Equity

Is BEST BUY CO INC (BBY) undervalued?

$94.30+3.85% todayNYSE · USD · last traded 2026-09-14 16:45 UTC

BEST BUY CO INC trades on a P/E of 18.71 against earnings growth of -7.1% a year over the last 3 years, giving a PEG ratio of —.

Earnings figures are measured from BBY’s filed annual accounts, not estimated. PEG compares price to earnings growth alone — it says nothing about debt, cash generation, or what an acquirer would pay. Read it alongside the figures below rather than on its own.

PEG

Not available — requires positive earnings and a growth estimate.

P/E ratio18.71
earnings growth (3-year CAGR)-7.1%
PEG ratio
Measured from BBY's filed annual accounts. Trailing, not forecast.
01

What it would cost to buy BBY

Enterprise value is what it would cost to take the whole company: every share at today’s price, plus the debt an acquirer assumes, less the cash they receive. For BEST BUY CO INC that is $18.69B.

Every term below is a line item from a filed statement. The numbers beside each one open the filing it came from — balance-sheet figures arrive already scaled, so there is no “in thousands” to catch you out.

209.7M shares · 10-Q cover page

market capitalisation$19.78B
total debt$1.17B
cash & equivalents$2.25B
enterprise value$18.69B
Balance-sheet terms as reported to 2026-08-01.
Enterprise-value multiples for BEST BUY CO INC
MeasureValue
Diluted earnings per shareto 2026-01-31$5.04
P/E ratioto 2026-01-3118.7
Earnings growth (3-year CAGR)to 2026-01-31−7.1%
PEG ratio
Market capitalisationto 2026-09-02$19.78B
Total debtto 2026-08-01$1.17B
Net debtto 2026-08-01−$1.15B
Enterprise valueto 2026-08-01$18.69B
EBITDAto 2026-01-31$2.22B
Free cash flowto 2026-01-31$1.26B
EV / EBITDAto 2026-01-318.4×
EV / Salesto 2026-01-310.4×
Free cash flow yieldto 2026-01-316.4%
Net debt / EBITDAto 2026-01-31−0.5×
Return on capital employedto 2026-01-3131.9%

Earnings growth is measured across BEST BUY CO INC’s own filed annual accounts. PEG conventionally uses forecast growth from analyst estimates; filings contain only history, so this is trailing growth and will read differently from a PEG quoted elsewhere.

Not shown, and why

PEG ratio
earnings shrank over the period measured, so dividing the P/E by growth has no meaning.
02

Against the sector

No sector comparison: fewer than four companies in the reference set share BBY’s industry classification.

03

Market ratios

Price-based ratios from market data. Anything drawn from a filed statement is in the enterprise-value section above, with its source.

Valuation and financial-health metrics for BEST BUY CO INC (BBY)
MetricValue
Price$94.30
PEGY ratio
Dividend yield4.07%
Price / book
Price / sales
Return on equity43.1%
Profit margin
Operating margin
Debt / equity36.73
Current ratio
Beta1.27
52-week range$55.10 – $94.30

Not reported for BBY: pegy ratio, price / book, price / sales, profit margin, operating margin, current ratio. A dash means the figure was not available from the source, not that it is zero.

04

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05

About BBY’s valuation

What is the PEG ratio for BEST BUY CO INC (BBY)?
BEST BUY CO INC has a PEG ratio of —, from a P/E of 18.71 and earnings growth of -7.1% a year measured across 3 years of filed accounts. Note that PEG is conventionally quoted against forecast growth; this uses reported history, so it will differ from a PEG you see elsewhere.
Is BBY undervalued right now?
That depends on the measure. On PEG, BBY reads —. The PEG ratio compares price to earnings growth alone — it ignores debt, cash generation and asset backing, so it is a starting point rather than a conclusion. The enterprise-value measures above account for debt and cash; they often tell a different story.
What is the PEGY ratio for BBY?
The PEGY ratio for BEST BUY CO INC is —. PEGY adds the dividend yield of 4.07% to the growth rate in the denominator, which gives a fairer reading of companies returning cash as income rather than growth.
Where do these BBY figures come from?
Market price and capitalisation come from live market data; earnings, growth and dividend figures come from BEST BUY CO INC's published financial statements. Every derived ratio on this page shows the arithmetic that produced it.

This page describes published financial data. It is not investment advice and makes no recommendation to buy or sell BBY.