Intrinsic value of Best Buy - BBY

Previous Close

$55.83

  Intrinsic Value

$65.84

stock screener

  Rating & Target

hold

+18%

  Value-price divergence*

-67%

Previous close

$55.83

 
Intrinsic value

$65.84

 
Up/down potential

+18%

 
Rating

hold

 
Value-price divergence*

-67%

*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 17.0

 

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
  40,191
  41,115
  42,172
  43,358
  44,673
  46,115
  47,686
  49,386
  51,217
  53,183
  55,286
  57,530
  59,919
  62,458
  65,152
  68,007
  71,029
  74,225
  77,602
  81,168
  84,930
  88,898
  93,080
  97,487
  102,128
  107,014
  112,158
  117,570
  123,264
  129,253
Variable operating expenses, $m
 
  38,784
  39,675
  40,693
  41,837
  43,104
  44,494
  46,008
  47,647
  49,412
  51,307
  53,291
  55,454
  57,757
  60,204
  62,801
  65,553
  68,467
  71,547
  74,803
  78,240
  81,866
  85,691
  89,722
  93,970
  98,443
  103,154
  108,111
  113,328
  118,817
  124,590
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
  38,784
  39,675
  40,693
  41,837
  43,104
  44,494
  46,008
  47,647
  49,412
  51,307
  53,291
  55,454
  57,757
  60,204
  62,801
  65,553
  68,467
  71,547
  74,803
  78,240
  81,866
  85,691
  89,722
  93,970
  98,443
  103,154
  108,111
  113,328
  118,817
  124,590
Operating income, $m
  1,854
  1,408
  1,441
  1,479
  1,522
  1,569
  1,621
  1,678
  1,739
  1,805
  1,876
  1,995
  2,076
  2,162
  2,253
  2,351
  2,454
  2,563
  2,678
  2,800
  2,928
  3,064
  3,207
  3,358
  3,517
  3,685
  3,861
  4,046
  4,242
  4,447
  4,663
EBITDA, $m
  2,508
  1,908
  1,952
  2,002
  2,059
  2,121
  2,189
  2,264
  2,345
  2,432
  2,525
  2,625
  2,731
  2,845
  2,965
  3,093
  3,229
  3,372
  3,524
  3,684
  3,854
  4,032
  4,221
  4,419
  4,629
  4,849
  5,081
  5,325
  5,582
  5,852
  6,137
Interest expense (income), $m
  76
  65
  66
  76
  88
  101
  115
  131
  149
  168
  188
  210
  233
  258
  285
  313
  343
  375
  408
  444
  482
  521
  563
  607
  654
  703
  754
  809
  866
  926
  989
Earnings before tax, $m
  1,816
  1,343
  1,375
  1,403
  1,434
  1,468
  1,506
  1,546
  1,590
  1,638
  1,688
  1,785
  1,842
  1,903
  1,968
  2,037
  2,110
  2,188
  2,269
  2,356
  2,447
  2,543
  2,644
  2,751
  2,864
  2,982
  3,107
  3,238
  3,376
  3,521
  3,674
Tax expense, $m
  609
  363
  371
  379
  387
  396
  407
  418
  429
  442
  456
  482
  497
  514
  531
  550
  570
  591
  613
  636
  661
  687
  714
  743
  773
  805
  839
  874
  912
  951
  992
Net income, $m
  1,228
  980
  1,004
  1,024
  1,047
  1,072
  1,099
  1,129
  1,161
  1,195
  1,232
  1,303
  1,345
  1,389
  1,437
  1,487
  1,541
  1,597
  1,657
  1,720
  1,786
  1,856
  1,930
  2,008
  2,090
  2,177
  2,268
  2,364
  2,464
  2,570
  2,682

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
  10,134
  10,367
  10,633
  10,933
  11,264
  11,628
  12,024
  12,452
  12,914
  13,410
  13,940
  14,506
  15,108
  15,748
  16,428
  17,147
  17,910
  18,715
  19,567
  20,466
  21,415
  22,415
  23,470
  24,581
  25,751
  26,983
  28,280
  29,644
  31,080
  32,590
Adjusted assets (=assets-cash), $m
  9,935
  10,134
  10,367
  10,633
  10,933
  11,264
  11,628
  12,024
  12,452
  12,914
  13,410
  13,940
  14,506
  15,108
  15,748
  16,428
  17,147
  17,910
  18,715
  19,567
  20,466
  21,415
  22,415
  23,470
  24,581
  25,751
  26,983
  28,280
  29,644
  31,080
  32,590
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
  2,291
  2,344
  2,404
  2,471
  2,546
  2,629
  2,718
  2,815
  2,919
  3,031
  3,151
  3,279
  3,415
  3,560
  3,714
  3,876
  4,049
  4,231
  4,423
  4,627
  4,841
  5,067
  5,306
  5,557
  5,821
  6,100
  6,393
  6,701
  7,026
  7,367
Working capital, $m
  3,394
  -482
  -493
  -506
  -520
  -536
  -553
  -572
  -593
  -615
  -638
  -663
  -690
  -719
  -749
  -782
  -816
  -852
  -891
  -931
  -974
  -1,019
  -1,067
  -1,117
  -1,170
  -1,226
  -1,284
  -1,346
  -1,411
  -1,479
  -1,551
Total debt, $m
  1,365
  1,339
  1,548
  1,788
  2,057
  2,356
  2,683
  3,039
  3,425
  3,841
  4,287
  4,764
  5,273
  5,815
  6,391
  7,003
  7,651
  8,337
  9,062
  9,828
  10,637
  11,491
  12,392
  13,341
  14,341
  15,394
  16,503
  17,670
  18,898
  20,190
  21,549
Total liabilities, $m
  9,147
  9,121
  9,330
  9,570
  9,839
  10,138
  10,465
  10,821
  11,207
  11,623
  12,069
  12,546
  13,055
  13,597
  14,173
  14,785
  15,433
  16,119
  16,844
  17,610
  18,419
  19,273
  20,174
  21,123
  22,123
  23,176
  24,285
  25,452
  26,680
  27,972
  29,331
Total equity, $m
  4,709
  1,013
  1,037
  1,063
  1,093
  1,126
  1,163
  1,202
  1,245
  1,291
  1,341
  1,394
  1,451
  1,511
  1,575
  1,643
  1,715
  1,791
  1,872
  1,957
  2,047
  2,141
  2,242
  2,347
  2,458
  2,575
  2,698
  2,828
  2,964
  3,108
  3,259
Total liabilities and equity, $m
  13,856
  10,134
  10,367
  10,633
  10,932
  11,264
  11,628
  12,023
  12,452
  12,914
  13,410
  13,940
  14,506
  15,108
  15,748
  16,428
  17,148
  17,910
  18,716
  19,567
  20,466
  21,414
  22,416
  23,470
  24,581
  25,751
  26,983
  28,280
  29,644
  31,080
  32,590
Debt-to-equity ratio
  0.290
  1.320
  1.490
  1.680
  1.880
  2.090
  2.310
  2.530
  2.750
  2.970
  3.200
  3.420
  3.640
  3.850
  4.060
  4.260
  4.460
  4.650
  4.840
  5.020
  5.200
  5.370
  5.530
  5.680
  5.830
  5.980
  6.120
  6.250
  6.370
  6.500
  6.610
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
  980
  1,004
  1,024
  1,047
  1,072
  1,099
  1,129
  1,161
  1,195
  1,232
  1,303
  1,345
  1,389
  1,437
  1,487
  1,541
  1,597
  1,657
  1,720
  1,786
  1,856
  1,930
  2,008
  2,090
  2,177
  2,268
  2,364
  2,464
  2,570
  2,682
Depreciation, amort., depletion, $m
  654
  501
  511
  523
  537
  552
  568
  586
  605
  626
  649
  630
  656
  683
  712
  743
  775
  810
  846
  885
  925
  968
  1,013
  1,061
  1,111
  1,164
  1,220
  1,279
  1,340
  1,405
  1,473
Funds from operations, $m
  2,891
  1,481
  1,515
  1,548
  1,584
  1,624
  1,667
  1,715
  1,766
  1,822
  1,881
  1,933
  2,001
  2,073
  2,149
  2,230
  2,316
  2,407
  2,503
  2,604
  2,712
  2,825
  2,944
  3,069
  3,202
  3,341
  3,488
  3,642
  3,805
  3,976
  4,155
Change in working capital, $m
  346
  -9
  -11
  -13
  -14
  -16
  -17
  -19
  -20
  -22
  -24
  -25
  -27
  -29
  -30
  -32
  -34
  -36
  -38
  -41
  -43
  -45
  -48
  -50
  -53
  -56
  -59
  -62
  -65
  -68
  -72
Cash from operations, $m
  2,545
  1,490
  1,526
  1,560
  1,598
  1,639
  1,685
  1,734
  1,787
  1,844
  1,905
  1,958
  2,028
  2,101
  2,179
  2,262
  2,350
  2,443
  2,541
  2,645
  2,754
  2,870
  2,991
  3,120
  3,255
  3,397
  3,546
  3,704
  3,870
  4,044
  4,227
Maintenance CAPEX, $m
  0
  -449
  -458
  -469
  -481
  -494
  -509
  -526
  -544
  -563
  -584
  -606
  -630
  -656
  -683
  -712
  -743
  -775
  -810
  -846
  -885
  -925
  -968
  -1,013
  -1,061
  -1,111
  -1,164
  -1,220
  -1,279
  -1,340
  -1,405
New CAPEX, $m
  -582
  -45
  -53
  -60
  -68
  -75
  -82
  -90
  -97
  -104
  -112
  -120
  -128
  -136
  -145
  -154
  -163
  -172
  -182
  -192
  -203
  -214
  -226
  -238
  -251
  -265
  -279
  -293
  -308
  -325
  -341
Cash from investing activities, $m
  -887
  -494
  -511
  -529
  -549
  -569
  -591
  -616
  -641
  -667
  -696
  -726
  -758
  -792
  -828
  -866
  -906
  -947
  -992
  -1,038
  -1,088
  -1,139
  -1,194
  -1,251
  -1,312
  -1,376
  -1,443
  -1,513
  -1,587
  -1,665
  -1,746
Free cash flow, $m
  1,658
  996
  1,015
  1,031
  1,050
  1,070
  1,093
  1,119
  1,146
  1,176
  1,209
  1,232
  1,269
  1,309
  1,352
  1,397
  1,445
  1,496
  1,549
  1,606
  1,666
  1,730
  1,797
  1,868
  1,942
  2,021
  2,104
  2,191
  2,283
  2,379
  2,481
Issuance/(repayment) of debt, $m
  -394
  18
  210
  240
  269
  298
  327
  356
  386
  416
  446
  477
  509
  542
  576
  611
  648
  686
  725
  766
  809
  854
  900
  949
  1,000
  1,053
  1,109
  1,167
  1,228
  1,292
  1,359
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
  18
  210
  240
  269
  298
  327
  356
  386
  416
  446
  477
  509
  542
  576
  611
  648
  686
  725
  766
  809
  854
  900
  949
  1,000
  1,053
  1,109
  1,167
  1,228
  1,292
  1,359
Total cash flow (excl. dividends), $m
  769
  1,014
  1,225
  1,271
  1,319
  1,369
  1,421
  1,475
  1,532
  1,592
  1,655
  1,709
  1,779
  1,851
  1,928
  2,008
  2,093
  2,181
  2,275
  2,373
  2,476
  2,584
  2,697
  2,817
  2,942
  3,074
  3,213
  3,358
  3,511
  3,671
  3,840
Retained Cash Flow (-), $m
  -331
  -181
  -23
  -27
  -30
  -33
  -36
  -40
  -43
  -46
  -50
  -53
  -57
  -60
  -64
  -68
  -72
  -76
  -81
  -85
  -90
  -95
  -100
  -105
  -111
  -117
  -123
  -130
  -136
  -144
  -151
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
 
  4,709
  1,202
  1,244
  1,289
  1,335
  1,384
  1,435
  1,489
  1,546
  1,605
  1,656
  1,722
  1,791
  1,864
  1,940
  2,021
  2,105
  2,194
  2,287
  2,386
  2,489
  2,597
  2,711
  2,831
  2,957
  3,089
  3,228
  3,374
  3,528
  3,689
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
 
  4,515
  1,100
  1,083
  1,061
  1,035
  1,005
  970
  931
  888
  842
  787
  735
  681
  626
  570
  513
  458
  404
  352
  303
  257
  216
  178
  144
  115
  90
  69
  52
  39
  28
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 14.1
Price to Sales 0.4
Price to Book 3.7
Price to Tangible Book
Price to Cash Flow 6.8
Price to Free Cash Flow 8.8
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 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 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 305.318 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 $17.0 billion.

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COMPANY NEWS

▶ Best Buy opens distribution center in Compton   [Oct-19-17 05:40PM  American City Business Journals]
▶ Companies With the Most (and Least) Female Leadership   [Oct-02-17 02:16PM  24/7 Wall St.]
▶ No assembly required? Ikea to buy services site TaskRabbit   [Sep-28-17 01:51PM  Associated Press]
▶ One Chart Says Shows Why Sears (SHLD) Is Tanking   [Sep-25-17 07:13AM  InvestorPlace]
▶ Wall Street in Red Over North Korea Concerns   [12:50PM  GuruFocus.com]
▶ Best Buy Getting Closer To Key Technical Benchmark   [03:00AM  Investor's Business Daily]
▶ Apple Watch 3 glitches   [Sep-21-17 01:09PM  Yahoo Finance Video]
▶ Google makes a major move to battle the iPhone   [10:25AM  Yahoo Finance Video]
▶ Yahoo Finance Live: Market Movers - Sep 21st, 2017   [07:20AM  Yahoo Finance Video]
▶ Best Buy's Four-Year Sales, Earnings Outlook Disappoints   [Sep-20-17 04:08PM  Investor's Business Daily]
▶ Best Buy and Rite Aid Stocks Break Support   [01:00PM  Investopedia]
▶ Best Buy Sees More Growth Ahead   [Sep-19-17 06:15PM  Motley Fool]
▶ What Happened in the Stock Market Today   [05:05PM  Motley Fool]
▶ Best Buy Stock Falls As Retailer Sets Sales, Earnings Goals   [04:19PM  Investor's Business Daily]
▶ Best Buy's five-year plan has investors fretting   [03:39PM  American City Business Journals]
▶ Why Best Buy Co. Inc. Stock Plunged Today   [02:12PM  Motley Fool]
▶ Missiles won't move the marketthe Fed will: NYSE trader   [Sep-15-17 01:35PM  Yahoo Finance Video]
▶ It's not too late to buy Best Buy   [Sep-14-17 08:26PM  CNBC Videos]
▶ Tech leaders to state: Don't go all Minnesota Nice in Amazon pitch   [08:50AM  American City Business Journals]
▶ Worries hit consumer market over US ban of Kaspersky   [Sep-13-17 08:51PM  Associated Press]
▶ Yahoo Finance Live: Midday Movers - Sep 13th, 2017   [09:40AM  Yahoo Finance Video]
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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