What Is BBY Fair Value?
Best Buy (BBY) fair value estimate using multiple valuation models, updated daily.
As of August 29, 2026, Best Buy (BBY) has a composite fair value estimate of $65.00 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $82.44, suggesting the stock is overvalued by 21.1%.
Data as of August 29, 2026 (today)
Composite Fair Value
Overvalued4 of 4 models$65.00
vs. current price of $82.44(-21.1%)
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 →
$73.61
-10.7%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 →
$42.59
-48.3%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 →
$47.28
-42.7%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.
$65.94
-20.0%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 $82.44 is 10.7% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $1.33B | $1.21B |
| Year 2 | $1.40B | $1.15B |
| Year 3 | $1.47B | $1.10B |
| Year 4 | $1.54B | $1.04B |
| Year 5 | $1.62B | $995.2M |
| Year 6 | $1.70B | $947.9M |
| Year 7 | $1.79B | $902.8M |
| Year 8 | $1.88B | $859.9M |
| Year 9 | $1.97B | $819.0M |
| Year 10 | $2.07B | $780.1M |
| Terminal Value | $27.38B | $10.32B |
What Are BBY's Key Financial Metrics?
Earnings & Growth
Current Price
$82.44
EPS (TTM)
$5.93
Forward P/E
11.6
Profit Margin
3.0%
Cash & Balance Sheet
Free Cash Flow
1.3B
EBITDA
2.7B
Book Value
$15.06
Total Debt
4.1B
What Do Analysts Say About BBY?
Low
$62.00
Average
$83.40
High
$95.00
Upside
+1.2%
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 $65.00. The stock is currently trading at $82.44, 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 $82.44 is 21.1% above our estimated fair value of $65.00.
What do Wall Street analysts say about BBY?
20 analysts cover Best Buy with a consensus rating of "Hold." The average price target is $83.40, ranging from $62.00 to $95.00. This implies 1.2% upside from the current price.