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Best Buy (BBY) Stock Analysis

This is a peer-relative look at Best Buy (BBY): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Consumer Discretionary Distribution & Retail peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Best Buy (BBY)
Profile ItemBBY
NameBest Buy Co., Inc.
Country/RegionUnited States
GICS SectorConsumer Discretionary
GICS Industry GroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
GICS Sub-IndustryComputer & Electronics Retail
Market Capitalization20.90 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateApril 18, 1985
Security TypeCommon Stock

Price Performance

Cumulative Growth

BBY
GSPC
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Best Buy (BBY) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Best Buy (BBY) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Best Buy (BBY) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Best Buy (BBY) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: BBYIndustry group median
Total Return (1Y)41.84%9.80%
Total Return (3Y, Annualized)25.12%9.74%
Total Return (5Y, Annualized)0.22%-0.72%

Risk Profile

Drawdown History

BBY
GSPC
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Best Buy (BBY) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Best Buy (BBY) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Best Buy (BBY) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: BBYIndustry group median
Volatility (1Y, Annualized)39.78%48.29%
Beta (5Y)1.141.08
Max Drawdown (5Y)-52.60%-68.45%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. BBY is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Best Buy (BBY) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: BBYIndustry group median
Sharpe Ratio (1Y)0.940.10
Sortino Ratio (1Y)1.610.16

Profitability

ROE (TTM)

Best Buy (BBY) posts ROE of 43.13%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

BBY

Consumer Discretionary Distribution & Retail industry group

43.13%

Group distribution
Max
62.17%
BBY
43.13%
Q3
29.44%
Median
15.69%
Q1
6.73%
Min
-12.16%
Largest peers
HD
104.30%
TJX
62.17%
BBY
43.13%
AMZN
27.42%
PDD
22.75%
BABA
6.36%
LOW
--
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Where Best Buy (BBY) stands on ROE within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Best Buy (BBY) keeps 3.01% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

BBY

Consumer Discretionary Distribution & Retail industry group

3.01%

Group distribution
Max
16.94%
Q3
8.69%
Median
3.55%
BBY
3.01%
Q1
1.14%
Min
-9.41%
Largest peers
PDD
20.43%
AMZN
16.90%
TJX
9.73%
HD
8.41%
LOW
7.35%
BABA
7.04%
BBY
3.01%
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Where Best Buy (BBY) stands on net margin within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Best Buy (BBY) turns 3.90% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

BBY

Consumer Discretionary Distribution & Retail industry group

3.90%

Group distribution
Max
21.45%
Q3
10.89%
Median
5.57%
BBY
3.90%
Q1
2.28%
Min
-7.12%
Largest peers
PDD
24.71%
AMZN
13.90%
LOW
13.37%
HD
12.86%
TJX
10.91%
BABA
7.30%
BBY
3.90%
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Where Best Buy (BBY) stands on operating margin within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Best Buy (BBY) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: BBYIndustry group median
ROE (TTM)43.13%15.69%
ROA (TTM)7.25%5.18%
Net Margin (TTM)3.01%3.55%
Operating Margin (TTM)3.90%5.57%
Gross Margin (TTM)22.60%38.87%

Growth

Revenue Growth

Best Buy (BBY) grew revenue 0.39%, in the lower peer quartile. The top line is expanding more slowly than at most peers, which can reflect softer demand, lost share, or weaker pricing.

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Best Buy (BBY): Revenue Growth across different time periods, set against Consumer Discretionary Distribution & Retail industry-group medians.

EPS Growth

Best Buy (BBY) grew earnings per share 17.76%, in the upper peer quartile. Per-share profits are compounding faster than at most industry peers.

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Best Buy (BBY): EPS Growth across different time periods, set against Consumer Discretionary Distribution & Retail industry-group medians.

Growth Metrics

Best Buy (BBY) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: BBYIndustry group median
Revenue Growth (YoY)0.39%5.64%
Revenue Growth (3Y CAGR)-3.43%3.32%
EPS Growth (YoY)17.76%0.28%
EPS Growth (3Y CAGR)-7.12%-5.08%

Financial Strength

Current Ratio (MRQ)

Best Buy (BBY) has current ratio of 1.12, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

BBY

Consumer Discretionary Distribution & Retail industry group

1.12

Group distribution
Max
2.62
Q3
1.75
Median
1.35
BBY
1.12
Q1
1.00
Min
0.48
Largest peers
PDD
2.62
BABA
1.36
TJX
1.15
BBY
1.12
LOW
1.11
HD
1.08
AMZN
0.99
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Where Best Buy (BBY) stands on current ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Best Buy (BBY) has debt-to-equity ratio of 1.30, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

BBY

Consumer Discretionary Distribution & Retail industry group

1.30

Group distribution
Max
3.93
Q3
2.14
BBY
1.30
Median
1.25
Q1
0.73
Min
0.01
Largest peers
HD
3.80
TJX
1.34
BBY
1.30
AMZN
0.50
BABA
0.24
PDD
0.01
LOW
--
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Where Best Buy (BBY) stands on debt-to-equity ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Best Buy (BBY) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: BBYIndustry group median
Current Ratio (MRQ)1.121.35
Debt / Equity (MRQ)1.301.25
Net Debt / EBITDA0.662.50

Dividends

Dividend Yield (TTM)

Best Buy (BBY) has dividend yield of 3.84%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.

BBY

Consumer Discretionary Distribution & Retail industry group

3.84%

Group distribution
Max
5.84%
BBY
3.84%
Q3
2.50%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
BABA
6.70%
BBY
3.84%
LOW
2.13%
HD
1.32%
TJX
1.31%
AMZN
0.00%
PDD
0.00%
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Where Best Buy (BBY) stands on dividend yield within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Best Buy (BBY) has payout ratio of 63.56%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

BBY

Consumer Discretionary Distribution & Retail industry group

63.56%

Group distribution
Max
72.73%
BBY
63.56%
Q3
32.44%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
HD
64.80%
BBY
63.56%
LOW
41.00%
TJX
32.50%
BABA
25.44%
AMZN
0.00%
PDD
0.00%
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Where Best Buy (BBY) stands on payout ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Best Buy (BBY) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: BBYIndustry group median
Dividend Yield (TTM)3.84%0.00%
Dividend Payout Ratio (TTM)63.56%0.00%

Valuation

P/E Ratio (TTM)

Best Buy (BBY) trades at P/E ratio of 16.58, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

BBY

Consumer Discretionary Distribution & Retail industry group

16.58

Group distribution
Max
40.50
Q3
24.26
Median
19.23
BBY
16.58
Q1
12.64
Min
4.67
Largest peers
BABA
26.50
TJX
25.06
HD
24.04
AMZN
20.96
LOW
18.98
BBY
16.58
PDD
9.34
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Where Best Buy (BBY) stands on P/E ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Best Buy (BBY) trades at 0.50 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

BBY

Consumer Discretionary Distribution & Retail industry group

0.50

Group distribution
Max
4.32
Q3
1.99
Median
0.70
BBY
0.50
Q1
0.26
Min
0.03
Largest peers
AMZN
3.52
TJX
2.39
HD
2.03
LOW
1.39
BBY
0.50
PDD
0.26
BABA
0.26
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Where Best Buy (BBY) stands on P/S ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Best Buy (BBY) trades at 6.59 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

BBY

Consumer Discretionary Distribution & Retail industry group

6.59

Group distribution
Max
10.96
BBY
6.59
Q3
5.26
Median
2.16
Q1
1.08
Min
-4.45
Largest peers
HD
20.63
TJX
13.99
BBY
6.59
AMZN
4.57
PDD
1.74
BABA
1.63
LOW
-16.94
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Where Best Buy (BBY) stands on P/B ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Best Buy (BBY) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: BBYIndustry group median
P/E Ratio (TTM)16.5819.23
P/S Ratio (TTM)0.500.70
P/B Ratio (MRQ)6.592.16
Free Cash Flow Yield (TTM)6.72%3.57%