BBYNEUTRAL

BBY PEG Ratio Analysis

0.31x

Higher than 40% of Consumer Cyclical sector peers

Updated 29h ago·SEC filings & market data

Key Takeaway

The PEG ratio, which compares a stock’s price-to-earnings multiple with its expected earnings growth rate, is 0.31x for Best Buy.

Sector Performance

40th percentile

BBY

0.31x

Sector Median

0.66x

Sector Avg

3.60x

Prior Period

0.03x(May 2026)

↓ Declining
📊

Deep Analysis

The PEG ratio, which compares a stock’s price-to-earnings multiple with its expected earnings growth rate, is 0.31x for Best Buy.

A value below 1.0x typically suggests the stock is priced low relative to its growth prospects. Best Buy’s 0.31x sits below the consumer cyclical sector median of 0.61x, and at the 40th percentile among sector peers, meaning about 60% of peers carry a higher PEG. The trend is not available: the year-over-year and quarter-over-quarter changes are both N/A, so no directional signal can be drawn from recent history. The low level alone points to a potential value opportunity, but the absence of trend data leaves that possibility unconfirmed. This metric supports the overall neutral verdict, as the cheap valuation is not enough to justify a bullish call when no momentum or change is observed.

Frequently Asked Questions

What does the PEG Ratio tell investors about BBY?

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

How is the PEG Ratio calculated?

PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.

How does BBY's PEG Ratio compare to its sector?

BBY's PEG Ratio of 0.31x compares to a Consumer Cyclical sector median of 0.66x, placing it in the 40th percentile.

Who are BBY's closest peers by PEG Ratio?

The closest Consumer Cyclical peers by PEG Ratio include: SKX (0.66x), AMCR (0.70x), AMZN (0.38x), BWA (1.14x), RH (0.18x).

The Formula

P/E Ratio / EPS Growth Rate

Why It Matters

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

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BBY

0.31x

Sector Median

0.66x

Sector Avg

3.60x

How BBY's PEG Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.