Best Buy Stock Analysis, Valuation (NYSE:BBY)

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$70.79 $1.13 (1.57%) BBY stock closing price Feb 21, 2018 (Closing)
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Best Buy
Updated on : Feb 21, 2018
previous close
BBY 70.8 (0%)
S&P 500 2701.3 (0%)
Closing Price On: Feb 21, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Retail-Consumer Electricals
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2018-Q3
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-4.1%
Operating Profit
Operating Margin:
4.6%
Sector Average:
5.8%
5 Quarter Net Profit
Net Margins
2018-Q3
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$511M
Net Income:
$239M
Dividend Yield
BBY dividend yield:
1.84%
PROS      CONS
Cash Flow
ROIC
ROE
FCF Margin
PE Valuation
PS Valuation
Long Term Growth
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
BBY PS :
0.5
Industry PS :
0.8
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
42.7%
Return on Equity:
28.3%
Free Cash Flow Margin:
3.4%
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Best Buy Stock Analysis

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Investors can watch the Amigobulls Best Buy stock analysis video here. Our analyst opinion covering the buy and sell arguments for BBY stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Best Buy Co Inc Stock Rating 3.6/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for BBY stock analysis. Best Buy valuation forms a crucial part of our stock analysis. Based on a company's historical fundamentals we arrive at Best Buy stock rating which is indicative of the company's financial performance.

Should you buy BBY stock?

  • The operating cash flow looks good at 2.1 times the net income.
  • BBY stock is trading at an earnings multiple of 17.6 which is better than the industry average of 20.3.
  • BBY stock is trading at a favorable price to sales multiple of 0.5 as against the Retail-Consumer Electricals industry average multiple of 0.8.
  • Best Buy has an attractive ROIC (Return on Invested Capital) of 42.7%
  • The LTM ROE of 28.3% for Best Buy is attractive.
  • The company has a good Free Cash Flow (FCF) margin of 3.4%.

Should you sell BBY stock?

  • Revenue declined at a CAGR of -4.1% over the last 5 years.

Comments on this video and Best Buy stock

Amigobulls Best Buy stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of BBY stock. Fundamentals of a company give detailed information which helps in making invesment decisions.

Among the financials of the company, Best Buy revenue growth along with the profit or net income give a clear picture of the financial health. Investors could make use of BBY technical analysis to check whether the fundamental story is reflected in the market sentiment.