What is Best Buy Co PE Ratio (TTM)?
The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2024-09-13), Best Buy Co's share price is $98.45. Best Buy Co's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jul. 2024 was $5.80. Therefore, Best Buy Co's PE Ratio (TTM) for today is 16.97.
The historical rank and industry rank for Best Buy Co's PE Ratio (TTM) or its related term are showing as below:
BBY' s PE Ratio (TTM) Range Over the Past 10 Years
Min: 7.41 Med: 13.19 Max: 23.49
Current: 16.97
During the past 13 years, the highest PE Ratio (TTM) of Best Buy Co was 23.49. The lowest was 7.41. And the median was 13.19.
BBY's PE Ratio (TTM) is ranked better than
51.66% of 755 companies
in the Retail - Cyclical industry
Industry Median: 17.58 vs BBY: 16.97
Best Buy Co's Earnings per Share (Diluted) for the threemonths ended in Jul. 2024 was $1.34. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jul. 2024 was $5.80.
As of today (2024-09-13), Best Buy Co's share price is $98.45. Best Buy Co's EPS without NRI for the trailing twelve months (TTM) ended in Jul. 2024 was $6.55. Therefore, Best Buy Co's PE Ratio without NRI for today is 15.03.
During the past 13 years, Best Buy Co's highest PE Ratio without NRI was 19.37. The lowest was 7.13. And the median was 12.72.
Best Buy Co's EPS without NRI for the threemonths ended in Jul. 2024 was $1.34. Its EPS without NRI for the trailing twelve months (TTM) ended in Jul. 2024 was $6.55.
During the past 12 months, Best Buy Co's average EPS without NRI Growth Rate was 3.00% per year.During the past 3 years, the average EPS without NRI Growth Rate was -7.00% per year.During the past 5 years, the average EPS without NRI Growth Rate was 4.70% per year.During the past 10 years, the average EPS without NRI Growth Rate was 15.20% per year.
During the past 13 years, Best Buy Co's highest 3-Year average EPS without NRI Growth Rate was 465.90% per year. The lowest was -67.50% per year. And the median was 19.55% per year.
Best Buy Co's EPS (Basic) for the threemonths ended in Jul. 2024 was $1.35. Its EPS (Basic) for the trailing twelve months (TTM) ended in Jul. 2024 was $5.83.
Best Buy Co PE Ratio (TTM) Historical Data
The historical data trend for Best Buy Co's PE Ratio (TTM) can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
Best Buy Co PE Ratio (TTM) Chart
Best Buy Co Annual Data | ||||||||||||||||||||
Trend | Jan15 | Jan16 | Jan17 | Jan18 | Jan19 | Jan20 | Jan21 | Jan22 | Jan23 | Jan24 | ||||||||||
PE Ratio (TTM) | Get a 7-Day Free Trial | 14.73 | 15.91 | 10.09 | 14.10 | 12.76 |
Best Buy Co Quarterly Data | ||||||||||||||||||||
Oct19 | Jan20 | Apr20 | Jul20 | Oct20 | Jan21 | Apr21 | Jul21 | Oct21 | Jan22 | Apr22 | Jul22 | Oct22 | Jan23 | Apr23 | Jul23 | Oct23 | Jan24 | Apr24 | Jul24 | |
PE Ratio (TTM) | Get a 7-Day Free Trial | 14.29 | 11.52 | 12.76 | 12.90 | 14.92 |
Competitive Comparison of Best Buy Co's PE Ratio (TTM)
For the Specialty Retail subindustry, Best Buy Co's PE Ratio (TTM), along with its competitors' market caps and PE Ratio (TTM) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Best Buy Co's PE Ratio (TTM) Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Best Buy Co's PE Ratio (TTM) distribution charts can be found below:
* The bar in red indicates where Best Buy Co's PE Ratio (TTM) falls into.
Best Buy Co PE Ratio (TTM) Calculation
The PE Ratio (TTM), or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.
Best Buy Co's PE Ratio (TTM) for today is calculated as
PE Ratio (TTM) | = | Share Price | / | Earnings per Share (Diluted) (TTM) |
= | 98.45 | / | 5.800 | |
= | 16.97 |
Best Buy Co's Share Price of today is $98.45.
Best Buy Co's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jul. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $5.80.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
It can also be calculated from the numbers for the whole company:
PE Ratio (TTM) | = | Market Cap | / | Net Income |
There are at least three kinds of PE Ratio (TTM)s used by different investors. They are Trailing Twelve Month PE Ratio (TTM) or PE Ratio (TTM) (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio (TTM) based on inflation-adjusted normalized PE Ratio (TTM) is called Shiller PE Ratio, after Yale professor Robert Shiller.
In the calculation of PE Ratio (TTM), the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.
Best Buy Co(NYSE:BBY) PE Ratio (TTM) Explanation
The PE Ratio (TTM) can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio (TTM) is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.
In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio (TTM) is positive. Also for stocks with the same PE Ratio (TTM), the one with faster growth business is more attractive.
If a company loses money, the PE Ratio (TTM) becomes meaningless.
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio (TTM) divided by the growth ratio. He thinks a company with a PE Ratio (TTM) equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio (TTM) of 20, instead of a company growing 10% a year with a PE Ratio (TTM) of 10.
Because the PE Ratio (TTM) measures how long it takes to earn back the price you pay, the PE Ratio (TTM) can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.
Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio (TTM) measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.
Be Aware
Investors need to be aware that the PE Ratio (TTM) can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratio (TTM)s are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio (TTM) is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .
PE Ratio (TTM) can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio (TTM).
Best Buy Co PE Ratio (TTM) Related Terms
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Best Buy Co Business Description
Industry
GURUFOCUS.COM »STOCK LIST »Consumer Cyclical » Retail - Cyclical » Best Buy Co Inc (NYSE:BBY) » Definitions » PE Ratio (TTM)
Comparable Companies
DKS ULTA WSM CASY MUSA GME TSCO BBWI RH MNSO ORLY TSX:ATD AZO SHSE:601888 ADX:ADNOCDIST TSX:CTC.A TSE:8136 XSWX:AVOL ASX:JBH LSE:FRAS
Traded in Other Exchanges
BBY:Mexico 0R18:UK BUY:Germany BUY:Germany BBYY34:Brazil
Address
7601 Penn Avenue South, Richfield, MN, USA, 55423
With $46.3 billion in consolidated fiscal 2023 sales, Best Buy is the largest pure-play consumer electronics retailer in the U.S., boasting roughly 8.5% share of the U.S. market and north of 35% share of offline sales, per our calculations, CTA, and Euromonitor data. The firm generates the bulk of its sales in-store, with mobile phones and tablets, computers, and appliances representing its three largest categories. Recent investments in e-commerce fulfillment, accelerated by the COVID-19 pandemic, have seen the U.S. e-commerce channel roughly double from prepandemic levels, with management estimating that it will represent a mid-30% proportion of sales moving forward.
Executives
Richard M Schulze | 10 percent owner | BEST BUY CO INC, 7075 FLYING CLOUD DRIVE, EDEN PRAIRIE MN 55344 |
Todd G. Hartman | officer: GC, Chief Risk/Comp Officer | 7601 PENN AVENUE SOUTH, RICHFIELD MN 55423 |
David C Kimbell | director | 8410 W. BRYN MAWR, CHICAGO IL 60631 |
Kathleen Scarlett | officer: Chief Human Resources Officer | 7601 PENN AVE S, RICHFIELD MN 55423 |
Jason J Bonfig | officer: Chief Merchandising Officer | 7601 PENN AVENUE SOUTH, RICHFIELD MN 55423 |
Matthew M Bilunas | officer: Chief Financial Officer | C/O BEST BUY CO., INC., 7601 PENN AVENUE SOUTH, RICHFIELD MN 55423 |
Barry Corie S | officer: CFO | 7601 PENN AVE S., RICHFIELD MN 55423 |
Mathew Watson | officer: VP, Finance - Contr. & CAO | 7601 PENN AVENUE SOUTH, RICHFIELD MN 55423 |
Damien Harmon | officer: Pres., Omnichannel Ops & Serv | 7601 PENN AVENUE SOUTH, RICHFIELD MN 55423 |
Sima Sistani | director | 675 AVENUE OF THE AMERICAS, 6TH FLOOR, NEW YORK NY 10010 |
Melinda D Whittington | director | THREE LAKES DRIVE, NORTHFIELD IL 60093 |
Deborah Disanzo | officer: President, Best Buy Health | 7601 PENN AVENUE SOUTH, RICHFIELD MN 55423 |
Allison Peterson | officer: Chief Customer Officer | 7601 PENN AVENUE SOUTH, RICHFIELD MN 55423 |
Brian A Tilzer | officer: Chief Digital & Tech Officer | CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM11 |
Mark A Irvin | officer: Chief Supply Chain Officer | 7601 PENN AVENUE, RICHFIELD MN 55423 |
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