Latest Ratios: P/E Ratio 15.6x · EV/EBITDA 8.6x · ROE 37.0%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $16.6B | $13.8B | $18.6B | $16.5B | $19.2B | $24.3B | $28.6B | $22.7B | $16.5B | $21.9B | $14.0B |
| Enterprise Value | $19.0B | $16.2B | $21.1B | $19.1B | $21.3B | $25.3B | $27.1B | $24.5B | $15.9B | $22.1B | $13.1B |
| P/E Ratio → | 15.62 | 12.92 | 20.06 | 13.33 | 13.54 | 9.92 | 15.91 | 14.73 | 11.24 | 21.85 | 11.41 |
| P/S Ratio | 0.40 | 0.33 | 0.45 | 0.38 | 0.42 | 0.47 | 0.61 | 0.52 | 0.38 | 0.52 | 0.36 |
| P/B Ratio | 5.63 | 4.66 | 6.62 | 5.42 | 6.88 | 8.06 | 6.24 | 6.53 | 4.98 | 6.06 | 2.98 |
| P/FCF | 13.18 | 10.98 | 13.36 | 24.50 | 21.50 | 9.68 | 6.79 | 12.46 | 10.35 | 15.06 | 7.14 |
| P/OCF | 8.45 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 8.55 | 7.30 | 8.15 | 7.64 | 7.86 | 6.56 | 8.40 | 8.67 | 5.94 | 8.76 | 5.24 |
| EV / EBIT | 13.67 | 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 |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 |
Short-term solvency ratios and asset-utilisation metrics
| 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 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | 4.8% | 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% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.4% | 7.7% | 5.0% | 7.5% | 7.4% | 10.1% | 6.3% | 6.8% | 8.9% | 4.6% | 8.8% |
| FCF Yield | 7.6% | 9.1% | 7.5% | 4.1% | 4.7% | 10.3% | 14.7% | 8.0% | 9.7% | 6.6% | 14.0% |
| Buyback Yield | 1.6% | 2.0% | 2.7% | 2.1% | 5.3% | 14.4% | 1.1% | 4.4% | 9.1% | 9.2% | 5.0% |
| Total Shareholder Yield | 6.4% | 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 |
Discretionary spending sensitivity
Based on current market data, Best Buy trades at a TTM P/E of 15.42, which appears to discount the company as a mature, low-growth retailer rather than a high-growth technology platform, especially when compared to the broader retail sector's valuation multiples.
The forward P/E of 11.87 suggests that investors are pricing in limited earnings expansion, likely reflecting skepticism regarding the company's ability to decouple from cyclical hardware refresh cycles. This valuation level warrants investigation into whether the market is adequately accounting for the potential long-term margin benefits of the 'Best Buy Health' initiative.
As reported in financial statements, Best Buy's ROIC has fluctuated between 2.8% and 7.1% over the last ten quarters, indicating that the company is struggling to consistently generate returns on invested capital that meaningfully exceed its cost of capital.
The volatility in ROIC appears driven by the company's heavy reliance on low-margin hardware sales and the significant capital intensity required to maintain its physical store-as-a-hub infrastructure. Investors should monitor whether future investments in healthcare services can improve these returns or if the core retail business will continue to drag on overall capital efficiency.
According to recent quarterly filings, Best Buy's cash conversion cycle has remained tight, oscillating between 9 and 16 days, which highlights the company's reliance on efficient inventory management to offset the thin margins inherent in the consumer electronics retail model.
The fluctuation in days inventory outstanding, which peaked at 85 days in 2026Q3, suggests that the company is highly sensitive to seasonal demand shifts and the risk of inventory obsolescence. This efficiency profile implies that any disruption in the supply chain or a slowdown in consumer demand could rapidly impair the company's cash position.
Based on reported figures, Best Buy maintains a debt-to-EBITDA ratio that has fluctuated between 5.09 and 18.86 over the last ten quarters, suggesting that while the absolute debt load is stable, the company's ability to service that debt is highly sensitive to quarterly earnings volatility.
The interest coverage ratio, which has seen significant swings, indicates that the company's financial flexibility is constrained by its thin operating margins. While the current debt levels appear manageable, the lack of consistent earnings growth may limit the company's capacity to take on additional leverage for strategic pivots.
The most commonly misapplied metric for Best Buy is the traditional P/S ratio, which obscures the company's transition toward service-based revenue streams and its unique role as a physical showroom for major technology OEMs.
Using a standard retail P/S multiple fails to account for the higher-margin potential of the 'My Best Buy Total' membership and the 'Best Buy Health' segment. Analysts should instead focus on service-attach rates and membership retention metrics to better understand the company's true long-term earning power.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying BBY stock.
Best Buy Co., Inc.'s current P/E ratio is 15.6x. The historical average is 20.5x. This places it at the 52th percentile of its historical range.
Best Buy Co., Inc.'s current EV/EBITDA is 8.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.9x.
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%.
Based on historical data, Best Buy Co., Inc. is trading at a P/E of 15.6x. This is at the 52th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Best Buy Co., Inc.'s current dividend yield is 4.80% with a payout ratio of 74.9%.
Best Buy Co., Inc. has 22.5% gross margin and 3.3% operating margin.
Best Buy Co., Inc.'s Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.