Intrinsic value of Best Buy - BBY

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$55.18

  Intrinsic Value

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  Value-price divergence*

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*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

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 16.6

 

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
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  39,403
  40,319
  41,246
  42,306
  43,496
  44,815
  46,261
  47,837
  49,542
  51,380
  53,352
  55,461
  57,712
  60,109
  62,656
  65,358
  68,223
  71,255
  74,461
  77,849
  81,426
  85,200
  89,180
  93,376
  97,796
  102,452
  107,354
  112,514
  117,943
  123,655
  129,663
Variable operating expenses, $m
 
  36,608
  37,449
  38,411
  39,490
  40,686
  41,998
  43,427
  44,974
  46,640
  48,428
  50,299
  52,340
  54,514
  56,824
  59,275
  61,873
  64,623
  67,530
  70,603
  73,847
  77,270
  80,880
  84,685
  88,694
  92,916
  97,362
  102,041
  106,965
  112,146
  117,595
Fixed operating expenses, $m
 
  2,395
  2,455
  2,517
  2,580
  2,644
  2,710
  2,778
  2,847
  2,919
  2,992
  3,066
  3,143
  3,222
  3,302
  3,385
  3,469
  3,556
  3,645
  3,736
  3,829
  3,925
  4,023
  4,124
  4,227
  4,333
  4,441
  4,552
  4,666
  4,782
  4,902
Total operating expenses, $m
  37,549
  39,003
  39,904
  40,928
  42,070
  43,330
  44,708
  46,205
  47,821
  49,559
  51,420
  53,365
  55,483
  57,736
  60,126
  62,660
  65,342
  68,179
  71,175
  74,339
  77,676
  81,195
  84,903
  88,809
  92,921
  97,249
  101,803
  106,593
  111,631
  116,928
  122,497
Operating income, $m
  1,854
  1,315
  1,341
  1,378
  1,426
  1,485
  1,553
  1,632
  1,721
  1,821
  1,932
  2,096
  2,229
  2,373
  2,530
  2,699
  2,881
  3,076
  3,286
  3,510
  3,749
  4,005
  4,277
  4,567
  4,875
  5,203
  5,551
  5,920
  6,312
  6,727
  7,166
EBITDA, $m
  2,508
  1,817
  1,854
  1,903
  1,965
  2,038
  2,123
  2,220
  2,329
  2,449
  2,582
  2,728
  2,886
  3,058
  3,244
  3,444
  3,658
  3,888
  4,134
  4,397
  4,678
  4,976
  5,294
  5,632
  5,990
  6,371
  6,775
  7,203
  7,656
  8,136
  8,645
Interest expense (income), $m
  76
  62
  70
  79
  90
  102
  115
  130
  146
  163
  182
  202
  224
  246
  271
  297
  324
  353
  384
  417
  451
  488
  526
  567
  609
  654
  702
  752
  804
  859
  917
Earnings before tax, $m
  1,816
  1,253
  1,272
  1,299
  1,337
  1,383
  1,438
  1,502
  1,575
  1,658
  1,750
  1,894
  2,005
  2,127
  2,259
  2,402
  2,556
  2,723
  2,901
  3,093
  3,298
  3,517
  3,751
  4,000
  4,266
  4,549
  4,849
  5,169
  5,508
  5,867
  6,249
Tax expense, $m
  609
  338
  343
  351
  361
  373
  388
  406
  425
  448
  472
  511
  541
  574
  610
  648
  690
  735
  783
  835
  890
  950
  1,013
  1,080
  1,152
  1,228
  1,309
  1,396
  1,487
  1,584
  1,687
Net income, $m
  1,228
  915
  928
  949
  976
  1,009
  1,050
  1,096
  1,150
  1,210
  1,277
  1,382
  1,464
  1,552
  1,649
  1,753
  1,866
  1,987
  2,118
  2,258
  2,407
  2,567
  2,738
  2,920
  3,114
  3,321
  3,540
  3,773
  4,021
  4,283
  4,562

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
  10,443
  10,683
  10,957
  11,265
  11,607
  11,982
  12,390
  12,832
  13,307
  13,818
  14,364
  14,947
  15,568
  16,228
  16,928
  17,670
  18,455
  19,285
  20,163
  21,089
  22,067
  23,098
  24,184
  25,329
  26,535
  27,805
  29,141
  30,547
  32,027
  33,583
Adjusted assets (=assets-cash), $m
  9,935
  10,443
  10,683
  10,957
  11,265
  11,607
  11,982
  12,390
  12,832
  13,307
  13,818
  14,364
  14,947
  15,568
  16,228
  16,928
  17,670
  18,455
  19,285
  20,163
  21,089
  22,067
  23,098
  24,184
  25,329
  26,535
  27,805
  29,141
  30,547
  32,027
  33,583
Revenue / Adjusted assets
  3.966
  3.861
  3.861
  3.861
  3.861
  3.861
  3.861
  3.861
  3.861
  3.861
  3.861
  3.861
  3.861
  3.861
  3.861
  3.861
  3.861
  3.861
  3.861
  3.861
  3.861
  3.861
  3.861
  3.861
  3.861
  3.861
  3.861
  3.861
  3.861
  3.861
  3.861
Average production assets, $m
  2,246
  2,298
  2,351
  2,411
  2,479
  2,554
  2,637
  2,727
  2,824
  2,929
  3,041
  3,161
  3,290
  3,426
  3,571
  3,725
  3,889
  4,062
  4,244
  4,437
  4,641
  4,856
  5,083
  5,322
  5,574
  5,840
  6,119
  6,413
  6,723
  7,048
  7,391
Working capital, $m
  3,394
  81
  82
  85
  87
  90
  93
  96
  99
  103
  107
  111
  115
  120
  125
  131
  136
  143
  149
  156
  163
  170
  178
  187
  196
  205
  215
  225
  236
  247
  259
Total debt, $m
  1,365
  1,511
  1,716
  1,950
  2,214
  2,505
  2,825
  3,174
  3,551
  3,957
  4,394
  4,860
  5,358
  5,888
  6,452
  7,049
  7,683
  8,354
  9,063
  9,812
  10,603
  11,438
  12,318
  13,246
  14,224
  15,254
  16,338
  17,479
  18,680
  19,944
  21,273
Total liabilities, $m
  9,147
  8,918
  9,123
  9,357
  9,621
  9,912
  10,232
  10,581
  10,958
  11,364
  11,801
  12,267
  12,765
  13,295
  13,859
  14,456
  15,090
  15,761
  16,470
  17,219
  18,010
  18,845
  19,725
  20,653
  21,631
  22,661
  23,745
  24,886
  26,087
  27,351
  28,680
Total equity, $m
  4,709
  1,525
  1,560
  1,600
  1,645
  1,695
  1,749
  1,809
  1,873
  1,943
  2,017
  2,097
  2,182
  2,273
  2,369
  2,471
  2,580
  2,694
  2,816
  2,944
  3,079
  3,222
  3,372
  3,531
  3,698
  3,874
  4,059
  4,255
  4,460
  4,676
  4,903
Total liabilities and equity, $m
  13,856
  10,443
  10,683
  10,957
  11,266
  11,607
  11,981
  12,390
  12,831
  13,307
  13,818
  14,364
  14,947
  15,568
  16,228
  16,927
  17,670
  18,455
  19,286
  20,163
  21,089
  22,067
  23,097
  24,184
  25,329
  26,535
  27,804
  29,141
  30,547
  32,027
  33,583
Debt-to-equity ratio
  0.290
  0.990
  1.100
  1.220
  1.350
  1.480
  1.620
  1.750
  1.900
  2.040
  2.180
  2.320
  2.460
  2.590
  2.720
  2.850
  2.980
  3.100
  3.220
  3.330
  3.440
  3.550
  3.650
  3.750
  3.850
  3.940
  4.020
  4.110
  4.190
  4.270
  4.340
Adjusted equity ratio
  0.079
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,228
  915
  928
  949
  976
  1,009
  1,050
  1,096
  1,150
  1,210
  1,277
  1,382
  1,464
  1,552
  1,649
  1,753
  1,866
  1,987
  2,118
  2,258
  2,407
  2,567
  2,738
  2,920
  3,114
  3,321
  3,540
  3,773
  4,021
  4,283
  4,562
Depreciation, amort., depletion, $m
  654
  502
  513
  525
  538
  553
  570
  588
  607
  628
  651
  632
  658
  685
  714
  745
  778
  812
  849
  887
  928
  971
  1,017
  1,064
  1,115
  1,168
  1,224
  1,283
  1,345
  1,410
  1,478
Funds from operations, $m
  2,891
  1,417
  1,441
  1,473
  1,514
  1,563
  1,620
  1,684
  1,757
  1,838
  1,928
  2,015
  2,122
  2,238
  2,363
  2,498
  2,644
  2,800
  2,967
  3,145
  3,336
  3,539
  3,755
  3,985
  4,229
  4,489
  4,764
  5,056
  5,365
  5,693
  6,040
Change in working capital, $m
  346
  2
  2
  2
  2
  3
  3
  3
  3
  4
  4
  4
  5
  5
  5
  5
  6
  6
  6
  7
  7
  8
  8
  8
  9
  9
  10
  10
  11
  11
  12
Cash from operations, $m
  2,545
  1,361
  1,439
  1,471
  1,512
  1,560
  1,617
  1,681
  1,754
  1,835
  1,924
  2,010
  2,117
  2,233
  2,358
  2,493
  2,638
  2,794
  2,960
  3,138
  3,329
  3,531
  3,747
  3,976
  4,220
  4,479
  4,754
  5,045
  5,354
  5,681
  6,028
Maintenance CAPEX, $m
  0
  -451
  -460
  -470
  -482
  -496
  -511
  -527
  -545
  -565
  -586
  -608
  -632
  -658
  -685
  -714
  -745
  -778
  -812
  -849
  -887
  -928
  -971
  -1,017
  -1,064
  -1,115
  -1,168
  -1,224
  -1,283
  -1,345
  -1,410
New CAPEX, $m
  -582
  -45
  -53
  -60
  -68
  -75
  -82
  -90
  -97
  -105
  -112
  -120
  -128
  -137
  -145
  -154
  -163
  -173
  -183
  -193
  -204
  -215
  -227
  -239
  -252
  -265
  -279
  -294
  -309
  -326
  -342
Cash from investing activities, $m
  -887
  -496
  -513
  -530
  -550
  -571
  -593
  -617
  -642
  -670
  -698
  -728
  -760
  -795
  -830
  -868
  -908
  -951
  -995
  -1,042
  -1,091
  -1,143
  -1,198
  -1,256
  -1,316
  -1,380
  -1,447
  -1,518
  -1,592
  -1,671
  -1,752
Free cash flow, $m
  1,658
  865
  927
  941
  962
  989
  1,023
  1,064
  1,111
  1,165
  1,226
  1,282
  1,356
  1,438
  1,528
  1,625
  1,730
  1,843
  1,965
  2,097
  2,237
  2,388
  2,549
  2,721
  2,904
  3,099
  3,307
  3,528
  3,762
  4,011
  4,276
Issuance/(repayment) of debt, $m
  -394
  172
  205
  234
  263
  292
  320
  348
  377
  406
  436
  467
  498
  530
  563
  598
  634
  671
  709
  749
  791
  835
  880
  928
  978
  1,030
  1,084
  1,141
  1,201
  1,263
  1,329
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
  172
  205
  234
  263
  292
  320
  348
  377
  406
  436
  467
  498
  530
  563
  598
  634
  671
  709
  749
  791
  835
  880
  928
  978
  1,030
  1,084
  1,141
  1,201
  1,263
  1,329
Total cash flow (excl. dividends), $m
  769
  1,037
  1,132
  1,175
  1,225
  1,281
  1,343
  1,412
  1,488
  1,572
  1,662
  1,749
  1,854
  1,968
  2,091
  2,222
  2,363
  2,514
  2,674
  2,846
  3,028
  3,223
  3,429
  3,649
  3,882
  4,129
  4,391
  4,669
  4,963
  5,275
  5,605
Retained Cash Flow (-), $m
  -331
  -33
  -35
  -40
  -45
  -50
  -55
  -60
  -64
  -69
  -75
  -80
  -85
  -91
  -96
  -102
  -108
  -115
  -121
  -128
  -135
  -143
  -151
  -159
  -167
  -176
  -185
  -195
  -205
  -216
  -227
Prev. year cash balance distribution, $m
 
  2,886
  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
 
  3,891
  1,097
  1,135
  1,180
  1,231
  1,289
  1,353
  1,424
  1,502
  1,587
  1,669
  1,769
  1,878
  1,995
  2,120
  2,255
  2,399
  2,553
  2,718
  2,893
  3,080
  3,279
  3,490
  3,714
  3,953
  4,206
  4,474
  4,758
  5,059
  5,377
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
 
  3,730
  1,004
  988
  971
  954
  935
  914
  890
  863
  832
  792
  755
  714
  670
  622
  573
  522
  470
  418
  368
  319
  272
  229
  189
  154
  123
  96
  74
  55
  40
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. operates as a retailer of technology products, services, and solutions in the United States, Canada, and Mexico. The company operates through two reportable segments, Domestic and International. Its stores provide consumer electronics, such as home theater, home automation, digital imaging, health and fitness, and portable audio products; computing and mobile phones, including computing and peripherals, networking, tablets, smart watches, and e-readers, as well as mobile phones comprising related mobile network carrier commissions; and entertainment products, such as gaming hardware and software, movie, music, technology toy, and other software products. The companyÂ’s stores also offer appliances, which include refrigeration and laundry appliances, dishwashers, ovens, coffee makers, blenders, etc.; and other products comprising snacks, beverages, and other sundry items. In addition, it provides services, such as consultation, design, delivery, installation, set-up, protection plan, repair, technical support, and educational services. The company offers its products through stores and Websites under the Best Buy, bestbuy.com, Best Buy Mobile, Best Buy Direct, Best Buy Express, Geek Squad, Magnolia Home Theater, Pacific Kitchen and Home, bestbuy.com.ca, bestbuy.com.mx, and Geek Squad brand names, as well as through call centers. As of January 30, 2016, it had approximately 1,200 large-format and 400 small-format stores. The company was formerly known as Sound of Music, Inc. Best Buy Co., Inc. was founded in 1966 and is headquartered in Richfield, Minnesota.

FINANCIAL RATIOS  of  Best Buy (BBY)

Valuation Ratios
P/E Ratio 14
Price to Sales 0.4
Price to Book 3.6
Price to Tangible Book
Price to Cash Flow 6.7
Price to Free Cash Flow 8.7
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 $39528 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 2% 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 90.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $2337 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 4.6% 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 0.2%. 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 - $4378 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 300.19 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 $16.6 billion.


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COMPANY NEWS

▶ Did Apple Just Make Best Buy a Better Buy?   [Jun-22-17 04:48PM  Motley Fool]
▶ 3 Growth Opportunities for Best Buy   [Jun-21-17 02:45PM  Motley Fool]
▶ A New Large-Cap, Multi-Factor ETF Hits the Town   [Jun-20-17 11:30AM  Investopedia]
▶ Is the Best Buy Credit Card Right for You?   [Jun-19-17 11:42AM  Motley Fool]
▶ Bull of the Day: Best Buy (BBY)   [05:28AM  Zacks]
▶ 3 Dividend Stocks for Astute Investors   [07:36AM  Motley Fool]
▶ 5 Large Cap Stocks to Buy Now   [03:47PM  Zacks]
▶ Best Buy Has a New Way to Fight Amazon   [09:36AM  Motley Fool]
▶ These 6 Retailers Are Actually Thriving   [06:00AM  Motley Fool]
▶ Best Buy Goes After Amazon With This New Service   [Jun-12-17 08:15PM  TheStreet.com]
▶ Retail waving white flag? 9 trades   [Jun-08-17 05:00PM  CNBC Videos]
▶ Amazon Owned the Past Decade   [11:09AM  Investopedia]
▶ Minnesota lands 18 companies on the Fortune 500 but change is likely (slideshow)   [Jun-07-17 03:00PM  American City Business Journals]
▶ Best Buy's Not GameStop. It's Wal-Mart.   [Jun-05-17 02:25PM  Barrons.com]
▶ Best Buy And Retail's Long Road Back   [Jun-01-17 02:02PM  Forbes]
▶ RadioShack Announces Final Deals on Twitter   [05:53AM  24/7 Wall St.]
▶ Best Buy Is Doing Even Better Than Good   [May-31-17 08:32AM  Motley Fool]
▶ Why Best Buys Margins Shrank in Fiscal 1Q18   [07:37AM  Market Realist]
▶ How strong is Best Buy right now? It may even be taking share from Amazon   [May-28-17 01:18PM  American City Business Journals]
▶ What Investors Missed in the Market This Week   [May-27-17 12:16PM  Motley Fool]
▶ What Really Drove Best Buys Revenue in Fiscal 1Q18?   [May-26-17 05:36PM  Market Realist]
▶ Retail And E-Commerce News And Stocks To Watch   [04:01PM  Investor's Business Daily]
▶ Qualcomm, Qorvo, Best Buy, Costco Get Price-Target Hikes   [04:01PM  Investor's Business Daily]
▶ Why Best Buys Stock Just Blasted Off   [02:26PM  Market Realist]
▶ No ice age for this retail stock as Nasdaq, S&P hit new records   [12:57PM  American City Business Journals]
▶ [$$] Best Buy Defies Retail Doldrums, Posting Higher Sales   [01:12AM  The Wall Street Journal]
▶ [$$] Best Buy Defies Slump in Retail   [May-25-17 07:27PM  The Wall Street Journal]
▶ Cramer: Investors Keep Getting It Wrong   [07:01PM  TheStreet.com]
Stock chart of BBY Financial statements of BBY Annual reports 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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