buy: High-Water Marks Meet Insider Cashing Out.
The business
Revenue by segment
Revenue by geography
1 reports
Published research
Quarters
Earnings coverage
No earnings notes for this company yet.
History
Financial performance
Revenue (USD, billions)
Margins (%)
Free cash flow (USD, billions)
Estimated ROIC (%)
Net debt (USD, billions)
Monetary values are in USD; revenue, FCF and net debt are in billions; EPS is per share. Missing values appear as gaps and “Not available.” Source: SEC EDGAR XBRL filings, latest restated values; quarterly cash flow derived from year-to-date figures; Q4 = fiscal year minus nine months. ROIC is NOPAT (21% tax) over debt plus equity.
| Period | Revenue | Gross % | Op % | FCF | EPS | ROIC % | Net debt |
|---|---|---|---|---|---|---|---|
| FY2017 | 39.4 | 24.0 | 4.71 | 1.98 | 3.81 | 24.9 | -1.08 |
| FY2019 | 42.1 | 23.4 | 4.37 | 1.45 | 3.26 | Not available | Not available |
| FY2020 | 42.9 | 23.2 | 4.43 | 1.59 | 5.20 | 32.0 | -0.59 |
| FY2021 | 43.6 | 23.0 | 4.60 | 1.82 | 5.75 | 33.4 | -0.96 |
| FY2021 | 47.3 | 22.4 | 5.06 | 4.21 | 6.84 | 32.3 | -4.23 |
| FY2022 | 51.8 | 22.5 | 5.87 | 2.52 | 9.84 | 56.5 | -1.71 |
| FY2023 | 46.3 | 21.4 | 3.88 | 0.89 | 6.29 | 35.7 | -0.70 |
| FY2025 | 43.5 | 22.1 | 3.62 | 0.68 | 5.68 | 29.5 | -0.28 |
| FY2026 | 41.5 | 22.6 | 3.04 | 1.39 | 4.28 | 25.2 | -0.42 |
| FY2026 | 41.7 | 22.5 | 3.33 | 1.26 | 5.04 | Not available | Not available |
Fair value
Valuation view
Current price
USD 92.85
Fair value estimate
USD 85.00
Implied upside
-8.5%
Scenario model
Bear
25%USD 68
Direct equity valuation using 16.0x normalized earnings
Consumer demand softens in computing and appliances, promotion increases to defend volume, and operating margins compress back toward 3.0%.
Base
55%USD 85
Direct equity valuation using 18.5x normalized EPS
Low-single-digit sales trajectory, stable retail margins aided by retail media ads and marketplace commissions, with steady dividend payouts.
Bull
20%USD 105
Direct equity valuation using 20.0x expanded EPS
An accelerated device replacement cycle takes hold, driving operating margins toward 4.0% alongside stronger high-margin services adoption.
Thesis tracker
| 2026-09-19 | USD 85 | Fairly Valued | Initial coverage spotlight following insider selling interest and 52-week high trading range. |
Developments
Company news
No news items logged for this company yet.