What Is BBY Fair Value?
Best Buy (BBY) fair value estimate using multiple valuation models, updated daily.
As of October 14, 2026, Best Buy (BBY) has a composite fair value estimate of $73.29 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $87.96, suggesting the stock is overvalued by 16.7%.
Data as of October 14, 2026 (today)
Composite Fair Value
Overvalued4 of 4 models$73.29
vs. current price of $87.96(-16.7%)
How Is BBY Fair Value Calculated?
Four independent models estimate what BBY is worth. Each uses different inputs and assumptions. The composite blends them by weight.
BBY Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
35% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$90.51
+2.9%Fair Value
Inputs used
DDM (Dividend Discount Model)
15% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
$46.01
-47.7%Overvalued
Inputs used
BBY Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
25% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$48.21
-45.2%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
25% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$68.28
-22.4%Overvalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $87.96 is 2.9% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $1.49B | $1.35B |
| Year 2 | $1.57B | $1.30B |
| Year 3 | $1.67B | $1.25B |
| Year 4 | $1.77B | $1.20B |
| Year 5 | $1.87B | $1.15B |
| Year 6 | $1.98B | $1.11B |
| Year 7 | $2.10B | $1.07B |
| Year 8 | $2.22B | $1.02B |
| Year 9 | $2.35B | $985.5M |
| Year 10 | $2.49B | $947.6M |
| Terminal Value | $33.37B | $12.68B |
What Are BBY's Key Financial Metrics?
Earnings & Growth
Current Price
$87.96
EPS (TTM)
$6.01
Forward P/E
12.2
Profit Margin
3.0%
Cash & Balance Sheet
Free Cash Flow
1.4B
EBITDA
2.6B
Book Value
$15.13
Total Debt
4.1B
What Do Analysts Say About BBY?
Low
$71.00
Average
$86.95
High
$100.00
Upside
-1.1%
BBY Fair Value FAQ
What is the fair value of BBY?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), BBY's estimated fair value is $73.29. The stock is currently trading at $87.96, which makes it overvalued by our analysis.
How is BBY's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is BBY overvalued or undervalued?
Based on our analysis, BBY is overvalued. The current price of $87.96 is 16.7% above our estimated fair value of $73.29.
What do Wall Street analysts say about BBY?
20 analysts cover Best Buy with a consensus rating of "Hold." The average price target is $86.95, ranging from $71.00 to $100.00. This implies 1.1% downside from the current price.