Price to Earnings (P/E)
since 2005
Calculation
Best Buy Co. Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net earnings (loss)1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar 18, 2022 | 9.35 | = | 101.84 | ÷ | 10.90 | 10.90 | = | 2,454 | ÷ | 225,227,756 | |
| Mar 19, 2021 | 16.44 | = | 118.19 | ÷ | 7.19 | 7.19 | = | 1,798 | ÷ | 250,044,876 | |
| Mar 23, 2020 | 8.45 | = | 50.69 | ÷ | 6.00 | 6.00 | = | 1,541 | ÷ | 256,971,220 | |
| Mar 28, 2019 | 13.01 | = | 71.10 | ÷ | 5.47 | 5.47 | = | 1,464 | ÷ | 267,804,388 | |
| Apr 2, 2018 | 19.48 | = | 68.92 | ÷ | 3.54 | 3.54 | = | 1,000 | ÷ | 282,713,593 | |
| Mar 24, 2017 | 11.29 | = | 44.85 | ÷ | 3.97 | 3.97 | = | 1,228 | ÷ | 309,110,840 | |
| Mar 23, 2016 | 11.33 | = | 31.42 | ÷ | 2.77 | 2.77 | = | 897 | ÷ | 323,347,681 | |
| Mar 31, 2015 | 10.79 | = | 37.79 | ÷ | 3.50 | 3.50 | = | 1,233 | ÷ | 352,185,626 | |
| Mar 28, 2014 | 17.01 | = | 26.07 | ÷ | 1.53 | 1.53 | = | 532 | ÷ | 347,043,619 | |
| Mar 27, 2013 | — | = | 22.15 | ÷ | -1.30 | -1.30 | = | -441 | ÷ | 338,770,740 | |
| May 1, 2012 | — | = | 22.45 | ÷ | -3.60 | -3.60 | = | -1,231 | ÷ | 342,198,524 | |
| Apr 25, 2011 | 9.21 | = | 30.20 | ÷ | 3.28 | 3.28 | = | 1,277 | ÷ | 389,520,245 | |
| Apr 28, 2010 | 14.90 | = | 46.50 | ÷ | 3.12 | 3.12 | = | 1,317 | ÷ | 421,899,790 | |
| Apr 29, 2009 | 15.58 | = | 37.53 | ÷ | 2.41 | 2.41 | = | 1,003 | ÷ | 416,280,233 | |
| Apr 30, 2008 | 12.59 | = | 43.02 | ÷ | 3.42 | 3.42 | = | 1,407 | ÷ | 411,795,260 | |
| May 2, 2007 | 16.22 | = | 46.61 | ÷ | 2.87 | 2.87 | = | 1,377 | ÷ | 479,304,000 | |
| May 10, 2006 | 23.76 | = | 55.76 | ÷ | 2.35 | 2.35 | = | 1,140 | ÷ | 485,671,000 | |
| May 10, 2005 | 17.34 | = | 34.71 | ÷ | 2.00 | 2.00 | = | 984 | ÷ | 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 valuation of Best Buy Co. Inc. from 2005 to 2022 exhibits significant volatility in the Price to Earnings (P/E) ratio, driven by fluctuations in both share price and earnings per share (EPS). The P/E ratio has transitioned through distinct phases of expansion, contraction, and periods of non-calculability due to net losses.
- Early Valuation Trends (2005–2011)
- During the initial period, the P/E ratio peaked in 2006 at 23.76, coinciding with a share price increase to $55.76. However, a general downward trend followed, with the ratio declining to 9.21 by 2011. This contraction occurred despite a general upward trajectory in EPS, which rose from $2.00 in 2005 to $3.28 in 2011, suggesting a decrease in the market's valuation premium relative to earnings growth.
- Earnings Instability and Valuation Gap (2012–2013)
- A significant disruption is observed between 2012 and 2013, characterized by negative EPS values of -$3.60 and -$1.30, respectively. During this interval, the P/E ratio became non-calculable, and the share price reached its lowest levels of the analyzed period, bottoming at $22.15 in 2013.
- Recovery and Multiple Contraction (2014–2022)
- Following the return to profitability in 2014, the P/E ratio fluctuated between 8.45 and 19.48. A notable peak in share price occurred in 2021 at $118.19 with a P/E of 16.44. By 2022, although EPS reached a period high of $10.90, the share price declined to $101.84, resulting in a P/E contraction to 9.35. This indicates that while fundamental earnings grew substantially, the market valuation multiple compressed during the final year of the analyzed period.
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Comparison to Competitors
Best Buy Co. Inc., P/E, 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 | 9.35 | — | 19.94 | 17.84 | 22.20 |
| Mar 19, 2021 | 16.44 | 48.08 | 24.51 | 22.36 | 881.78 |
| Mar 23, 2020 | 8.45 | 78.20 | 17.38 | 11.96 | 17.13 |
| Mar 28, 2019 | 13.01 | 86.30 | 18.87 | 37.80 | 21.11 |
| Apr 2, 2018 | 19.48 | 79.30 | 23.51 | 20.26 | 20.19 |
| Mar 24, 2017 | 11.29 | 228.25 | 22.37 | 22.62 | 22.11 |
| Mar 23, 2016 | 11.33 | 166.52 | 23.32 | 26.67 | 22.87 |
| Mar 31, 2015 | 10.79 | 463.73 | 23.15 | 26.24 | 21.62 |
| Mar 28, 2014 | 17.01 | — | 20.18 | 21.79 | 20.15 |
| Mar 27, 2013 | — | 601.07 | 22.86 | 21.13 | 17.99 |
| May 1, 2012 | — | — | 19.49 | 20.46 | 19.73 |
| Apr 25, 2011 | 9.21 | 129.38 | 18.15 | 17.66 | 14.54 |
| Apr 28, 2010 | 14.90 | 67.02 | 20.76 | 19.70 | 14.57 |
| Apr 29, 2009 | 15.58 | 61.80 | 18.59 | 12.26 | 12.02 |
| Apr 30, 2008 | 12.59 | 39.07 | 11.24 | 12.74 | 18.61 |
| May 2, 2007 | 16.22 | 65.85 | 12.59 | 15.42 | 16.30 |
| May 10, 2006 | 23.76 | 88.17 | 15.57 | 18.31 | 16.91 |
| May 10, 2005 | 17.34 | 45.52 | 16.29 | 19.15 | 17.81 |
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/E, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| Best Buy Co. Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Mar 18, 2022 | 9.35 | 63.32 |
| Mar 19, 2021 | 16.44 | 40.84 |
| Mar 23, 2020 | 8.45 | 49.11 |
| Mar 28, 2019 | 13.01 | 48.49 |
| Apr 2, 2018 | 19.48 | 45.41 |
| Mar 24, 2017 | 11.29 | 60.50 |
| Mar 23, 2016 | 11.33 | 47.75 |
| Mar 31, 2015 | 10.79 | 45.72 |
| Mar 28, 2014 | 17.01 | 38.28 |
| Mar 27, 2013 | — | 39.66 |
| May 1, 2012 | — | 37.17 |
| Apr 25, 2011 | 9.21 | 26.94 |
| Apr 28, 2010 | 14.90 | 27.21 |
| Apr 29, 2009 | 15.58 | 21.68 |
| Apr 30, 2008 | 12.59 | 14.47 |
| May 2, 2007 | 16.22 | 16.25 |
| May 10, 2006 | 23.76 | 17.92 |
| May 10, 2005 | 17.34 | 18.45 |
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/E, long-term trends, comparison to industry (consumer discretionary)
| Best Buy Co. Inc. | Consumer Discretionary | |
|---|---|---|
| Mar 18, 2022 | 9.35 | 46.01 |
| Mar 19, 2021 | 16.44 | 39.27 |
| Mar 23, 2020 | 8.45 | 73.74 |
| Mar 28, 2019 | 13.01 | 39.37 |
| Apr 2, 2018 | 19.48 | 33.13 |
| Mar 24, 2017 | 11.29 | 47.03 |
| Mar 23, 2016 | 11.33 | 29.19 |
| Mar 31, 2015 | 10.79 | 24.70 |
| Mar 28, 2014 | 17.01 | 29.48 |
| Mar 27, 2013 | — | 26.50 |
| May 1, 2012 | — | 20.90 |
| Apr 25, 2011 | 9.21 | 11.38 |
| Apr 28, 2010 | 14.90 | 17.54 |
| Apr 29, 2009 | 15.58 | 18.66 |
| Apr 30, 2008 | 12.59 | 303.41 |
| May 2, 2007 | 16.22 | 24.33 |
| May 10, 2006 | 23.76 | 117.34 |
| May 10, 2005 | 17.34 | 17.54 |
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).