DCF Tool


Best Buy Co. Inc. – Electronics Stores
best buy is a leading provider of technology products, services and solutions. the company offers expert service at an unbeatable price more than 1.5 billion times a year to the consumers, small business owners and educators who visit our stores, engage with geek squad agents or use bestbuy.com or the best buy app. the company has operations in the u.s and canada, where more than 70 percent of the population lives within 15 minutes of a best buy store, as well as in mexico where best buy has a physical and online presence. as for our workforce, our employees’ knowledge, passion and commitment are recognized through pay, benefits and other rewards that are among the best in the industry, including an industry-leading employee discount on the latest and greatest products. to learn more about opportunities at best buy follow us on twitter @bestbuy_careers and check out our career site http://www.bestbuy-jobs.com/
Analysis Results
Intrinsic Value $817.29
Latest Price $74.53
Relative Value 91% undervalued
Thoughts on this result? Let us know.
Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 20.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 20.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 3.15 3.02
2024 3.8 3.5
2025 4.6 4.06
2026 5.56 4.71
2027 6.72 5.46
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 201 billion. This corresponds to a present value of 157 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 20.7 billion. Adding in the terminal value gives a total present value of 178 billion.

There are presently 218.0 million outstanding shares, so the intrinsic value per share is 817.29.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 8,802,000,000
Current Cash 1,874,000,000
Current Liabilities 8,979,000,000
Current Debt 16,000,000
Non-Cash Working Capital (NCWC) -2,035,000,000
Change in NCWC 1,023,000,000
EBIT 1,943,000,000
Tax Provision 370,000,000
Depreciation and Amortization 918,000,000
Capital Expenditure -930,000,000
Unlevered Free Cash Flow 2,552,149,804
Current Assets 10,539,000,000
Current Cash 2,936,000,000
Current Liabilities 10,674,000,000
Current Debt 13,000,000
Non-Cash Working Capital (NCWC) -3,058,000,000
Change in NCWC 293,000,000
EBIT 3,009,000,000
Tax Provision 574,000,000
Depreciation and Amortization 869,000,000
Capital Expenditure -737,000,000
Unlevered Free Cash Flow 2,863,601,717
Current Assets 12,540,000,000
Current Cash 5,494,000,000
Current Liabilities 10,521,000,000
Current Debt 124,000,000
Non-Cash Working Capital (NCWC) -3,351,000,000
Change in NCWC -1,933,000,000
EBIT 2,645,000,000
Tax Provision 579,000,000
Depreciation and Amortization 839,000,000
Capital Expenditure -713,000,000
Unlevered Free Cash Flow 193,719,394
Current Assets 8,857,000,000
Current Cash 2,229,000,000
Current Liabilities 8,060,000,000
Current Debt 14,000,000
Non-Cash Working Capital (NCWC) -1,418,000,000
Change in NCWC -851,000,000
EBIT 2,050,000,000
Tax Provision 452,000,000
Depreciation and Amortization 812,000,000
Capital Expenditure -743,000,000
Unlevered Free Cash Flow 803,072,754
Current Assets 8,870,000,000
Current Cash 1,980,000,000
Current Liabilities 7,513,000,000
Current Debt 56,000,000
Non-Cash Working Capital (NCWC) -567,000,000
Change in NCWC 10,000,000
EBIT 1,946,000,000
Tax Provision 424,000,000
Depreciation and Amortization 770,000,000
Capital Expenditure -819,000,000
Unlevered Free Cash Flow 1,469,974,576
Current Assets 9,829,000,000
Current Cash 3,133,000,000
Current Liabilities 7,817,000,000
Current Debt 544,000,000
Non-Cash Working Capital (NCWC) -577,000,000
Change in NCWC -94,000,000
EBIT 1,853,000,000
Tax Provision 818,000,000
Depreciation and Amortization 683,000,000
Capital Expenditure -688,000,000
Unlevered Free Cash Flow 919,793,065
Current Assets 10,516,000,000
Current Cash 3,921,000,000
Current Liabilities 7,122,000,000
Current Debt 44,000,000
Non-Cash Working Capital (NCWC) -483,000,000
Change in NCWC -558,000,000
EBIT 1,893,000,000
Tax Provision 609,000,000
Depreciation and Amortization 654,000,000
Capital Expenditure -582,000,000
Unlevered Free Cash Flow 772,177,863
Current Assets 9,886,000,000
Current Cash 3,281,000,000
Current Liabilities 6,925,000,000
Current Debt 395,000,000
Non-Cash Working Capital (NCWC) 75,000,000
Change in NCWC -30,000,000
EBIT 1,576,000,000
Tax Provision 503,000,000
Depreciation and Amortization 657,000,000
Capital Expenditure -649,000,000
Unlevered Free Cash Flow 948,864,122
Current Assets 11,729,000,000
Current Cash 3,888,000,000
Current Liabilities 7,777,000,000
Current Debt 41,000,000
Non-Cash Working Capital (NCWC) 105,000,000
Change in NCWC -150,000,000
EBIT 1,455,000,000
Tax Provision 141,000,000
Depreciation and Amortization 656,000,000
Capital Expenditure -561,000,000
Unlevered Free Cash Flow 1,252,087,238
Current Assets 10,485,000,000
Current Cash 2,901,000,000
Current Liabilities 7,436,000,000
Current Debt 107,000,000
Non-Cash Working Capital (NCWC) 255,000,000
Change in NCWC -591,000,000
EBIT 1,299,000,000
Tax Provision 398,000,000
Depreciation and Amortization 716,000,000
Capital Expenditure -547,000,000
Unlevered Free Cash Flow 401,377,184
Current Assets 10,297,000,000
Current Cash 1,199,000,000
Current Liabilities 8,855,000,000
Current Debt 603,000,000
Non-Cash Working Capital (NCWC) 846,000,000
Change in NCWC -894,000,000
EBIT 2,350,000,000
Tax Provision 709,000,000
Depreciation and Amortization 945,000,000
Capital Expenditure -766,000,000
Unlevered Free Cash Flow 37,540,747

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