Best Buy Co Inc
NYSE:BBY
Decide at what price you'd be comfortable buying and we'll help you stay ready.
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EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (9.1), the stock would be worth $81.29 (34% upside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 6.8 | $60.45 |
0%
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| 3-Year Average | 9.1 | $81.29 |
+34%
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| 5-Year Average | 8.3 | $73.36 |
+21%
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| Industry Average | 18.7 | $166.3 |
+175%
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| Country Average | 19.6 | $174.45 |
+189%
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Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
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$12.9B
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/ |
Feb 2026
$1.8B
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= |
|
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$12.9B
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/ |
Jan 2027
$1.8B
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= |
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$12.9B
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/ |
Jan 2028
$1.9B
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= |
|
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$12.9B
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/ |
Jan 2029
$2.1B
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= |
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$12.9B
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/ |
Jan 2030
$2.1B
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= |
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$12.9B
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/ |
Jan 2031
$2.2B
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= |
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Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| US |
|
Best Buy Co Inc
NYSE:BBY
|
12.6B USD | 6.8 | 11.8 | |
| US |
|
GameStop Corp
NYSE:GME
|
11.2B USD | 22.3 | 26.7 | |
| JP |
|
Hikari Tsushin Inc
TSE:9435
|
1.7T JPY | 19.6 | 13.4 | |
| AU |
|
JB Hi-Fi Ltd
ASX:JBH
|
8.3B AUD | 11.4 | 17.2 | |
| VN |
M
|
Mobile World Investment Corp
VN:MWG
|
124.1T VND | 15.9 | 17.6 | |
| JP |
|
Yamada Holdings Co Ltd
TSE:9831
|
439.2B JPY | 17.6 | 18.5 | |
| DE |
|
Ceconomy AG
XETRA:CEC
|
2B EUR | 3.8 | -1 021.4 | |
| JP |
|
Nojima Corp
TSE:7419
|
364.2B JPY | 6 | 9.5 | |
| UK |
|
Currys PLC
LSE:CURY
|
1.5B GBP | 8.5 | 10.9 | |
| CN |
|
Suning.Com Co Ltd
SZSE:002024
|
12.5B CNY | -32.6 | 215.1 | |
| SA |
|
United Electronics Company JSC
SAU:4003
|
6.8B SAR | 9 | 13.7 |
Market Distribution
| Min | 0 |
| 30th Percentile | 13.6 |
| Median | 19.6 |
| 70th Percentile | 27.8 |
| Max | 1 826 183.2 |
Other Multiples
Best Buy Co Inc
Glance View
Best Buy Co Inc., the electronics retail giant, has carved its niche in the consumer electronics industry by providing a comprehensive selection of products, ranging from cutting-edge gadgets to household appliances. Founded in 1966, the company has matured from a small audio specialty store into a powerhouse of technology retail. It operates both through its extensive network of physical stores across North America and a thriving online platform, reflecting its successful adaptation to the changing retail landscape. With a customer-centric focus, Best Buy enhances its offerings through services like the Geek Squad, providing customer support and product repair, thus creating a value-added shopping experience that goes beyond mere product sales. At the core of Best Buy’s profitability lies its strategic ability to leverage its extensive supply chain relationships and its adept inventory management, which enable it to keep pace with rapid technological advancements. It generates revenue by not only selling products directly but also by offering installation, maintenance, and protection plans, which account for a significant portion of its income. Additionally, Best Buy excels in creating partnerships with major brands, allowing exclusive product launches and in-store experiences that draw customers in. The company’s success hinges on balancing competitive pricing with a strong emphasis on customer service, in-store experience, and strategic use of data analytics to inform product selections and marketing strategies.
