Stock Updates

Is this Large Market Cap Stock target price reasonable for Best Buy Co., Inc. (NYSE:BBY)?

The company in question is, Best Buy Co., Inc. (NYSE:BBY) currently with a stock price of 32.15 (-0.40% today). The market cap for Best Buy Co., Inc. is 10587.84, and is in the sector Services, and Electronics Stores industry. The target price for Best Buy Co., Inc. is 33.13. Currently Best Buy Co., Inc. is trading with a P/E of 11.05, and a forward P/E of 10.46. Average volume for Best Buy Co., Inc. is 4927.79 and so far today it is 1297035.

Performance in the last year for Best Buy Co., Inc. has been 2.20%. For EPS growth, Best Buy Co., Inc. has seen a growth of -34.70%, and is looking to grow in the next year to 6.56%. More long term stats show that EPS growth has been -7.70% over the last five years and could be 10.99% for the next five years. Best Buy Co., Inc. has seen sales growth quarter over quarter at -1.30%, with EPS growth quarter over quarter at 568.60%. The 20-day simple moving average is 3.92%, with the 200-day simple moving average coming to 4.23%.

Since the IPO date for Best Buy Co., Inc. on the 4/19/1985, Best Buy Co., Inc. has seen performance year to date to be 9.39%. With Best Buy Co., Inc. trading at 32.15, the dividend yield is 3.47%, and the EPS is 2.92.

So could Best Buy Co., Inc., be undervalued? Well as said before P/E is 11.05. The PEG is 1.01, P/S is 0.27 and the P/B is at 2.36. The P/cash is 3.45, with P/free cash flow at 15.62.

Best Buy Co., Inc. ability to deal with debt shows that the current ratio is 1.5, and the quick ratio is 0.7. This is with long term debt/equity at 0.3, and total debt/equity at 0.31.

In terms of margins, Best Buy Co., Inc. has a gross margin of 23.60%, an operating margin of 4.20% and a profit margin of 2.50%.Payout ratio for Best Buy Co., Inc. is 32.90%. Return on assets come to 7.20% with return on investment coming to 14.30%.

Insider ownership for Best Buy Co., Inc., is at 1.00% and institutional ownership comes to 88.80%. Outstanding shares are at 328. While shares float is 277.7. The float short is currently 11.18%, and short ratio is 6.3.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Stephen Butters

Leave a Comment