Best Buy Co., Inc. (BBY) Stock Analysis
Score AValue · Grade A · Bearish
$59.48
$77.32
+30.0%
10/10
A
Value
Investment Thesis
Good opportunity: Solid company with good risk/reward at 9.4:1.
For New Investors
Quantitative score: high
For Current Holders
Quantitative score: neutral
Buy if
- Price drops 15-20% (improves asymmetry)
- Bull scenario catalysts materialize
- Market-wide correction creates opportunity
Sell if
- Bear scenario triggers occur
- Quality metrics deteriorate (ROIC declining)
- Better alternatives emerge
Valuation
Fair Value estimate: $77.32 (+30.0%). Significantly undervalued. (Fair value adjusted: model estimate was outside reasonable range.)
PEG-Based EPS
$77.32
FCF DCF Model
$77.32
EV/EBITDA
$77.32
Blended Fair Value
$77.32
Confidence
High
Methods
PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA
Quality Analysis
91/120 points
Investable
ROE (3Y Avg)
36.6%
ROIC-WACC Spread
8.4%
D/E Ratio
1.4x
Current Ratio
1.1x
Interest Coverage
30x
FCF Positive Years
3/3
Quality Flags
- ROIC spread: 8.4pp (got 21/25 pts)
- Leverage: D/E 1.4x (5/15 pts)
Market Sentiment
Wall Street Consensus
$72.00
+21.1% Upside
20 analysts
Range: $60.00 — $96.00
Rating: Hold
Our model is slightly more bullish than Wall Street.
Trend & Technical
Price ($59.47) is 13.0% below SMA 200 ($68.37). Bearish trend. Caution on entry.
Tech Score 46/100 — Weak technicals. Bearish bias in trend or momentum.
Risk & Reward
Asymmetry Ratio
9.37:1
Expected Return
+44.2%
Bull Upside
+93.7%
Bear Downside
-10.0%
Excellent asymmetry: 9.37:1 ratio. Upside significantly outweighs downside.
Verdict: Very Favorable
Scenario Analysis
Bear
Base
Bull
Buy Zone & Action Plan
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AI Executive Summary
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Technical Analysis
RSI, MACD, moving averages, trend signals, and momentum indicators.
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Frequently Asked Questions
What is the fair value of BBY?
Based on our multi-method conviction analysis, the estimated fair value of Best Buy Co., Inc. (BBY) is $77.32. This is calculated by blending PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is high.
Is BBY a buy, sell, or hold?
BBY currently has a BUY rating with a conviction score of 10/10. Good opportunity: Solid company with good risk/reward at 9.4:1. Quantitative score: high.
Is BBY a high-quality stock?
Best Buy Co., Inc. has a quality grade of A (91/120 points), rated as Investable. Key metrics include ROE of 36.6%, ROIC-WACC spread of 8.4%, and D/E ratio of 1.4x.
What type of stock is BBY?
BBY is classified as a "value" in our framework. Low P/E: 11.8x, High FCF Yield: 10.1%, High dividend: 6.4%, Mature growth: -1.4%, Cyclical sector: Consumer Cyclical
What do Wall Street analysts say about BBY?
20 Wall Street analysts have a consensus price target of $72.00 for BBY, representing +21.1% upside. Targets range from $60.00 to $96.00. The consensus recommendation is "Hold". Our model is slightly more bullish than Wall Street.
What are the risks of investing in BBY?
The risk/reward asymmetry ratio for BBY is 9.37:1, rated as Very Favorable. Excellent asymmetry: 9.37:1 ratio. Upside significantly outweighs downside. The expected return is +44.2%, with bull case upside of +93.7% and bear case downside of -10.0%.
What is the current trend for BBY?
BBY is in a bearish trend. Price ($59.47) is 13.0% below SMA 200 ($68.37). Bearish trend. Caution on entry. The technical score is 46/100.
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Last updated: May 19, 2026 · Framework version 3.7
This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.