Stock fact sheet · data as of
Best Buy Co., Inc. (BBY): fair value, margin of safety and Wheel Score
Consumer Cyclical · Specialty Retail · United States · High Yield Income
Is BBY undervalued?
Best Buy Co., Inc. (BBY) closed at 94.17 on 16 Oct 2026, close to the GLS average fair value of 93.88 (exactly at fair value). 3 of the 9 models that produced a number sit above the price, 6 below - the market and our models roughly agree. With little margin of safety either way, the case for or against the stock rests on the quality numbers and the option premium rather than on price.
There is a wide gap between GLS Growth (10.66) and 10 Cap (231.75). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files BBY under High Yield Income: a dividend yield above 4%.
Nine valuation models for BBY
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 68.06 | -28% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 45.17 | -52% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 158.90 | +69% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 55.67 | -41% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 10.66 | -89% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 231.75 | +146% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 151.45 | +61% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 56.36 | -40% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 66.89 | -29% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -15.27 | -116% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 85.67 | -9% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Best Buy Co., Inc. scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. On durability BBY scores 5.5/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are high - ROIC 15.1%, ROE 36.1%, ROA 7.3% - with debt at 1.39 times equity and a free-cash-flow yield of 9.0%.
The dividend yield is high at 4.07% (payout ratio 63%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from United States 48%, Computing And Mobile Phones 22%, Consumer Electronics 13% (quarter Q2 FY2027).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 10/10 on the GLS smart-money scales; the last recorded insider buy was on 23 Sep 2026.
| Piotroski F-score | 8 / 9 | ROIC | 15.1% |
|---|---|---|---|
| GLS Moat | 5.5 / 10 | ROE | 36.1% |
| Debt / equity | 1.39 | ROA | 7.3% |
| Free-cash-flow yield | 9.0% | Payout ratio | 63% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 10 / 10 |
Wheel Score 78: Good
With a Wheel Score of 78 - the Good band - Best Buy Co., Inc. clears the Sunday Scan's "70 or higher" rule. The parts: Value 12/25, Health 18/20, Moat 8/15, Premium 20/20, Stability 20/20; Value (12/25) scores lowest.
Implied volatility is 42% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 106,828 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 4.4M shares a day on a market cap of $19.8B, with a beta of 1.28 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 12 / 25 | -0% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 8 / 15 | moat 5.5/10 | |
| Premium | 20 / 20 | implied volatility 42% | |
| Stability | 20 / 20 | 4.4M shares/day, $19.8B cap, beta 1.28 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 24 Nov 2026 (before the open), 39 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Specialty Retail
The 12 companies below are the closest to Best Buy Co., Inc. by market cap within the Specialty Retail industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| TSCO Tractor Supply Company | 32.74 | 21.97 | -49% | 67Good | $17.1B |
| CASY Casey's General Stores, Inc. | 673.63 | 330.95 | -104% | 64Fair | $24.9B |
| ULTA Ulta Beauty, Inc. | 592.42 | 476.96 | -24% | 61Fair | $25.5B |
| CPNG Coupang, Inc. | 14.79 | 9.90 | -49% | 45Weak | $26.6B |
| W Wayfair Inc. | 104.78 | 83.75 | -25% | 44Weak | $14.4B |
| GME GameStop Corp. | 28.02 | 38.65 | +28% | 72Good | $14.1B |
| WSM Williams-Sonoma, Inc. | 242.48 | 148.10 | -64% | 63Fair | $28.6B |
| DKS DICK'S Sporting Goods, Inc. | 140.84 | 163.52 | +14% | 76Good | $12.5B |
| FIVE Five Below, Inc. | 223.23 | 225.38 | +1% | 79Good | $12.3B |
| JD JD.com, Inc. | 27.39 | 114.53 | +76% | 88Prime | $37.0B |
| MUSA Murphy USA Inc. | 544.73 | 357.54 | -52% | 58Fair | $10.0B |
| CHWY Chewy, Inc. | 21.31 | 26.02 | +18% | 86Prime | $8.6B |
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Start free See the Sunday ScanQuestions about BBY
Is BBY undervalued right now?
Not meaningfully: at 94.17 the stock trades within a few percent of the GLS average fair value of 93.88 (exactly at fair value, data as of 16 Oct 2026).
What is the Wheel Score of BBY and what does it mean?
BBY scores 78 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for BBY?
93.88 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Best Buy Co., Inc. report earnings next?
The next earnings report is due on 24 Nov 2026 (before the open), 39 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does BBY have listed options, and how liquid are they?
Yes. The nightly snapshot found 1,000 listed contracts with 106,828 open interest across all expiries and implied volatility of 42% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.