Is Best Buy Co., Inc. overvalued or undervalued?
2025-12-01 11:05:29As 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....
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2025-11-30 11:05:52As 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 assessment. The company appears to be overvalued based on its current metrics, with a P/E ratio of 13, a Price to Book Value of 5.59, and an EV to EBITDA of 6.20. In comparison, its peer, which has a P/E of 13.545 and an EV to EBITDA of 6.2951, suggests that Best Buy is trading at a slight discount relative to its closest competitor. Despite the high ROCE of 51.18% and ROE of 44.15%, which reflect strong profitability, the overall valuation ratios indicate that the stock is priced too high given its performance. Additionally, Best Buy has underperformed the S&P 500 significantly over multiple periods, with a YTD 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....
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