BBY FCF Yield Analysis
Higher than 58% of Consumer Cyclical sector peers
Updated 249h ago·SEC filings & market data
Key Takeaway
Best Buy’s free cash flow yield of 7.0% means that for every $100 of its share price, the company generates roughly $7 in annual free cash flow — the cash left after operating costs and capital spending.
Sector Performance
58th percentileBBY
7.0%
Sector Median
5.5%
Sector Avg
-3.3%
Prior Period
6.6%(Jul 2026)
Deep Analysis
Best Buy’s free cash flow yield of 7.0% means that for every $100 of its share price, the company generates roughly $7 in annual free cash flow — the cash left after operating costs and capital spending.
That is above the Consumer Cyclical sector median of 5.5%, placing the stock at the 58th percentile among peers, so it offers better cash return than most in its sector. The metric is stable: year-over-year change is not available, but quarter-over-quarter it rose by +6.1%, and the most recent three readings are 7.0%, 6.6%, and 7.0%. A high, stable cash flow yield suggests the company’s valuation is neither stretched nor deeply discounted, and the recent uptick adds a mild positive to the outlook. This combination implies moderate investment risk — the cash generation supports the stock, but there is no dramatic improvement to justify aggressive positioning. Overall, this metric supports the NEUTRAL verdict: the yield is solidly above the sector median but not extreme enough to push the stock beyond a balanced rating.
Frequently Asked Questions
What does the FCF Yield tell investors about BBY?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
How does BBY's FCF Yield compare to its sector?
BBY's FCF Yield of 7.0% compares to a Consumer Cyclical sector median of 5.5%, placing it in the 58th percentile.
Who are BBY's closest peers by FCF Yield?
The closest Consumer Cyclical peers by FCF Yield include: ABNB (5.6%), AMCR (5.5%), BALL (4.8%), PHM (7.3%), ROL (3.8%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master BBY's Valuation
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7.0%
Sector Median
5.5%
Sector Avg
-3.3%
How BBY's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.