# Best Buy (BBY.US)

Canonical: https://gigainvestors.com/s/BBY

Analysis as of: 2026-10-16T07:26:49.875Z. Financial observations: FY1997–FY2027.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $94.17 per share; close as of 2026-10-15.

Estimated value: low $75.38 per share, central $85.00 per share, high $97.80 per share. Buy at or below the central value $85.00 per share. Valuation as of 2026-10-16T07:26:49.875Z; scenarios are not confidence intervals.

Expected annual return: 9.3% at the stated quote. About 9.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.13×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.04×

- FY2019: 0.04×

- FY2020: 0.05×

- FY2021: 0.05×

- FY2022: 0.06×

- FY2023: 0.04×

- FY2024: 0.04×

- FY2025: 0.04×

- FY2026: 0.04×

- LTM to Jul 2026: 0.04×

### moat: pass

- ROIC, median of available years: 38.5%

- ROIC, second-lowest year: 28.6%

- Typical minus recent gross margin: -0.1 pp

- Typical gross margin (annual median): 22.5%

- Recent gross margin (lower of latest and 3-year median): 22.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.7%

- ROIC including acquisitions, ten-year median: 31.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: 85.0%

- FY2019: 81.9%

- FY2020: 36.5%

- FY2021: 86.2%

- FY2022: 92.1%

- FY2023: 40.5%

- FY2024: 28.6%

- FY2025: 28.3%

- FY2026: 29.1%

- LTM to Jul 2026: 31.5%

### economics: pass

- Owner earnings / net income, 5-yr: 1.08×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $6.4B

- Net income, five-year total: $5.9B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.1 pp

- Working capital / revenue, change between three-year averages: 0.3 pp

- Working capital / revenue, final three-year average: 3.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2023: 0.99×

- FY2024: 1.10×

- FY2025: 1.17×

- FY2026: 1.12×

- LTM to Jul 2026: 1.07×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 81.9% vs 28.6%

- Per-share earnings: 3.26 to 5.04 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -4.9%

- Ordinary dilution, 5-year annual growth: -4.2%

- Market cap gain: -$238M

- Cumulative retained earnings: -$1.8B

- Diluted shares, 10-year annual growth: -4.9%

- Diluted shares, 5-year annual growth: -4.2%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 5.6%

- Per-share value change: $1.78

- Per-share value, starting three-year median: $3.26

- Per-share value, ending three-year median: $5.04

- Buybacks concentrated in cheaper years (correlation): 0.31

- Average buyback yield: 5.8%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $1.3B

- Cumulative net income, 10 years: $14B

- ROIC, first three-year median: 81.9%

- ROIC, last three-year median: 28.6%

Chart: Earnings per share; fiscal year observations.

- FY2017: $3.81

- FY2018: $3.26

- FY2019: $5.20

- FY2020: $5.75

- FY2021: $6.84

- FY2022: $9.84

- FY2023: $6.29

- FY2024: $5.68

- FY2025: $4.28

- FY2026: $5.04

### accounting: pass

- Sloan accruals: -6.1%

- Receivables to sales index (DSRI): 1.00×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 7.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.84×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.27×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -9.5%

- FY2018: -8.7%

- FY2019: -7.3%

- FY2020: -6.6%

- FY2021: -16.4%

- FY2022: -4.6%

- FY2023: -2.6%

- FY2024: -1.5%

- FY2025: -7.9%

- FY2026: -6.1%

## Holders

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 23% since Oct 2021 · "Best Buy's Comparable Sales Guidance Implies Growth Slow Down in Second Half, Wedbush Says" (finance.yahoo.com, Aug 2026) · sales +1.2%

Story as of 2026-10-16T09:58:22.614Z; price observation 2026-10-15.

Price needs cash profits to grow 2.8% a year for ten years

- 2025-08-19: Best Buy launches digital marketplace, doubling online product offerings ([investing.com](https://www.investing.com/news/company-news/best-buy-launches-digital-marketplace-doubling-online-product-offerings-93CH-4199483))

- 2026-02-24: Best Buy's Q4 Faces Downside Risks Following Soft Consumer Electronics Sales, Wedbush Says ([finance.yahoo.com](https://finance.yahoo.com/news/best-buy-apos-q4-faces-200516349.html))

- 2026-03-27: Best Buy (BBY) Climbs 4.6% on Higher Dividends ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/best-buy-bby-climbs-4-025033611.html))

- 2026-05-28: Best Buy Q1 Comps. Up 2%; Maintains FY27 Guidance; Stock Surges ([nasdaq.com](https://www.nasdaq.com/articles/best-buy-q1-comps-2-maintains-fy27-guidance-stock-surges))

- 2026-08-28: Best Buy's Comparable Sales Guidance Implies Growth Slow Down in Second Half, Wedbush Says ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/best-buy-apos-comparable-sales-145148288.html))

- 2026-09-11: BBY Raises FY27 Outlook as Ads and Marketplace Lift Profitability ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/bby-raises-fy27-outlook-ads-153000061.html))

### Sales · FY2026–2027

sales +1.2%; source https://www.sec.gov/Archives/edgar/data/764478/000076447826000009/bby-20260131.htm; observed 2026-03-18.

- FY2018: $42B 

- FY2019: $43B 

- FY2020: $44B 

- FY2021: $47B 

- FY2022: $52B 

- FY2023: $46B 

- FY2024: $43B 

- FY2025: $42B 

- FY2026: $42B 

- FY2027: $42B 

### Gross margin · FY2027

gross margin 22.7%; source https://www.sec.gov/Archives/edgar/data/764478/000076447826000009/bby-20260131.htm; observed 2026-03-18.

- FY2018: 23.4% 

- FY2019: 23.2% 

- FY2020: 23.0% 

- FY2021: 22.4% 

- FY2022: 22.5% 

- FY2023: 21.4% 

- FY2024: 22.1% 

- FY2025: 22.6% 

- FY2026: 22.5% 

- FY2027: 22.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty retail; annual sales are USD 41.7 billion.

- Source: https://www.sec.gov/Archives/edgar/data/764478/000076447826000009/bby-20260131.htm (filed 2026-03-18); FY2026: revenue 41691000000; grossProfit 9373000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BBY.US: 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. It also offers appliances, such as dishwashers, laundry, ovens, refrigerators, blenders, coffee makers, vacuums, and personal care; entertainment products consisting of drones, peripherals, gaming, toys, and virtual reality, as well as hardware and software, and augmented reality glasses and other software products; and other products, such as baby, food and beverage, luggage, and outdoor living products. In addition, the company provides delivery, installation, marketplace commissions, memberships, repair, set-up, technical support, health-related, and warranty-related services. It offers its products through stores and websites under the Best Buy, Best Buy Ads, Best Buy Business, Best Buy Essentials, Best Buy Health, Best Buy Marketplace, Geek Squad, Imagine That, Insignia, Lively, Jitterbug, My Best Buy, My Best Buy Memberships, Pacific Kitchen, Home, TechLiquidators, and Yardbird brand names, as well as domain names comprising bestbuy.com, lively.com, techliquidators.com, yardbird.com, bestbuy.ca, and techliquidators.ca. The company was formerly known as Sound of Music, Inc. Best Buy Co., Inc. was incorporated in 1966 and is headquartered in Richfield, Minnesota.

### Why customers stay

Margins ranged from 22.1% to 22.6% during 2024–26; it earns 38.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2024: grossProfit / revenue = 22.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2025: grossProfit / revenue = 22.6%.

- Source: https://www.sec.gov/Archives/edgar/data/764478/000076447826000009/bby-20260131.htm (filed 2026-03-18); FY2026: grossProfit / revenue = 22.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); 10-year return on capital observations [[2018,0.8502129169623847],[2019,0.8189578014150987],[2020,0.364641150128737],[2021,0.8620542512391351],[2022,0.9207264920884982],[2023,0.4048781155115763],[2024,0.2863369523517507],[2025,0.28284051468162325],[2026,0.29121200545328824],[2027,0.3147010024815312]]; median 0.3847596328201567. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 22% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/764478/000076447826000009/bby-20260131.htm (filed 2026-03-18); Gross margin observations: [[2021,0.22371038043248276],[2022,0.22487973570835185],[2023,0.21409132143937104]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 273 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2017: growth capex 0; upkeep 582000000; owner earnings 1300000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2018: growth capex 5000000; upkeep 683000000; owner earnings 1000000000. Growth capex / owner earnings = 0.005.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2019: growth capex 42283678.29331684; upkeep 776716321.7066832; owner earnings 1457283678.2933168. Growth capex / owner earnings = 0.02901540648752544.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2020: growth capex 0; upkeep 743000000; owner earnings 1610000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2021: growth capex 0; upkeep 713000000; owner earnings 1924000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2022: growth capex 0; upkeep 737000000; owner earnings 2586000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2023: growth capex 0; upkeep 930000000; owner earnings 1407000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2024: growth capex 0; upkeep 795000000; owner earnings 1369000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2025: growth capex 0; upkeep 706000000; owner earnings 1087000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/764478/000076447826000009/bby-20260131.htm (filed 2026-03-18); FY2026: growth capex 0; upkeep 704000000; owner earnings 1196000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); Dividend observations: [[2017,505000000],[2018,409000000],[2019,497000000],[2020,527000000],[2021,568000000],[2022,688000000],[2023,789000000],[2024,801000000],[2025,807000000],[2026,801000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/764478/000076447826000009/bby-20260131.htm (filed 2026-03-18); FY2026: cash repurchases 273000000 USD.

### What could break it

"Interruptions and other factors affecting our supply chain may adversely affect our business." (SEC filing, Mar 2026)

- Source: https://www.sec.gov/Archives/edgar/data/764478/000076447826000009/bby-20260131.htm (filed 2026-03-18); Interruptions and other factors affecting our supply chain may adversely affect our business.

### What the price says

The price assumes cash profits grow 2.8% yearly over ten years; actual growth was 8.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); Ten-year compound average after fade. Initial solved rate 0.026735802826367228. Price 94.17; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2016 owner earnings/share 2.5805531793555745 → FY2026 5.6388495992456384. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $38.91 per share

- 2016-11: $45.70 per share

- 2016-12: $42.67 per share

- 2017-01: $44.52 per share

- 2017-02: $44.13 per share

- 2017-03: $49.15 per share

- 2017-04: $51.81 per share

- 2017-05: $59.39 per share

- 2017-06: $57.33 per share

- 2017-07: $58.34 per share

- 2017-08: $54.26 per share

- 2017-09: $56.96 per share

- 2017-10: $55.98 per share

- 2017-11: $59.61 per share

- 2017-12: $68.47 per share

- 2018-01: $73.06 per share

- 2018-02: $72.44 per share

- 2018-03: $69.99 per share

- 2018-04: $76.53 per share

- 2018-05: $68.25 per share

- 2018-06: $74.58 per share

- 2018-07: $75.03 per share

- 2018-08: $79.56 per share

- 2018-09: $79.36 per share

- 2018-10: $70.16 per share

- 2018-11: $64.59 per share

- 2018-12: $52.96 per share

- 2019-01: $59.24 per share

- 2019-02: $68.84 per share

- 2019-03: $71.06 per share

- 2019-04: $74.41 per share

- 2019-05: $62.67 per share

- 2019-06: $69.73 per share

- 2019-07: $76.53 per share

- 2019-08: $63.65 per share

- 2019-09: $68.99 per share

- 2019-10: $71.83 per share

- 2019-11: $80.64 per share

- 2019-12: $87.80 per share

- 2020-01: $84.69 per share

- 2020-02: $75.65 per share

- 2020-03: $57.00 per share

- 2020-04: $76.73 per share

- 2020-05: $78.09 per share

- 2020-06: $87.27 per share

- 2020-07: $99.59 per share

- 2020-08: $110.91 per share

- 2020-09: $111.29 per share

- 2020-10: $111.55 per share

- 2020-11: $108.80 per share

- 2020-12: $99.79 per share

- 2021-01: $108.82 per share

- 2021-02: $100.35 per share

- 2021-03: $114.81 per share

- 2021-04: $116.27 per share

- 2021-05: $116.24 per share

- 2021-06: $114.98 per share

- 2021-07: $112.35 per share

- 2021-08: $116.51 per share

- 2021-09: $105.71 per share

- 2021-10: $122.24 per share

- 2021-11: $106.86 per share

- 2021-12: $101.60 per share

- 2022-01: $99.28 per share

- 2022-02: $96.64 per share

- 2022-03: $90.90 per share

- 2022-04: $89.93 per share

- 2022-05: $82.06 per share

- 2022-06: $65.19 per share

- 2022-07: $76.99 per share

- 2022-08: $70.69 per share

- 2022-09: $63.34 per share

- 2022-10: $68.41 per share

- 2022-11: $85.30 per share

- 2022-12: $80.21 per share

- 2023-01: $88.72 per share

- 2023-02: $83.11 per share

- 2023-03: $78.27 per share

- 2023-04: $74.52 per share

- 2023-05: $72.67 per share

- 2023-06: $81.95 per share

- 2023-07: $83.05 per share

- 2023-08: $76.45 per share

- 2023-09: $69.47 per share

- 2023-10: $66.82 per share

- 2023-11: $70.94 per share

- 2023-12: $78.28 per share

- 2024-01: $72.49 per share

- 2024-02: $80.88 per share

- 2024-03: $82.03 per share

- 2024-04: $73.64 per share

- 2024-05: $84.82 per share

- 2024-06: $84.29 per share

- 2024-07: $86.52 per share

- 2024-08: $100.40 per share

- 2024-09: $103.30 per share

- 2024-10: $90.43 per share

- 2024-11: $90.00 per share

- 2024-12: $85.80 per share

- 2025-01: $85.86 per share

- 2025-02: $89.91 per share

- 2025-03: $73.61 per share

- 2025-04: $66.69 per share

- 2025-05: $66.28 per share

- 2025-06: $67.13 per share

- 2025-07: $65.06 per share

- 2025-08: $73.64 per share

- 2025-09: $75.62 per share

- 2025-10: $82.14 per share

- 2025-11: $79.28 per share

- 2025-12: $66.93 per share

- 2026-01: $65.10 per share

- 2026-02: $61.97 per share

- 2026-03: $64.20 per share

- 2026-04: $60.49 per share

- 2026-05: $77.95 per share

- 2026-06: $75.88 per share

- 2026-07: $86.26 per share

- 2026-08: $80.15 per share

- 2026-09: $88.24 per share

- 2026-10: $94.17 per share

## Annual estimated value (USD per share)

- FY2017: low $40.28 per share, central $44.49 per share, high $50.10 per share

- FY2018: low $43.05 per share, central $47.96 per share, high $54.49 per share

- FY2019: low $58.82 per share, central $66.38 per share, high $76.44 per share

- FY2020: low $63.76 per share, central $71.85 per share, high $82.62 per share

- FY2021: low $84.05 per share, central $93.26 per share, high $105.51 per share

- FY2022: low $91.35 per share, central $102.90 per share, high $118.26 per share

- FY2023: low $86.92 per share, central $98.33 per share, high $113.51 per share

- FY2024: low $86.30 per share, central $98.00 per share, high $113.58 per share

- FY2025: low $69.48 per share, central $78.58 per share, high $90.70 per share

- FY2026: low $72.37 per share, central $81.90 per share, high $94.59 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:32:28.049Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/764478/000076447826000009/bby-20260131.htm); period 2026-01-31, filed 2026-03-18.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.