Best Buy Stock Analysis, Valuation (NYSE:BBY)
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 3.3/5
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 Best Buy stock currently trades at a price to earnings ratio of 16.1, compared to the sector average of 21.5. We rate this as a positive.
- When compared with the Retail-Wholesale sector average PS ratio of 0.8, the price-to-sales ratio of 0.5 for BBY stock is attractive.
- Best Buy's return on invested capital of 36.3 is good.
- The LTM ROE of 25.5 for Best Buy is attractive.
Should you sell BBY stock?
- Revenue declined at a CAGR of -2 over the last 5 years.
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.