Best Buy Co., Inc. (BBY) Financial Ratios
30 years of historical data (1997–2026) · Consumer Cyclical · Specialty Retail
EV/EBITDA
↑
8.17
+9% vs avg
5yr avg: 7.50
30Y Low2.6·High21.0
P/FCF
↑
12.52
↓-22% vs avg
5yr avg: 16.00
30Y Low3.5·High56.7
P/B Ratio
↓
5.35
↓-15% vs avg
5yr avg: 6.33
30Y Low0.7·High9.3
ROE
↓
37.0%
-17% vs avg
5yr avg: 44.9%
30Y Low-21%·High65%
Debt/EBITDA
↑
1.86
↑+24% vs avg
5yr avg: 1.50
30Y Low0.0·High3.0
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
BBY Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Best Buy Co., Inc. trades at 14.8x earnings, 6% above its 5-year average of 14.0x, sitting at the 48th percentile of its historical range. Compared to the Consumer Cyclical sector median P/E of 21.2x, the stock trades at a discount of 30%. On a free-cash-flow basis, the stock trades at 12.5x P/FCF, 22% below the 5-year average of 16.0x.
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $15.7B | $13.8B | $18.6B | $16.5B | $19.2B | $24.3B | $28.6B | $22.7B | $16.5B | $21.9B | $14.0B |
| Enterprise Value | $18.1B | $16.2B | $21.1B | $19.1B | $21.3B | $25.3B | $27.1B | $24.5B | $15.9B | $22.1B | $13.1B |
| P/E Ratio → | 14.83 | 12.92 | 20.06 | 13.33 | 13.54 | 9.92 | 15.91 | 14.73 | 11.24 | 21.85 | 11.41 |
| P/S Ratio | 0.38 | 0.33 | 0.45 | 0.38 | 0.42 | 0.47 | 0.61 | 0.52 | 0.38 | 0.52 | 0.36 |
| P/B Ratio | 5.35 | 4.66 | 6.62 | 5.42 | 6.88 | 8.06 | 6.24 | 6.53 | 4.98 | 6.06 | 2.98 |
| P/FCF | 12.52 | 10.98 | 13.36 | 24.50 | 21.50 | 9.68 | 6.79 | 12.46 | 10.35 | 15.06 | 7.14 |
| P/OCF | 8.03 | 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
BBY EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Best Buy Co., Inc.'s enterprise value stands at 8.2x EBITDA, 9% above its 5-year average of 7.5x. The Consumer Cyclical sector median is 12.2x, placing the stock at a 33% discount on an enterprise-value basis.
| 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 | 8.17 | 7.30 | 8.15 | 7.64 | 7.86 | 6.56 | 8.40 | 8.67 | 5.94 | 8.76 | 5.24 |
| EV / EBIT | 13.06 | 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 |
BBY Profitability
Margins and return-on-capital ratios measuring operating efficiency
Best Buy Co., Inc. earns an operating margin of 3.3%, roughly in line with the Consumer Cyclical sector average. Return on equity of 37.0% is exceptionally high — well above the sector median of 5.3%. ROIC of 19.6% represents solid returns on invested capital versus a sector median of 5.2%.
Margins
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% |
Return on Capital
| 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% |
BBY Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Best Buy Co., Inc. carries a Debt/EBITDA ratio of 1.9x, which is manageable (61% below the sector average of 4.8x). Net debt stands at $2.4B ($4.1B total debt minus $1.7B cash). Interest coverage of 30.9x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| 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 |
BBY Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.11x means Best Buy Co., Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 0.43x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 1.00x to 1.11x over the past 3 years.
| 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 |
BBY Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Best Buy Co., Inc. returns 6.8% to shareholders annually — split between a 5.1% dividend yield and 1.7% buyback yield. The payout ratio of 74.9% is elevated — while still covered by earnings, there is limited headroom for dividend increases. The earnings yield of 6.7% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 5.1% | 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% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.7% | 7.7% | 5.0% | 7.5% | 7.4% | 10.1% | 6.3% | 6.8% | 8.9% | 4.6% | 8.8% |
| FCF Yield | 8.0% | 9.1% | 7.5% | 4.1% | 4.7% | 10.3% | 14.7% | 8.0% | 9.7% | 6.6% | 14.0% |
| Buyback Yield | 1.7% | 2.0% | 2.7% | 2.1% | 5.3% | 14.4% | 1.1% | 4.4% | 9.1% | 9.2% | 5.0% |
| Total Shareholder Yield | 6.8% | 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 |
Peer Comparison
Compare BBY with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 BBYYou | $16B | 14.8 | 8.2 | 12.5 | 22.5% | 3.3% | 37.0% | 19.6% | 1.9 |
 WMT | $934B | 42.9 | 22.5 | 62.6 | 24.9% | 4.2% | 21.5% | 14.4% | 1.5 |
 TGT | $59B | 16.1 | 9.3 | 20.9 | 25.4% | 4.6% | 24.0% | 12.0% | 2.5 |
 COST | $422B | 52.2 | 32.5 | 53.8 | 12.8% | 3.8% | 30.7% | 34.5% | 0.6 |
 BJ | $11B | 19.5 | 11.8 | 32.9 | 18.6% | 3.9% | 28.6% | 13.5% | 2.3 |
 DG | $25B | 16.6 | 12.2 | 10.5 | 30.7% | 5.2% | 19.0% | 7.0% | 4.8 |
 DLTR | $21B | 18.8 | 11.3 | 15.4 | 36.4% | 8.2% | 33.2% | 13.2% | 2.1 |
 AMZN | $2.6T | 34.1 | 18.5 | 341.6 | 50.3% | 11.2% | 22.3% | 14.7% | 1.0 |
 GME | $10B | 27.9 | 25.3 | 16.2 | 32.4% | 7.9% | 8.1% | 10.5% | 14.3 |
 HGV | $4B | 59.2 | 13.3 | 18.6 | 56.7% | 11.1% | 4.9% | 5.0% | 8.8 |
 AAPL | $4.4T | 39.9 | 30.8 | 44.3 | 46.9% | 32.0% | 171.4% | 67.4% | 0.8 |
| Consumer Cyclical Median | — | 21.2 | 12.2 | 15.6 | 36.2% | 2.0% | 5.3% | 5.2% | 4.8 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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BBY — Frequently Asked Questions
Quick answers to the most common questions about buying BBY stock.
What is Best Buy Co., Inc.'s P/E ratio?
Best Buy Co., Inc.'s current P/E ratio is 14.8x. The historical average is 20.5x. This places it at the 48th percentile of its historical range.
What is Best Buy Co., Inc.'s EV/EBITDA?
Best Buy Co., Inc.'s current EV/EBITDA is 8.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.9x.
What is Best Buy Co., Inc.'s ROE?
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%.
Is BBY stock overvalued?
Based on historical data, Best Buy Co., Inc. is trading at a P/E of 14.8x. This is at the 48th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Best Buy Co., Inc.'s dividend yield?
Best Buy Co., Inc.'s current dividend yield is 5.05% with a payout ratio of 74.9%.
What are Best Buy Co., Inc.'s profit margins?
Best Buy Co., Inc. has 22.5% gross margin and 3.3% operating margin.
How much debt does Best Buy Co., Inc. have?
Best Buy Co., Inc.'s Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.