What is Best Buy Co., Inc. (BBY) DCF Fair Value and Intrinsic Value in 2026?

Best Buy Co., Inc. (BBY) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Best Buy Co., Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

Best Buy Co., Inc. operates in the Consumer Cyclical sector (Specialty Retail) with an economic moat rating of NONE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Best Buy Co., Inc.'s financial health rating and Piotroski F-Score?

Best Buy Co., Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Best Buy Co., Inc. (BBY) for quarterly SEC filing thesis breaks?

LocalAlpha audits Best Buy Co., Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksBBY

BBY

Best Buy Co., Inc.Consumer Cyclical / Specialty RetailINTACT

Best Buy Co., Inc. offers technology products and solutions in the United States, Canada, and internationally. The company provides computing and mobile phone products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer electronics consisting of digital imaging, health and fitness products, portable audio comprising headphones and portable speakers, and smart home products, as well as home theaters that includes home theater accessories, soundbars, and televisions. It also offers appliances, such as dishwashers, laundry, ovens, refrigerators, blenders, coffee makers, vacuums, and personal care; entertainment products consisting of drones, peripherals, gaming, toys, and virtual reality, as well as hardware and software, and augmented reality glasses and other software products; and other products, such as baby, food and beverage, luggage, and outdoor living products. In addition, the company provides delivery, installation, marketplace commissions, memberships, repair, set-up, technical support, health-related, and warranty-related services. It offers its products through stores and websites under the Best Buy, Best Buy Ads, Best Buy Business, Best Buy Essentials, Best Buy Health, Best Buy Marketplace, Geek Squad, Imagine That, Insignia, Lively, Jitterbug, My Best Buy, My Best Buy Memberships, Pacific Kitchen, Home, TechLiquidators, and Yardbird brand names, as well as domain names comprising bestbuy.com, lively.com, techliquidators.com, yardbird.com, bestbuy.ca, and techliquidators.ca. The company was formerly known as Sound of Music, Inc. Best Buy Co., Inc. was incorporated in 1966 and is headquartered in Richfield, Minnesota.

Share Price

$89.44

52W: $55.1 - $91.27

DCF Fair Value

$118.85

+24.7% MoS

Thesis Hub

P/E (TTM)

14.9x

ROIC

Operating Margin

3.9%

FCF Yield

7.5%

Debt / Equity

1.3x

Piotroski Score

6/9

Altman Z-Score

6.45

Market Cap

$18.8B

Price vs. Intrinsic Value Corridor

Modest Value ($89.44 vs $118.85 DCF)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$118.85

MOS Buy Target (-25%)

$89.14

Valuation Overlays: DCF Fair Value ($118.85) 25% MOS Buy Target ($89.14) Revised Graham ($90.90) Graham Number ($45.23)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$89.44

DCF Fair Value

$118.67

+24.6% MoS

Starting Free Cash Flow ($M)$1,403M

$100M$1,403M (Reported)$50,000M

Stage 1 Growth (Years 1-5)5.3%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$1,700M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$11.5B

PV of Terminal Value

$15.1B

Implied Enterprise Value

$26.6B

Implied Equity Value

$24.9B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$1,477	$1,556	$1,638	$1,725	$1,816	$1,898	$1,984	$2,073	$2,166	$2,264
Present Value (PV)	$1,355	$1,309	$1,265	$1,222	$1,181	$1,132	$1,085	$1,040	$997	$956

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-97.7% Premium

$45.23

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $6.01BVPS: $15.13

Revised Graham Formula+1.6%

$90.90

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings7.1% Yield

$6.35 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $1.3BYield: 7.1%

Reverse DCF: Market Growth Expectation

EXTREMELY LOW BARRIER

0.3% CAGR (Next 10 Yrs)

At the current price of $89.44, the market is assuming the business will compound Free Cash Flow at 0.3% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil BBY with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Best Buy Co., Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 3.9% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Best Buy Co., Inc. (BBY) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Best Buy Co., Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Best Buy Co., Inc. has an estimated DCF intrinsic fair value of $118.85 per share compared to its current market price of $89.44. This represents an estimated 24.7% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $45.23.