Latest Ratios: P/E Ratio 18.0x · EV/EBITDA 9.7x · ROE 37.0%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $19.1B | $13.8B | $18.6B | $16.5B | $19.2B | $24.3B | $28.6B | $22.7B | $16.5B | $21.9B | $14.0B |
| Enterprise Value | $21.5B | $16.2B | $21.1B | $19.1B | $21.3B | $25.3B | $27.1B | $24.5B | $15.9B | $22.1B | $13.1B |
| P/E Ratio → | 18.02 | 12.92 | 20.06 | 13.33 | 13.54 | 9.92 | 15.91 | 14.73 | 11.24 | 21.85 | 11.41 |
| P/S Ratio | 0.46 | 0.33 | 0.45 | 0.38 | 0.42 | 0.47 | 0.61 | 0.52 | 0.38 | 0.52 | 0.36 |
| P/B Ratio | 6.50 | 4.66 | 6.62 | 5.42 | 6.88 | 8.06 | 6.24 | 6.53 | 4.98 | 6.06 | 2.98 |
| P/FCF | 15.21 | 10.98 | 13.36 | 24.50 | 21.50 | 9.68 | 6.79 | 12.46 | 10.35 | 15.06 | 7.14 |
| P/OCF | 9.75 | 7.04 | 8.86 | 11.25 | 10.54 | 7.49 | 5.81 | 8.85 | 6.83 | 10.22 | 5.51 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.39 | 0.51 | 0.44 | 0.46 | 0.49 | 0.57 | 0.56 | 0.37 | 0.53 | 0.33 |
| EV / EBITDA | 9.70 | 7.30 | 8.15 | 7.64 | 7.86 | 6.56 | 8.40 | 8.67 | 5.94 | 8.76 | 5.24 |
| EV / EBIT | 15.50 | 11.17 | 15.66 | 11.40 | 11.70 | 8.31 | 11.16 | 11.90 | 8.09 | 11.70 | 6.96 |
| EV / FCF | — | 12.88 | 15.14 | 28.26 | 23.86 | 10.08 | 6.43 | 13.43 | 9.98 | 15.23 | 6.70 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 22.5% | 22.5% | 22.6% | 22.1% | 21.4% | 22.5% | 22.4% | 23.0% | 23.2% | 23.4% | 24.0% |
| Operating Margin | 3.3% | 3.3% | 4.1% | 3.6% | 3.9% | 5.8% | 5.1% | 4.6% | 4.4% | 4.4% | 4.7% |
| Net Profit Margin | 2.6% | 2.6% | 2.2% | 2.9% | 3.1% | 4.7% | 3.8% | 3.5% | 3.4% | 2.4% | 3.1% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 37.0% | 37.0% | 31.6% | 42.4% | 48.8% | 64.5% | 44.6% | 45.4% | 42.3% | 24.0% | 27.0% |
| ROA | 7.3% | 7.3% | 6.2% | 8.1% | 8.5% | 13.4% | 10.4% | 10.8% | 11.3% | 7.4% | 9.0% |
| ROIC | 19.6% | 19.6% | 23.7% | 22.5% | 30.2% | 63.3% | 43.1% | 37.9% | 43.3% | 35.9% | 34.9% |
| ROCE | 20.2% | 20.2% | 24.9% | 22.7% | 26.3% | 39.0% | 29.7% | 31.1% | 35.8% | 30.8% | 27.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.39 | 1.39 | 1.44 | 1.30 | 1.42 | 1.30 | 0.87 | 1.15 | 0.42 | 0.38 | 0.29 |
| Debt / EBITDA | 1.86 | 1.86 | 1.57 | 1.59 | 1.47 | 1.02 | 1.24 | 1.42 | 0.52 | 0.54 | 0.54 |
| Net Debt / Equity | — | 0.81 | 0.88 | 0.83 | 0.75 | 0.33 | -0.33 | 0.51 | -0.18 | 0.07 | -0.19 |
| Net Debt / EBITDA | 1.08 | 1.08 | 0.96 | 1.02 | 0.78 | 0.26 | -0.47 | 0.63 | -0.22 | 0.10 | -0.35 |
| Debt / FCF | — | 1.90 | 1.78 | 3.76 | 2.35 | 0.40 | -0.36 | 0.97 | -0.37 | 0.17 | -0.45 |
| Interest Coverage | 30.87 | 30.87 | 26.39 | 32.17 | 52.09 | 121.96 | 46.71 | 32.14 | 26.86 | 25.23 | 26.22 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.11 | 1.11 | 1.03 | 1.00 | 0.98 | 0.99 | 1.19 | 1.10 | 1.18 | 1.26 | 1.48 |
| Quick Ratio | 0.43 | 0.43 | 0.39 | 0.37 | 0.41 | 0.43 | 0.66 | 0.46 | 0.46 | 0.59 | 0.79 |
| Cash Ratio | 0.23 | 0.23 | 0.20 | 0.18 | 0.21 | 0.28 | 0.52 | 0.28 | 0.26 | 0.40 | 0.55 |
| Asset Turnover | — | 2.84 | 2.81 | 2.90 | 2.93 | 2.96 | 2.48 | 2.80 | 3.32 | 3.23 | 2.84 |
| Inventory Turnover | 6.18 | 6.18 | 6.32 | 6.83 | 7.08 | 6.73 | 6.54 | 6.49 | 6.09 | 6.20 | 6.16 |
| Days Sales Outstanding | — | 9.13 | 9.18 | 7.89 | 9.00 | 7.35 | 8.19 | 9.61 | 8.64 | 9.08 | 12.48 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 4.2% | 5.8% | 4.3% | 4.8% | 4.1% | 2.8% | 2.0% | 2.3% | 3.0% | 1.9% | 3.6% |
| Payout Ratio | 74.9% | 74.9% | 87.1% | 64.5% | 55.6% | 28.0% | 31.6% | 34.2% | 33.9% | 40.9% | 41.1% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.6% | 7.7% | 5.0% | 7.5% | 7.4% | 10.1% | 6.3% | 6.8% | 8.9% | 4.6% | 8.8% |
| FCF Yield | 6.6% | 9.1% | 7.5% | 4.1% | 4.7% | 10.3% | 14.7% | 8.0% | 9.7% | 6.6% | 14.0% |
| Buyback Yield | 1.4% | 2.0% | 2.7% | 2.1% | 5.3% | 14.4% | 1.1% | 4.4% | 9.1% | 9.2% | 5.0% |
| Total Shareholder Yield | 5.6% | 7.8% | 7.0% | 6.9% | 9.4% | 17.2% | 3.1% | 6.7% | 12.2% | 11.0% | 8.6% |
| Shares Outstanding | — | $212M | $217M | $219M | $226M | $249M | $263M | $268M | $281M | $307M | $323M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying BBY stock.
Best Buy Co., Inc.'s current P/E ratio is 18.0x. The historical average is 20.5x. This places it at the 63th percentile of its historical range.
Best Buy Co., Inc.'s current EV/EBITDA is 9.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.9x.
Best Buy Co., Inc.'s return on equity (ROE) is 37.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 25.0%.
Based on historical data, Best Buy Co., Inc. is trading at a P/E of 18.0x. This is at the 63th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Best Buy Co., Inc.'s current dividend yield is 4.16% with a payout ratio of 74.9%.
Best Buy Co., Inc. has 22.5% gross margin and 3.3% operating margin.
Best Buy Co., Inc.'s Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Leverage amplifies macro sensitivity
Metrics are mathematically derived from official filings.
Discount Reflects Cyclical, Low-Growth Profile
Best Buy trades at a forward P/E of 13.33 and EV/EBITDA of 7.84, a significant discount to the broader retail sector, suggesting the market prices in its cyclical exposure and limited growth prospects beyond a potential hardware refresh cycle.
The valuation multiples, particularly the P/S of 0.46, are depressed relative to peers like Target (P/S ~0.5) and Walmart (P/S ~0.7), reflecting Best Buy's lower-margin, transactional revenue model. The forward P/E of 13.33 implies the market expects earnings to remain relatively flat or grow modestly, which aligns with the recent stabilization in comparable sales growth. This discount appears to be a structural feature, not a temporary mispricing, given the company's sensitivity to consumer discretionary spending and the housing market.
Margin Recovery Driven by SG&A Discipline
Operating margin has expanded to 4.3% in 2027Q2 from a low of 1.6% in 2025Q4, primarily due to SG&A leverage as a percentage of revenue, which fell from 23.9% to 19.4% over the same period, indicating improved cost control rather than structural margin improvement.
The gross margin of 23.9% remains structurally constrained by the low-margin nature of consumer electronics resale and intense price competition. The recent operating margin expansion is therefore fragile and dependent on maintaining SG&A discipline, which could be challenged by rising labor costs or investments in the 'Best Buy Health' initiative. The net margin of 3.2% provides a narrow buffer, suggesting that profitability is highly sensitive to even minor revenue shortfalls or cost overruns.
ROIC Recovery Lags Peer Group
Return on Invested Capital (ROIC) has recovered to 6.0% in 2027Q2 from a low of 2.8% in 2025Q4, but remains well below the double-digit returns generated by peers like Walmart (14.4%) and Target (12.6%), indicating a less efficient use of capital.
The ROIC improvement is driven by a recovery in operating margins rather than a significant increase in asset turnover, which has remained relatively stable around 0.60-0.63. This suggests the company is not generating meaningfully more revenue per dollar of invested capital. The ROE of 10.1% is also depressed compared to peers, partly due to the high debt load (D/E of 1.30) which inflates the equity base but does not appear to be generating commensurate returns.
Elevated Debt Constrains Financial Flexibility
Best Buy's Debt/Equity ratio of 1.30, while improved from a peak of 1.54, remains significantly higher than key peers like Walmart (0.63) and Costco (0.28), indicating a leveraged capital structure that could amplify earnings volatility in a downturn.
The interest coverage ratio of 40.09 in 2027Q2 appears strong, but this metric is volatile and has been as low as 7.36 in 2026Q2, highlighting sensitivity to operating income fluctuations. The elevated leverage, combined with a net margin of just 3.2%, suggests that a sustained period of weak sales or margin compression could quickly strain the company's ability to service debt and maintain shareholder returns. This leverage profile warrants monitoring in the context of potential macroeconomic headwinds.
Adequate Liquidity Masked by Working Capital Volatility
The current ratio has improved to 1.12 in 2027Q2 from a low of 1.00, and cash has rebounded to $2.3B, but the quick ratio of 0.41 reveals a heavy dependence on inventory, which constitutes the majority of current assets.
The liquidity position appears adequate for normal operations, but the low quick ratio indicates that the company would face challenges meeting short-term obligations without selling inventory. This inventory dependence is a structural feature of the retail model, but it creates vulnerability in a demand downturn where inventory could become slow-moving. The cash position provides a buffer, but it is often deployed for shareholder returns, which could limit its availability during a stress scenario.
The Misleading Strength of Interest Coverage
The interest coverage ratio, which appears robust at 40.09 in 2027Q2, is the most commonly misapplied metric for Best Buy because it is highly volatile and masks the underlying risk of a leveraged balance sheet in a cyclical business.
This ratio can swing dramatically from quarter to quarter based on operating income, as seen in the range from 7.36 to 56.69 over the past ten quarters. It provides a false sense of security because it does not account for the company's significant working capital needs or the cyclical nature of its cash flows. A more appropriate metric for assessing debt serviceability would be the Debt/EBITDA ratio, which at 6.71 in 2027Q2 provides a more stable and conservative view of the company's leverage relative to its earnings power.