Intrinsic value of Best Buy - BBY

Previous Close

$65.32

  Intrinsic Value

$79.65

stock screener

  Rating & Target

buy

+22%

Previous close

$65.32

 
Intrinsic value

$79.65

 
Up/down potential

+22%

 
Rating

buy

We calculate the intrinsic value of BBY stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 19.5

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -0.32
  4.80
  4.82
  4.84
  4.85
  4.87
  4.88
  4.89
  4.90
  4.91
  4.92
  4.93
  4.94
  4.94
  4.95
  4.95
  4.96
  4.96
  4.97
  4.97
  4.97
  4.98
  4.98
  4.98
  4.98
  4.98
  4.99
  4.99
  4.99
  4.99
  4.99
Revenue, $m
  39,403
  41,294
  43,285
  45,379
  47,582
  49,898
  52,334
  54,895
  57,588
  60,417
  63,391
  66,517
  69,801
  73,252
  76,877
  80,686
  84,687
  88,890
  93,304
  97,942
  102,812
  107,928
  113,301
  118,943
  124,869
  131,093
  137,629
  144,492
  151,700
  159,269
  167,218
Variable operating expenses, $m
 
  39,847
  41,766
  43,784
  45,907
  48,141
  50,489
  52,957
  55,552
  58,280
  61,147
  64,117
  67,283
  70,609
  74,103
  77,775
  81,631
  85,683
  89,938
  94,408
  99,103
  104,034
  109,213
  114,652
  120,364
  126,363
  132,663
  139,279
  146,227
  153,523
  161,185
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  37,549
  39,847
  41,766
  43,784
  45,907
  48,141
  50,489
  52,957
  55,552
  58,280
  61,147
  64,117
  67,283
  70,609
  74,103
  77,775
  81,631
  85,683
  89,938
  94,408
  99,103
  104,034
  109,213
  114,652
  120,364
  126,363
  132,663
  139,279
  146,227
  153,523
  161,185
Operating income, $m
  1,854
  1,447
  1,519
  1,595
  1,674
  1,758
  1,846
  1,938
  2,035
  2,137
  2,245
  2,400
  2,518
  2,643
  2,774
  2,911
  3,055
  3,207
  3,366
  3,534
  3,709
  3,894
  4,088
  4,291
  4,505
  4,730
  4,965
  5,213
  5,473
  5,746
  6,033
EBITDA, $m
  2,508
  1,961
  2,055
  2,155
  2,259
  2,369
  2,485
  2,606
  2,734
  2,869
  3,010
  3,158
  3,314
  3,478
  3,650
  3,831
  4,021
  4,220
  4,430
  4,650
  4,881
  5,124
  5,379
  5,647
  5,929
  6,224
  6,534
  6,860
  7,203
  7,562
  7,939
Interest expense (income), $m
  76
  65
  78
  100
  123
  148
  174
  201
  229
  259
  290
  324
  358
  395
  433
  474
  516
  560
  607
  656
  708
  762
  819
  879
  941
  1,007
  1,076
  1,149
  1,225
  1,306
  1,390
Earnings before tax, $m
  1,816
  1,383
  1,441
  1,495
  1,551
  1,610
  1,672
  1,737
  1,806
  1,878
  1,954
  2,076
  2,160
  2,248
  2,340
  2,438
  2,540
  2,647
  2,759
  2,877
  3,002
  3,132
  3,269
  3,413
  3,564
  3,722
  3,889
  4,064
  4,248
  4,441
  4,643
Tax expense, $m
  609
  373
  389
  404
  419
  435
  451
  469
  488
  507
  528
  561
  583
  607
  632
  658
  686
  715
  745
  777
  810
  846
  883
  921
  962
  1,005
  1,050
  1,097
  1,147
  1,199
  1,254
Net income, $m
  1,228
  1,009
  1,052
  1,091
  1,132
  1,175
  1,221
  1,268
  1,318
  1,371
  1,426
  1,516
  1,577
  1,641
  1,708
  1,779
  1,854
  1,932
  2,014
  2,101
  2,191
  2,286
  2,386
  2,491
  2,602
  2,717
  2,839
  2,967
  3,101
  3,242
  3,390

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  3,921
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  13,856
  10,412
  10,914
  11,442
  11,997
  12,582
  13,196
  13,841
  14,520
  15,234
  15,984
  16,772
  17,600
  18,470
  19,384
  20,344
  21,353
  22,413
  23,526
  24,695
  25,923
  27,213
  28,568
  29,991
  31,485
  33,054
  34,702
  36,433
  38,250
  40,159
  42,163
Adjusted assets (=assets-cash), $m
  9,935
  10,412
  10,914
  11,442
  11,997
  12,582
  13,196
  13,841
  14,520
  15,234
  15,984
  16,772
  17,600
  18,470
  19,384
  20,344
  21,353
  22,413
  23,526
  24,695
  25,923
  27,213
  28,568
  29,991
  31,485
  33,054
  34,702
  36,433
  38,250
  40,159
  42,163
Revenue / Adjusted assets
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
  3.966
Average production assets, $m
  2,246
  2,354
  2,467
  2,587
  2,712
  2,844
  2,983
  3,129
  3,282
  3,444
  3,613
  3,791
  3,979
  4,175
  4,382
  4,599
  4,827
  5,067
  5,318
  5,583
  5,860
  6,152
  6,458
  6,780
  7,118
  7,472
  7,845
  8,236
  8,647
  9,078
  9,531
Working capital, $m
  3,394
  -496
  -519
  -545
  -571
  -599
  -628
  -659
  -691
  -725
  -761
  -798
  -838
  -879
  -923
  -968
  -1,016
  -1,067
  -1,120
  -1,175
  -1,234
  -1,295
  -1,360
  -1,427
  -1,498
  -1,573
  -1,652
  -1,734
  -1,820
  -1,911
  -2,007
Total debt, $m
  1,365
  1,589
  2,041
  2,516
  3,016
  3,541
  4,094
  4,675
  5,286
  5,928
  6,603
  7,313
  8,058
  8,841
  9,664
  10,528
  11,436
  12,390
  13,391
  14,444
  15,549
  16,710
  17,929
  19,210
  20,554
  21,967
  23,450
  25,007
  26,643
  28,361
  30,165
Total liabilities, $m
  9,147
  9,371
  9,823
  10,298
  10,798
  11,323
  11,876
  12,457
  13,068
  13,710
  14,385
  15,095
  15,840
  16,623
  17,446
  18,310
  19,218
  20,172
  21,173
  22,226
  23,331
  24,492
  25,711
  26,992
  28,336
  29,749
  31,232
  32,789
  34,425
  36,143
  37,947
Total equity, $m
  4,709
  1,041
  1,091
  1,144
  1,200
  1,258
  1,320
  1,384
  1,452
  1,523
  1,598
  1,677
  1,760
  1,847
  1,938
  2,034
  2,135
  2,241
  2,353
  2,470
  2,592
  2,721
  2,857
  2,999
  3,148
  3,305
  3,470
  3,643
  3,825
  4,016
  4,216
Total liabilities and equity, $m
  13,856
  10,412
  10,914
  11,442
  11,998
  12,581
  13,196
  13,841
  14,520
  15,233
  15,983
  16,772
  17,600
  18,470
  19,384
  20,344
  21,353
  22,413
  23,526
  24,696
  25,923
  27,213
  28,568
  29,991
  31,484
  33,054
  34,702
  36,432
  38,250
  40,159
  42,163
Debt-to-equity ratio
  0.290
  1.530
  1.870
  2.200
  2.510
  2.810
  3.100
  3.380
  3.640
  3.890
  4.130
  4.360
  4.580
  4.790
  4.990
  5.170
  5.360
  5.530
  5.690
  5.850
  6.000
  6.140
  6.280
  6.410
  6.530
  6.650
  6.760
  6.860
  6.970
  7.060
  7.150
Adjusted equity ratio
  0.079
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,228
  1,009
  1,052
  1,091
  1,132
  1,175
  1,221
  1,268
  1,318
  1,371
  1,426
  1,516
  1,577
  1,641
  1,708
  1,779
  1,854
  1,932
  2,014
  2,101
  2,191
  2,286
  2,386
  2,491
  2,602
  2,717
  2,839
  2,967
  3,101
  3,242
  3,390
Depreciation, amort., depletion, $m
  654
  513
  536
  560
  585
  611
  639
  668
  699
  731
  765
  758
  796
  835
  876
  920
  965
  1,013
  1,064
  1,117
  1,172
  1,230
  1,292
  1,356
  1,424
  1,494
  1,569
  1,647
  1,729
  1,816
  1,906
Funds from operations, $m
  2,891
  1,523
  1,588
  1,651
  1,717
  1,787
  1,860
  1,937
  2,017
  2,102
  2,192
  2,274
  2,373
  2,476
  2,585
  2,699
  2,819
  2,945
  3,078
  3,217
  3,363
  3,517
  3,678
  3,847
  4,025
  4,212
  4,408
  4,614
  4,830
  5,057
  5,296
Change in working capital, $m
  346
  -23
  -24
  -25
  -26
  -28
  -29
  -31
  -32
  -34
  -36
  -38
  -39
  -41
  -44
  -46
  -48
  -50
  -53
  -56
  -58
  -61
  -64
  -68
  -71
  -75
  -78
  -82
  -86
  -91
  -95
Cash from operations, $m
  2,545
  1,545
  1,612
  1,676
  1,744
  1,814
  1,889
  1,967
  2,050
  2,136
  2,227
  2,311
  2,412
  2,517
  2,628
  2,745
  2,867
  2,996
  3,131
  3,273
  3,422
  3,578
  3,742
  3,915
  4,096
  4,287
  4,486
  4,696
  4,917
  5,148
  5,391
Maintenance CAPEX, $m
  0
  -449
  -471
  -493
  -517
  -542
  -569
  -597
  -626
  -656
  -689
  -723
  -758
  -796
  -835
  -876
  -920
  -965
  -1,013
  -1,064
  -1,117
  -1,172
  -1,230
  -1,292
  -1,356
  -1,424
  -1,494
  -1,569
  -1,647
  -1,729
  -1,816
New CAPEX, $m
  -582
  -108
  -113
  -119
  -126
  -132
  -139
  -146
  -153
  -161
  -170
  -178
  -187
  -197
  -207
  -217
  -228
  -240
  -252
  -264
  -278
  -292
  -306
  -322
  -338
  -355
  -373
  -391
  -411
  -431
  -453
Cash from investing activities, $m
  -887
  -557
  -584
  -612
  -643
  -674
  -708
  -743
  -779
  -817
  -859
  -901
  -945
  -993
  -1,042
  -1,093
  -1,148
  -1,205
  -1,265
  -1,328
  -1,395
  -1,464
  -1,536
  -1,614
  -1,694
  -1,779
  -1,867
  -1,960
  -2,058
  -2,160
  -2,269
Free cash flow, $m
  1,658
  988
  1,028
  1,063
  1,101
  1,140
  1,181
  1,225
  1,270
  1,319
  1,369
  1,411
  1,466
  1,525
  1,587
  1,651
  1,719
  1,791
  1,866
  1,945
  2,027
  2,114
  2,206
  2,302
  2,402
  2,508
  2,619
  2,736
  2,859
  2,987
  3,123
Issuance/(repayment) of debt, $m
  -394
  268
  452
  475
  500
  526
  553
  581
  611
  642
  675
  709
  745
  783
  823
  864
  908
  954
  1,002
  1,052
  1,105
  1,161
  1,219
  1,280
  1,345
  1,412
  1,483
  1,558
  1,636
  1,718
  1,804
Issuance/(repurchase) of shares, $m
  -527
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -899
  268
  452
  475
  500
  526
  553
  581
  611
  642
  675
  709
  745
  783
  823
  864
  908
  954
  1,002
  1,052
  1,105
  1,161
  1,219
  1,280
  1,345
  1,412
  1,483
  1,558
  1,636
  1,718
  1,804
Total cash flow (excl. dividends), $m
  769
  1,256
  1,479
  1,538
  1,601
  1,666
  1,734
  1,806
  1,881
  1,961
  2,044
  2,120
  2,212
  2,308
  2,409
  2,516
  2,627
  2,745
  2,868
  2,997
  3,133
  3,275
  3,425
  3,582
  3,747
  3,921
  4,103
  4,294
  4,494
  4,705
  4,926
Retained Cash Flow (-), $m
  -331
  -209
  -50
  -53
  -56
  -58
  -61
  -65
  -68
  -71
  -75
  -79
  -83
  -87
  -91
  -96
  -101
  -106
  -111
  -117
  -123
  -129
  -135
  -142
  -149
  -157
  -165
  -173
  -182
  -191
  -200
Prev. year cash balance distribution, $m
 
  3,877
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  4,924
  1,429
  1,486
  1,545
  1,607
  1,673
  1,741
  1,814
  1,889
  1,969
  2,041
  2,129
  2,221
  2,318
  2,420
  2,526
  2,639
  2,756
  2,880
  3,010
  3,146
  3,290
  3,440
  3,598
  3,764
  3,938
  4,121
  4,313
  4,514
  4,726
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  4,721
  1,308
  1,293
  1,272
  1,246
  1,214
  1,176
  1,134
  1,085
  1,032
  969
  908
  845
  778
  710
  642
  574
  508
  443
  382
  325
  273
  225
  183
  146
  115
  88
  67
  49
  36
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Best Buy Co., Inc. is a provider of technology products, services and solutions. The Company offers products and services to the customers visiting its stores, engaging with Geek Squad agents, or using its Websites or mobile applications. It has operations in the United States, Canada and Mexico. The Company operates through two segments: Domestic and International. The Domestic segment consists of the operations in all states, districts and territories of the United States, under various brand names, including Best Buy, bestbuy.com, Best Buy Mobile, Best Buy Direct, Best Buy Express, Geek Squad, Magnolia Home Theater, and Pacific Kitchen and Home. The International segment consists of all operations in Canada and Mexico under the brand names, Best Buy, bestbuy.com.ca, bestbuy.com.mx, Best Buy Express, Best Buy Mobile and Geek Squad. As of December 31, 2016, the Company operated 1,200 large-format and 400 small-format stores throughout its Domestic and International segments.

FINANCIAL RATIOS  of  Best Buy (BBY)

Valuation Ratios
P/E Ratio 16.5
Price to Sales 0.5
Price to Book 4.3
Price to Tangible Book
Price to Cash Flow 8
Price to Free Cash Flow 10.4
Growth Rates
Sales Growth Rate -0.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -10.3%
Cap. Spend. - 3 Yr. Gr. Rate 1.2%
Financial Strength
Quick Ratio 89
Current Ratio 0.1
LT Debt to Equity 28.1%
Total Debt to Equity 29%
Interest Coverage 25
Management Effectiveness
Return On Assets 9.3%
Ret/ On Assets - 3 Yr. Avg. 8.3%
Return On Total Capital 20.2%
Ret/ On T. Cap. - 3 Yr. Avg. 18.1%
Return On Equity 27%
Return On Equity - 3 Yr. Avg. 24.5%
Asset Turnover 2.9
Profitability Ratios
Gross Margin 24%
Gross Margin - 3 Yr. Avg. 23.2%
EBITDA Margin 6.5%
EBITDA Margin - 3 Yr. Avg. 5.6%
Operating Margin 4.7%
Oper. Margin - 3 Yr. Avg. 3.9%
Pre-Tax Margin 4.6%
Pre-Tax Margin - 3 Yr. Avg. 3.8%
Net Profit Margin 3.1%
Net Profit Margin - 3 Yr. Avg. 2.8%
Effective Tax Rate 33.5%
Eff/ Tax Rate - 3 Yr. Avg. 27.4%
Payout Ratio 41.1%

BBY stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BBY stock intrinsic value calculation we used $39403 million for the last fiscal year's total revenue generated by Best Buy. The default revenue input number comes from 2017 income statement of Best Buy. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our BBY stock valuation model: a) initial revenue growth rate of 4.8% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for BBY is calculated based on our internal credit rating of Best Buy, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Best Buy.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of BBY stock the variable cost ratio is equal to 96.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for BBY stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.9% for Best Buy.

Corporate tax rate of 27% is the nominal tax rate for Best Buy. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the BBY stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for BBY are equal to 5.7%.

Life of production assets of 4.1 years is the average useful life of capital assets used in Best Buy operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for BBY is equal to -1.2%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $4709 million for Best Buy - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 299.122 million for Best Buy is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Best Buy at the current share price and the inputted number of shares is $19.5 billion.

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COMPANY NEWS

▶ 2 Reasons to Consider Best Buy Stock   [08:15AM  Motley Fool]
▶ [$$] Best Buy Founder Continues Big Stock Sales   [Dec-14-17 06:00PM  Barrons.com]
▶ 3 Stocks to Help Baby Boomers to Reach Their Goals   [Dec-13-17 09:46AM  Motley Fool]
▶ Why Best Buy Co Inc (BBY) Could Be A Buy   [Dec-11-17 06:28PM  Simply Wall St.]
▶ Best Buy Hits 80-Plus Relative Strength Rating Benchmark   [03:00AM  Investor's Business Daily]
▶ [$$] Best Buy Founder Schulze Strikes Again   [Dec-06-17 05:33AM  Barrons.com]
▶ 3 Things Big-Box Retail Investors Need to Know   [Dec-05-17 06:17PM  Motley Fool]
▶ Stocks With Rising Relative Price Strength: Best Buy   [03:00AM  Investor's Business Daily]
▶ There But for the Grace of Amazon: Best Buy   [Nov-29-17 03:37PM  Barrons.com]
▶ Cyber Monday: A Deal's a Deal   [11:28AM  Barrons.com]
▶ Cyber Monday sales hit record highs   [11:20AM  Yahoo Finance Video]
▶ The Best Cyber Monday Best Buy Deals for 2017   [Nov-27-17 11:50PM  Kiplinger]
▶ Amazon, Google, Wal-Mart Fight For Your Smart Home   [08:23AM  Investor's Business Daily]
▶ Black Friday Stories From Hell   [Nov-26-17 01:20PM  TheStreet.com]
▶ Retailers work to attract shoppers to stores on Black Friday   [Nov-24-17 08:40PM  Associated Press]
▶ Retailers Push TVs, Smart Speakers, Apple Devices For Holidays   [01:54PM  Investor's Business Daily]
▶ Can any retailer take on Amazon?   [01:18PM  CNBC Videos]
▶ Raw: Best Buy CEO Greets Thanksgiving Customers   [04:49AM  Associated Press Videos]
▶ Top Retail Stocks to Watch on Black Friday   [11:10AM  Investopedia]
▶ Retailers Take on Amazon for Black Friday   [09:02PM  Investopedia]
▶ Black Friday: Kohls Hours 2017   [03:21PM  InvestorPlace]
▶ Black Friday: Best Buy Hours 2017   [02:51PM  InvestorPlace]
▶ Barbie at Best Buy: Retailers shake up their holiday tactics   [10:37AM  American City Business Journals]
▶ Here's why Best Buy is selling Mattel's Barbie   [09:20AM  American City Business Journals]
▶ What Affected Best Buys Fiscal 3Q18 Revenue?   [09:03AM  Market Realist]
Financial statements of BBY
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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