BBY Best Buy
Intrinsic value$70.81
Price (at call)$93.22
Margin of safety
-24.0%
vs market (rating basis)
+40.1%
Model unavailable; showing baseline valuation.
⚠ LLM error: empty response; using baseline
The story
Value drivers
| Revenue growth (Y1) | -3.4% |
| Terminal growth | 3.5% |
| Forecast horizon | 10y |
| Target operating margin | 4.2% |
| Years to target margin | 5 |
| Sales-to-capital | 5.00 |
| Beta | 1.30 |
| Failure probability | 0.0% |
| Cost of capital (WACC) | 10.5% |
| Terminal WACC | 9.2% |
Valuation bridge
| PV of explicit FCFF | 7.31B |
| PV of terminal value | 6.97B |
| Equity value | 14.85B |
| ÷ shares → per share | $70.81 |
News
neutral +0.10 · 8 articles
- 3 Inflated Stocks We Think Twice About
- Is Best Buy Stock Outperforming the Dow?
- Best Buy's Chairman Emeritus Sells 300,000 Shares for $27.8 Million as the Stock Soars
- Best Buy's AI Push Drives Digital Growth & Retail Momentum
- Is Uber's Deal With Costco on Nationwide Delivery a Game Changer?
- Best Buy Co Inc's Dividend Analysis
- How Investors May Respond To Best Buy (BBY) Holiday Push Into Immersive Tech And Loyalty Programs
- Target and 5 More Retail Stocks That Make the Grade
Projected free cash flow to the firm
| Yr | Revenue | Growth | Margin | NOPAT | Reinvest | FCFF | PV |
|---|---|---|---|---|---|---|---|
| 1 | 40.75B | -3.4% | 4.2% | 1.31B | 0 | 1.31B | 1.18B |
| 2 | 39.67B | -2.7% | 4.2% | 1.27B | 0 | 1.27B | 1.04B |
| 3 | 38.92B | -1.9% | 4.2% | 1.25B | 0 | 1.25B | 925.54M |
| 4 | 38.48B | -1.1% | 4.2% | 1.23B | 0 | 1.23B | 828.18M |
| 5 | 38.34B | -0.4% | 4.2% | 1.23B | 0 | 1.23B | 746.83M |
| 6 | 38.50B | 0.4% | 4.2% | 1.24B | 32.09M | 1.20B | 661.05M |
| 7 | 38.96B | 1.2% | 4.2% | 1.25B | 91.55M | 1.16B | 575.97M |
| 8 | 39.73B | 2.0% | 4.2% | 1.27B | 152.67M | 1.12B | 504.75M |
| 9 | 40.81B | 2.7% | 4.2% | 1.31B | 216.87M | 1.09B | 444.81M |
| 10 | 42.24B | 3.5% | 4.2% | 1.36B | 285.67M | 1.07B | 394.08M |