Price to Book Value (P/BV)
since 2005
Calculation
Best Buy Co. Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Total Best Buy Co., Inc. shareholders’ equity1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar 18, 2022 | 7.60 | = | 101.84 | ÷ | 13.41 | 13.41 | = | 3,020 | ÷ | 225,227,756 | |
| Mar 19, 2021 | 6.44 | = | 118.19 | ÷ | 18.34 | 18.34 | = | 4,587 | ÷ | 250,044,876 | |
| Mar 23, 2020 | 3.74 | = | 50.69 | ÷ | 13.54 | 13.54 | = | 3,479 | ÷ | 256,971,220 | |
| Mar 28, 2019 | 5.76 | = | 71.10 | ÷ | 12.34 | 12.34 | = | 3,306 | ÷ | 267,804,388 | |
| Apr 2, 2018 | 5.39 | = | 68.92 | ÷ | 12.78 | 12.78 | = | 3,612 | ÷ | 282,713,593 | |
| Mar 24, 2017 | 2.94 | = | 44.85 | ÷ | 15.23 | 15.23 | = | 4,709 | ÷ | 309,110,840 | |
| Mar 23, 2016 | 2.32 | = | 31.42 | ÷ | 13.54 | 13.54 | = | 4,378 | ÷ | 323,347,681 | |
| Mar 31, 2015 | 2.66 | = | 37.79 | ÷ | 14.18 | 14.18 | = | 4,995 | ÷ | 352,185,626 | |
| Mar 28, 2014 | 2.27 | = | 26.07 | ÷ | 11.49 | 11.49 | = | 3,986 | ÷ | 347,043,619 | |
| Mar 27, 2013 | 2.45 | = | 22.15 | ÷ | 9.04 | 9.04 | = | 3,061 | ÷ | 338,770,740 | |
| May 1, 2012 | 2.05 | = | 22.45 | ÷ | 10.94 | 10.94 | = | 3,745 | ÷ | 342,198,524 | |
| Apr 25, 2011 | 1.78 | = | 30.20 | ÷ | 16.95 | 16.95 | = | 6,602 | ÷ | 389,520,245 | |
| Apr 28, 2010 | 3.10 | = | 46.50 | ÷ | 14.98 | 14.98 | = | 6,320 | ÷ | 421,899,790 | |
| Apr 29, 2009 | 3.36 | = | 37.53 | ÷ | 11.15 | 11.15 | = | 4,643 | ÷ | 416,280,233 | |
| Apr 30, 2008 | 3.95 | = | 43.02 | ÷ | 10.89 | 10.89 | = | 4,484 | ÷ | 411,795,260 | |
| May 2, 2007 | 3.60 | = | 46.61 | ÷ | 12.94 | 12.94 | = | 6,201 | ÷ | 479,304,000 | |
| May 10, 2006 | 5.15 | = | 55.76 | ÷ | 10.82 | 10.82 | = | 5,257 | ÷ | 485,671,000 | |
| May 10, 2005 | 3.84 | = | 34.71 | ÷ | 9.05 | 9.05 | = | 4,449 | ÷ | 491,679,000 |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-KT (reporting date: 2013-02-02), 10-K (reporting date: 2012-03-03), 10-K (reporting date: 2011-02-26), 10-K (reporting date: 2010-02-27), 10-K (reporting date: 2009-02-28), 10-K (reporting date: 2008-03-01), 10-K (reporting date: 2007-03-03), 10-K (reporting date: 2006-02-25), 10-K (reporting date: 2005-02-26).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Best Buy Co. Inc. Annual Report.
The Price to Book Value (P/BV) ratio exhibited significant volatility between 2005 and 2022, characterized by an initial period of contraction followed by a substantial expansion in market valuation relative to net assets.
- Historical Valuation Trends
- Between 2006 and 2011, the P/BV ratio underwent a steady decline, dropping from a peak of 5.15 to a trough of 1.78. This period indicates a compression in the premium the market was willing to pay over the book value of the equity. Following 2011, the ratio entered a phase of relative stability, oscillating between 2.05 and 2.94 through 2017.
- Accelerated Valuation Expansion
- A sharp pivot occurred in 2018, where the P/BV ratio rose to 5.39 and continued a general upward trajectory, reaching a maximum of 7.60 by 2022. This trend reflects a significant increase in market valuation relative to the company's accounting book value, suggesting that investors began pricing in higher growth expectations or intangible value not captured on the balance sheet.
- Relationship Between Share Price and Book Value per Share
- The divergence between the share price and the Book Value per Share (BVPS) became most pronounced after 2017. While BVPS peaked at 18.34 in 2021, the share price experienced a more aggressive increase, reaching 118.19 in the same year. In 2022, the P/BV ratio reached its historical high of 7.60 despite a reduction in BVPS to 13.41, confirming that the ratio's peak was driven by share price levels rather than an increase in net asset value.
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Comparison to Competitors
Best Buy Co. Inc., P/BV, long-term trends, comparison to competitors
| Best Buy Co. Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Mar 18, 2022 | 7.60 | 7.25 | — | — | 12.14 |
| Mar 19, 2021 | 6.44 | 11.60 | 95.58 | 90.79 | 13.68 |
| Mar 23, 2020 | 3.74 | 17.86 | — | 25.96 | 9.42 |
| Mar 28, 2019 | 5.76 | 16.11 | — | 24.01 | 12.79 |
| Apr 2, 2018 | 5.39 | 18.34 | 139.52 | 11.89 | 10.23 |
| Mar 24, 2017 | 2.94 | 24.98 | 41.08 | 10.87 | 11.27 |
| Mar 23, 2016 | 2.32 | 20.47 | 25.88 | 8.87 | 12.09 |
| Mar 31, 2015 | 2.66 | 20.65 | 15.76 | 7.10 | 11.23 |
| Mar 28, 2014 | 2.27 | 15.33 | 8.68 | 4.20 | 10.18 |
| Mar 27, 2013 | 2.45 | 16.90 | 5.83 | 2.99 | 9.36 |
| May 1, 2012 | 2.05 | 15.14 | 4.23 | 2.28 | 9.20 |
| Apr 25, 2011 | 1.78 | 10.52 | 3.21 | 1.96 | 6.30 |
| Apr 28, 2010 | 3.10 | 11.25 | 2.85 | 1.84 | 6.12 |
| Apr 29, 2009 | 3.36 | 10.60 | 2.36 | 1.49 | 4.96 |
| Apr 30, 2008 | 3.95 | 9.43 | 2.79 | 2.22 | 6.74 |
| May 2, 2007 | 3.60 | 26.19 | 2.90 | 3.04 | 5.25 |
| May 10, 2006 | 5.15 | 38.87 | 3.38 | 3.54 | 6.17 |
| May 10, 2005 | 3.84 | 66.44 | 3.37 | 3.61 | 7.15 |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-KT (reporting date: 2013-02-02), 10-K (reporting date: 2012-03-03), 10-K (reporting date: 2011-02-26), 10-K (reporting date: 2010-02-27), 10-K (reporting date: 2009-02-28), 10-K (reporting date: 2008-03-01), 10-K (reporting date: 2007-03-03), 10-K (reporting date: 2006-02-25), 10-K (reporting date: 2005-02-26).
Comparison to Sector (Consumer Discretionary Distribution & Retail)
Best Buy Co. Inc., P/BV, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| Best Buy Co. Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Mar 18, 2022 | 7.60 | 11.07 |
| Mar 19, 2021 | 6.44 | 14.31 |
| Mar 23, 2020 | 3.74 | 20.07 |
| Mar 28, 2019 | 5.76 | 19.77 |
| Apr 2, 2018 | 5.39 | 20.07 |
| Mar 24, 2017 | 2.94 | 23.06 |
| Mar 23, 2016 | 2.32 | 18.06 |
| Mar 31, 2015 | 2.66 | 14.67 |
| Mar 28, 2014 | 2.27 | 9.31 |
| Mar 27, 2013 | 2.45 | 7.64 |
| May 1, 2012 | 2.05 | 5.82 |
| Apr 25, 2011 | 1.78 | 4.12 |
| Apr 28, 2010 | 3.10 | 3.84 |
| Apr 29, 2009 | 3.36 | 3.13 |
| Apr 30, 2008 | 3.95 | 3.23 |
| May 2, 2007 | 3.60 | 3.70 |
| May 10, 2006 | 5.15 | 3.90 |
| May 10, 2005 | 3.84 | 4.03 |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-KT (reporting date: 2013-02-02), 10-K (reporting date: 2012-03-03), 10-K (reporting date: 2011-02-26), 10-K (reporting date: 2010-02-27), 10-K (reporting date: 2009-02-28), 10-K (reporting date: 2008-03-01), 10-K (reporting date: 2007-03-03), 10-K (reporting date: 2006-02-25), 10-K (reporting date: 2005-02-26).
Comparison to Industry (Consumer Discretionary)
Best Buy Co. Inc., P/BV, long-term trends, comparison to industry (consumer discretionary)
| Best Buy Co. Inc. | Consumer Discretionary | |
|---|---|---|
| Mar 18, 2022 | 7.60 | 9.41 |
| Mar 19, 2021 | 6.44 | 13.21 |
| Mar 23, 2020 | 3.74 | 17.99 |
| Mar 28, 2019 | 5.76 | 13.59 |
| Apr 2, 2018 | 5.39 | 11.35 |
| Mar 24, 2017 | 2.94 | 10.74 |
| Mar 23, 2016 | 2.32 | 8.39 |
| Mar 31, 2015 | 2.66 | 7.17 |
| Mar 28, 2014 | 2.27 | 5.83 |
| Mar 27, 2013 | 2.45 | 5.12 |
| May 1, 2012 | 2.05 | 4.39 |
| Apr 25, 2011 | 1.78 | 3.84 |
| Apr 28, 2010 | 3.10 | 4.04 |
| Apr 29, 2009 | 3.36 | 4.72 |
| Apr 30, 2008 | 3.95 | 4.98 |
| May 2, 2007 | 3.60 | 3.91 |
| May 10, 2006 | 5.15 | 4.50 |
| May 10, 2005 | 3.84 | 3.49 |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-KT (reporting date: 2013-02-02), 10-K (reporting date: 2012-03-03), 10-K (reporting date: 2011-02-26), 10-K (reporting date: 2010-02-27), 10-K (reporting date: 2009-02-28), 10-K (reporting date: 2008-03-01), 10-K (reporting date: 2007-03-03), 10-K (reporting date: 2006-02-25), 10-K (reporting date: 2005-02-26).