Best Buy Co., Inc. (BBY)

DCF Valuation · Consumer Cyclical · Specialty Retail

Valuation as at 2026-08-04 · refreshed with the S&P 500 Most Undervalued screen

About Best Buy Co., Inc.

Best Buy Co., Inc. offers technology products and solutions in the United States, Canada, and internationally. The company provides computing and mobile phone products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer electronics consisting of digital imaging, health and fitness products, portable audio comprising headphones and portable speakers, and smart home products, as well as home theaters that includes home theater accessories, soundbars, and televisions.

Source: Yahoo Finance company profile · factual description, not KashVector commentary

Best Buy Co., Inc. BBY

Consumer Cyclical · Specialty Retail

Price
$85.25
Market Cap
$17.97B
Free Cash Flow
$1.14B
Beta
1.32
P/E (TTM)
15.8x
52-Week Range
$55.10–$91.27

BBY's price & financial trends

Quarterly reporting periods — the most granular consistent series Yahoo provides for this market.

Data refreshed 2026-08-04

Share price · last 2 years

$86.26 -14% vs first period
S&P 500 $100.40$85.80$66.69$73.64$66.93$60.49$86.26 2024-082024-122025-042025-082025-122026-042026-07

Earnings per share (diluted)

$1.31 +38% vs first period
$0.95$0.87$0.66$2.56$1.31Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Free cash flow

$0.21B +263% vs first period
-$0.13B$0.57B-$0.29B$1.10B$0.21BQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Dividend per share

$0.96 +1% vs first period
$0.95$0.95$0.94$0.94$0.96Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Intrinsic value estimate · 5-year forecast

BEAR
$73.57
vs current $85.25
-13.7% ⚠️ Fairly Valued
BASE
$129.88
vs current $85.25
+52.4% ✅ Undervalued
BULL
$224.25
vs current $85.25
+163.1% ✅ Undervalued

Assumptions used in this valuation

Every input below is either fetched live from Yahoo Finance or a documented default — nothing is hidden.

Risk-free rate
4.75% ● LIVE
Live 10-yr govt bond
Beta
1.32
Direct from Yahoo
Equity risk premium
5.50%
Market-specific seed
Cost of debt
5.00%
Estimated (no debt/interest data)
Tax rate
25.00%
Estimated default
Capital structure
E 81% / D 19%
Market cap vs total debt
Projection horizon
5 years
+ terminal value beyond
BearBaseBull
5-yr FCF growth9.9%19.9%29.8%
Terminal growth2.5%2.5%2.5%
WACC (discount rate)11.45%10.45%9.45%

Cost of Equity = Risk-free rate + Beta × Equity Risk Premium = 4.75% + 1.32 × 5.50% = 11.99% · WACC = weighted by 81%/19% capital structure

These numbers come from running Best Buy Co., Inc.'s cash flows through the mechanical DCF formula and assumptions above — not from any view on the news, management, or BBY's competitive position. What is DCF?

Want to test your own growth or discount-rate assumptions?Open the full interactive calculator, pre-filled with BBY →

More S&P 500 Most Undervalued stocks

Not financial advice. DCF valuations are highly sensitive to assumptions — small changes in growth rate or discount rate produce large swings in output. This is a mechanical calculation, not a recommendation to buy, hold, or sell.

About this valuation

Refreshed on the same cycle as the S&P 500 Most Undervalued screen. Change any assumption yourself in the full interactive tool.

Frequently asked questions

Is BBY undervalued?

The Base-case DCF estimates intrinsic value at $129.88 vs a current price of $85.25 — a +52.4% margin, so the Base case reads undervalued. This is a mechanical output, not advice.