Best Buy Co., Inc.

BIT:1BBY Stock Report

Market Cap: €13.4b

Best Buy Valuation

Is 1BBY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

What is the Fair Price of 1BBY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: 1BBY (€65.56) is trading below our estimate of future cash flow value (€120.46)

Significantly Below Future Cash Flow Value: 1BBY is trading below future cash flow value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1BBY?

Key metric: As 1BBY is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1BBY. This is calculated by dividing 1BBY's market cap by their current earnings.
What is 1BBY's PE Ratio?
PE Ratio13.5x
EarningsUS$1.14b
Market CapUS$15.41b

Price to Earnings Ratio vs Peers

How does 1BBY's PE Ratio compare to its peers?

The above table shows the PE ratio for 1BBY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.4x
GME GameStop
12.7xn/aUS$9.7b
JBH JB Hi-Fi
17.8x3.18%AU$8.6b
MWG Mobile World Investment
14.1x13.54%₫116.2t
9831 Yamada Holdings
29.1x21.38%JP¥441.1b
1BBY Best Buy
13.5x7.86%€15.4b

Price-To-Earnings vs Peers: 1BBY is good value based on its Price-To-Earnings Ratio (13.5x) compared to the peer average (18.4x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does 1BBY's PE Ratio compare vs other companies in the European Specialty Retail Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1BBY 13.5xIndustry Avg. 15.9xNo. of Companies12PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1BBY is good value based on its Price-To-Earnings Ratio (13.5x) compared to the European Specialty Retail industry average (15.9x).

Price to Earnings Ratio vs Fair Ratio

What is 1BBY'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.

1BBY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.5x
Fair PE Ratio19.3x

Price-To-Earnings vs Fair Ratio: 1BBY is good value based on its Price-To-Earnings Ratio (13.5x) 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 1BBY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€65.56
€68.43
+4.38%
11.69%€78.31€52.21n/a20
Jun ’27€65.42
€66.74
+2.02%
11.71%€77.41€51.61n/a20
May ’27€51.20
€62.04
+21.17%
10.94%€77.01€50.49n/a20
Apr ’27€55.32
€64.66
+16.88%
9.24%€78.53€52.36n/a20
Mar ’27€52.53
€65.77
+25.20%
12.06%€80.36€50.75n/a20
Feb ’27€54.27
€70.99
+30.80%
11.65%€85.31€51.70n/a21
Jan ’27€57.50
€71.30
+24.01%
11.20%€84.47€51.19n/a21
Dec ’26€67.26
€72.48
+7.76%
10.94%€85.28€51.68n/a21
Nov ’26€71.73
€69.24
-3.46%
11.41%€81.50€51.47n/a21
Oct ’26€65.28
€67.26
+3.04%
11.17%€80.11€50.60n/a21
Sep ’26€61.10
€67.78
+10.94%
11.59%€81.22€51.29n/a21
Aug ’26€55.71
€67.74
+21.60%
12.91%€81.96€54.35n/a21
Jul ’26€58.96
€69.04
+17.10%
12.72%€82.74€54.87n/a22
Jun ’26€58.44
€70.21
+20.13%
12.37%€83.68€55.49€65.4222
May ’26€75.00
€77.77
+3.70%
12.31%€96.71€61.54€51.2023
Apr ’26€75.00
€83.04
+10.73%
10.60%€101.62€69.29€55.3223
Mar ’26€83.93
€94.26
+12.31%
10.82%€112.81€77.14€52.5323
Feb ’26€81.00
€93.90
+15.92%
10.72%€112.32€76.80€54.2723
Jan ’26€81.58
€95.05
+16.51%
10.48%€112.89€77.19€57.5023
Dec ’25€82.28
€94.05
+14.30%
10.01%€110.86€75.80€67.2623
Nov ’25€81.64
€95.44
+16.90%
10.68%€112.98€73.48€71.7323
Oct ’25€88.97
€93.06
+4.60%
10.68%€110.16€71.65€65.2823
Sep ’25€88.46
€93.35
+5.53%
11.83%€111.29€72.38€61.1022
Aug ’25€68.00
€82.70
+21.61%
9.71%€97.45€64.35€55.7122
Jul ’25€63.00
€83.53
+32.59%
9.76%€98.72€65.19€58.9622
Jun ’25€69.43
€79.83
+14.98%
9.81%€93.10€61.76€58.4422
€70.54
Fair Value
7.1% undervalued intrinsic discount
20
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/06/18 22:22
End of Day Share Price 2026/06/18 00:00
Earnings2026/05/02
Annual Earnings2026/01/31

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.

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 Github.

Analyst Sources

Best Buy Co., Inc. is covered by 45 analysts. 22 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
Michael LasserBarclays
Seth SigmanBarclays