BBYNEUTRAL

EV/EBITDA

7.5x

Higher than 26% of Consumer Cyclical sector peers

Updated 174h ago

Sector Performance

26th percentile

BBY

7.5x

Sector Median

10.3x

Sector Avg

15.7x

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Deep Analysis

Best Buy’s current EV/EBITDA of 7.5x means its enterprise value (market cap plus debt minus cash) is 7.5 times its earnings before interest, taxes, depreciation, and amortization — a measure of how cheaply the company is valued relative to its operating profits.

This is well below the sector median of 13.2x, placing Best Buy in the 21st percentile among Consumer Cyclical peers, indicating it trades at a discount compared to most companies in its industry. The year-over-year change is not available, but the metric rose 6.8% quarter-over-quarter from 7.0x to 7.5x, showing a recent upward move in valuation. The combination of a low multiple with a rising trend could suggest an improving earnings outlook or a narrowing discount, which may reduce some downside risk but does not signal a strong opportunity. Given the neutral verdict on the stock, this metric supports that stance — the low EV/EBITDA aligns with a value perspective, while the recent uptick tempers the case for a clear bargain, reinforcing the balanced view.

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 7.5x compares to a Consumer Cyclical sector median of 10.3x, placing it in the 26th percentile.

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

The closest Consumer Cyclical peers by EV/EBITDA include: AEO (10.2x), APTV (10.3x), SKX (9.9x), CZR (8.9x), BALL (11.6x).

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.