Best Buy Valuation
| BBY Stock | MXN 1,486 153.50 9.36% |
At this time, the firm appears to be overvalued. Best Buy shows a prevailing Real Value of 1293.25 per share. The current price of the firm is 1486.5. Our model approximates the value of Best Buy from analyzing the firm fundamentals such as Return On Equity of 0.43, profit margin of 0.03 %, and Current Valuation of 416.68 B as well as examining its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Best Buy's price fluctuation is very steady at this time. Calculation of the real value of Best Buy is based on 3 months time horizon. Increasing Best Buy's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Best Buy is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Best Stock. However, Best Buy's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 1486.5 | Real 1293.25 | Hype 1486.5 | Naive 1407.41 |
The intrinsic value of Best Buy's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Best Buy's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Best Buy Co helps investors to forecast how Best stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Best Buy more accurately as focusing exclusively on Best Buy's fundamentals will not take into account other important factors: Best Buy Total Value Analysis
Best Buy Co is currently anticipated to have takeover price of 416.68 B with market capitalization of 355.54 B, debt of 1.22 B, and cash on hands of 1.76 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Best Buy fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
416.68 B | 355.54 B | 1.22 B | 1.76 B |
Best Buy Investor Information
About 80.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 2.59. Best Buy recorded earning per share (EPS) of 125.51. The entity last dividend was issued on the 9th of December 2022. Based on the key measurements obtained from Best Buy's financial statements, Best Buy Co is not in a good financial situation at the moment. It has a very high risk of going through financial straits in April.Best Buy Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Best Buy has an asset utilization ratio of 295.71 percent. This suggests that the Company is making 2.96 for each dollar of assets. An increasing asset utilization means that Best Buy Co is more efficient with each dollar of assets it utilizes for everyday operations.Best Buy Ownership Allocation
Best Buy holds a total of 221.26 Million outstanding shares. The majority of Best Buy Co outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Best Buy to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Best Buy. Please pay attention to any change in the institutional holdings of Best Buy Co as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Best Buy Profitability Analysis
The company reported the revenue of 51.76 B. Net Income was 2.45 B with profit before overhead, payroll, taxes, and interest of 11.63 B.About Best Buy Valuation
Our relative valuation model uses a comparative analysis of Best Buy. We calculate exposure to Best Buy's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Best Buy's related companies.Best Buy Co., Inc. operates as a retailer of technology products, services, and solutions in the United States, Canada, and Mexico. Best Buy Co., Inc. was founded in 1966 and is headquartered in Richfield, Minnesota. Best Buy operates under Specialty Retail classification in Mexico and is traded on Mexico Stock Exchange. It employs 125000 people.
8 Steps to conduct Best Buy's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Best Buy's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Best Buy's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Best Buy's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Best Buy's revenue streams: Identify Best Buy's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Best Buy's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Best Buy's growth potential: Evaluate Best Buy's management, business model, and growth potential.
- Determine Best Buy's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Best Buy's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Additional Tools for Best Stock Analysis
When running Best Buy's price analysis, check to measure Best Buy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Best Buy is operating at the current time. Most of Best Buy's value examination focuses on studying past and present price action to predict the probability of Best Buy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Best Buy's price. Additionally, you may evaluate how the addition of Best Buy to your portfolios can decrease your overall portfolio volatility.