Ticker League

Fair Value for Best Buy Co. (BBY)

See growth priced into Best Buy Co. (BBY): reverse DCF, implied rate vs history and analysts, FCF view. Free intrinsic value calculator for education.

Fair value (multi-method)

Four independent methods triangulate what BBY is worth. The headline is the Forward-DCF intrinsic value at a normalized growth rate; the margin of safety compares it to the current price.

Estimated fair value (Forward DCF)

$37.57

Above fair value
-90.42% vs current price $71.54

Method range

$20.80 $78.38

median $56.98

Methods disagree

Valuation methods

Each method’s implied fair value per share and its upside versus the current price. Missing methods (no analyst coverage, negative earnings, etc.) are shown as “—”.

  • Forward DCF$37.57
  • Exit multiple$78.38
  • Analyst target$76.40
  • Graham number$20.80

Stock price

$71.54

FCF / share (TTM)

$1.02

3Y FCF CAGR

-12.4%

Fair value @ hist. growth

$4.69

This analysis is for informational purposes only and is not financial advice. Scenario prices and DCF-style figures depend on your assumptions and data from public filings and estimates. They are not forecasts of future returns.

Implied FCF growth

26.7%

per year over your projection horizon

Premium vs DCF

Margin of safety -1425.4% vs hist-growth DCF

Historical 3Y CAGR

-12.4%

Your model implies

26.7%

Analyst consensus is EPS-only — no comparable FCF / share estimate to show on this basis.

Model inputs

Move sliders to test how the reverse DCF reacts. Historical-growth markers show where the company has actually grown over the last cycle.

Discount rate (cost of equity proxy)10.8%
Terminal growth2.50%
Projection years10 yr
FCF growth per year (supplemental projection)-12%

Undiscounted FCF per share over 10 years at -12% annual growth.

Sensitivity — implied growth vs your assumptions

Each cell shows the per-share growth rate the market would need to justify the current price at that combination of discount rate (rows) and terminal growth (columns). Your selected inputs are highlighted.

Row axis: discount rate. Column axis: terminal growth.Terminal g →↓ Discount1.5%2.0%2.5%3.0%3.5%
8.8%23.3%22.6%21.8%20.9%20.0%
9.8%25.7%25.0%24.3%23.6%22.8%
10.8%27.9%27.3%26.7%26.1%25.4%
11.8%30.0%29.5%29.0%28.4%27.8%
12.8%32.1%31.6%31.1%30.6%30.0%
Color≤ historical CAGRModerate premiumHigh premium (≥ 15pp above hist)Your inputs

Historical multiples

Each bar is the trailing five-year range (low left, high right). Filled portion runs from low to today; the dot marks today; the small tick marks the five-year median. Low, median, and high are listed under each bar.

P/EToday12.8
5Y low9.8
Median13.3
5Y high19.9
P/SToday0.3· at low
5Y low0.3
Median0.4
5Y high0.5
EV/EBITDAToday7.1
5Y low6.4
Median7.3
5Y high9.5

Net debt

$2.4B

Total debt − cash

Beta

1.25

Vs market benchmark

Frequently asked questions