Is Best Buy Co., Inc. overvalued or undervalued?

As of 28 November 2025, the valuation grade for Best Buy Co., Inc. has moved from very expensive to expensive, indicating a shift towards a less favorable valuation. The company appears to be overvalued based on its P/E ratio of 13, which is slightly lower than its peer's average P/E of 13.545, and an EV to EBITDA ratio of 6.20 compared to the peer average of 6.2951. Additionally, the Price to Book Value stands at 5.59, suggesting a premium valuation relative to its book value.
In comparison to its peers, Best Buy's high ROCE of 51.18% and ROE of 44.15% reflect strong profitability metrics, yet these do not fully offset the overvaluation indicated by the ratios. The company's recent performance has lagged significantly behind the S&P 500, with a year-to-date return of -7.60% compared to the S&P 500's 16.45%, reinforcing the notion that the stock may not be a favorable investment at its current price.