BBYNEUTRAL

BBY EV/EBITDA Analysis

7.3x

Higher than 26% of Consumer Cyclical sector peers

Updated 30h ago·SEC filings & market data

Key Takeaway

Best Buy’s EV/EBITDA of 7.7x means investors pay 7.7 times the company’s enterprise value—its market cap plus debt minus cash—relative to its earnings before interest, taxes, depreciation, and amortization.

Sector Performance

26th percentile

BBY

7.3x

Sector Median

10.0x

Sector Avg

15.5x

Prior Period

7.7x(Aug 2026)

↑ Improving

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Deep Analysis

That multiple sits below the sector median of 10.0x, placing Best Buy in the 32nd percentile among Consumer Cyclical peers, so it is cheaper than most. The trend is stable over the last eight quarters, with recent values of 7.7x, 8.1x, and 7.7x; quarter-over-quarter it fell 4.7%, while year-over-year change is not available. A below-median, stable multiple with a slight quarterly decline suggests limited downside from valuation compression, but also signals muted growth expectations rather than a clear bargain. For an investor, this combination implies modest risk from the multiple itself and a potential opportunity if earnings hold steady, though it does not point to a strong re-rating. This metric supports the overall NEUTRAL verdict, as the valuation is neither stretched enough to warrant caution nor discounted enough to imply an obvious buy.

Frequently Asked Questions

What does the EV/EBITDA tell investors about BBY?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does BBY's EV/EBITDA compare to its sector?

BBY's EV/EBITDA of 7.3x compares to a Consumer Cyclical sector median of 10.0x, placing it in the 26th percentile.

Who are BBY's closest peers by EV/EBITDA?

The closest Consumer Cyclical peers by EV/EBITDA include: SKX (9.9x), AEO (10.2x), APTV (10.3x), PHM (9.0x), CZR (9.0x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.