Best Buy Co., Inc.

LSE:0R18 Stock Report

Market Cap: US$18.3b

Best Buy Valuation

Is 0R18 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0R18 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0R18 ($85.28) is trading below our estimate of fair value ($239.79)

Significantly Below Fair Value: 0R18 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0R18?

Key metric: As 0R18 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0R18. This is calculated by dividing 0R18's market cap by their current earnings.
What is 0R18's PE Ratio?
PE Ratio14.4x
EarningsUS$1.27b
Market CapUS$18.29b

Price to Earnings Ratio vs Peers

How does 0R18's PE Ratio compare to its peers?

The above table shows the PE ratio for 0R18 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.2x
CURY Currys
18.2x20.9%UK£1.0b
AO. AO World
23.1x20.2%UK£608.7m
KGF Kingfisher
13.1x9.5%UK£4.5b
NXT NEXT
14.4x2.6%UK£11.6b
0R18 Best Buy
14.4x4.7%US$18.3b

Price-To-Earnings vs Peers: 0R18 is good value based on its Price-To-Earnings Ratio (14.4x) compared to the peer average (17.2x).

Price to Earnings Ratio vs Industry

How does 0R18's PE Ratio compare vs other companies in the GB Specialty Retail Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
WRKS TheWorks.co.uk
1.9xn/aUS$15.31m
No more companies available in this PE range
0R18 14.4xIndustry Avg. 14.2xNo. of Companies4PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0R18 is expensive based on its Price-To-Earnings Ratio (14.4x) compared to the UK Specialty Retail industry average (14.2x).

Price to Earnings Ratio vs Fair Ratio

What is 0R18's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0R18 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.4x
Fair PE Ratio19.3x

Price-To-Earnings vs Fair Ratio: 0R18 is good value based on its Price-To-Earnings Ratio (14.4x) compared to the estimated Fair Price-To-Earnings Ratio (19.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0R18 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$85.28
US$98.50
+15.5%
10.5%US$117.00US$80.00n/a23
Dec ’25US$90.00
US$99.26
+10.3%
10.0%US$117.00US$80.00n/a23
Nov ’25US$91.07
US$103.91
+14.1%
10.7%US$123.00US$80.00n/a23
Oct ’25US$101.80
US$103.91
+2.1%
10.7%US$123.00US$80.00n/a23
Sep ’25US$99.55
US$103.18
+3.6%
11.8%US$123.00US$80.00n/a22
Aug ’25US$84.66
US$89.96
+6.3%
9.7%US$106.00US$70.00n/a22
Jul ’25US$82.37
US$89.69
+8.9%
9.8%US$106.00US$70.00n/a22
Jun ’25US$83.35
US$86.60
+3.9%
9.8%US$101.00US$67.00n/a22
May ’25US$71.87
US$86.11
+19.8%
7.9%US$101.00US$70.00n/a23
Apr ’25US$81.84
US$86.15
+5.3%
8.0%US$101.00US$70.00n/a23
Mar ’25US$78.60
US$84.55
+7.6%
8.3%US$96.00US$68.00n/a22
Feb ’25US$74.23
US$77.15
+3.9%
10.8%US$92.00US$60.00n/a22
Jan ’25US$78.24
US$76.19
-2.6%
10.9%US$92.00US$60.00n/a22
Dec ’24US$73.12
US$75.05
+2.6%
10.5%US$92.00US$60.00US$90.0022
Nov ’24US$65.38
US$83.05
+27.0%
10.6%US$110.00US$70.00US$91.0722
Oct ’24US$68.99
US$83.51
+21.1%
9.8%US$110.00US$70.00US$101.8022
Sep ’24US$74.79
US$83.40
+11.5%
9.8%US$110.00US$70.00US$99.5523
Aug ’24US$82.55
US$80.61
-2.3%
12.8%US$110.00US$62.00US$84.6623
Jul ’24US$82.11
US$80.61
-1.8%
12.8%US$110.00US$62.00US$82.3723
May ’24US$74.15
US$84.46
+13.9%
11.5%US$110.00US$62.00US$71.8722
Apr ’24US$77.26
US$84.69
+9.6%
11.4%US$110.00US$62.00US$81.8422
Mar ’24US$82.96
US$85.28
+2.8%
11.3%US$110.00US$69.00US$78.6022
Feb ’24US$87.52
US$85.05
-2.8%
11.7%US$110.00US$69.00US$74.2321
Jan ’24US$80.05
US$85.62
+7.0%
11.4%US$110.00US$69.00US$78.2421
Dec ’23US$86.57
US$83.78
-3.2%
13.3%US$110.00US$59.00US$73.1220

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 23:04
End of Day Share Price 2024/12/20 00:00
Earnings2024/11/02
Annual Earnings2024/02/03

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Best Buy Co., Inc. is covered by 57 analysts. 26 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Christopher GrajaArgus Research Company
Fabrizio SpagnaAxia Financial Research
Ishan MajumdarBaptista Research