Best Buy operates as a retailer of technology products - television and home theaters,digital cameras and camcorders, DVD and Blu-ray players, car stereo, navigation and satellite radio and related accessories, and services - Geek squad handles computer repair, other tech services, installations, etc. in the United States and internationally. The company was founded in 1966 and is based in Richfield, Minnesota.
BBY Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for BBY, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Best Buy Co Inc ranked in the 75th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 343.17% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for BBY, they are:
BBY's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 32.6% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Cyclical), Best Buy Co Inc has a reliance on debt greater than just 14.63% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Best Buy Co Inc? See UFAB, LEE, HTHT, SALM, and SIG.
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