Price to Sales (P/S)
since 2005
Calculation
Best Buy Co. Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Revenue1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar 18, 2022 | 0.44 | = | 101.84 | ÷ | 229.82 | 229.82 | = | 51,761 | ÷ | 225,227,756 | |
| Mar 19, 2021 | 0.63 | = | 118.19 | ÷ | 189.01 | 189.01 | = | 47,262 | ÷ | 250,044,876 | |
| Mar 23, 2020 | 0.30 | = | 50.69 | ÷ | 169.82 | 169.82 | = | 43,638 | ÷ | 256,971,220 | |
| Mar 28, 2019 | 0.44 | = | 71.10 | ÷ | 160.11 | 160.11 | = | 42,879 | ÷ | 267,804,388 | |
| Apr 2, 2018 | 0.46 | = | 68.92 | ÷ | 149.09 | 149.09 | = | 42,151 | ÷ | 282,713,593 | |
| Mar 24, 2017 | 0.35 | = | 44.85 | ÷ | 127.47 | 127.47 | = | 39,403 | ÷ | 309,110,840 | |
| Mar 23, 2016 | 0.26 | = | 31.42 | ÷ | 122.25 | 122.25 | = | 39,528 | ÷ | 323,347,681 | |
| Mar 31, 2015 | 0.33 | = | 37.79 | ÷ | 114.54 | 114.54 | = | 40,339 | ÷ | 352,185,626 | |
| Mar 28, 2014 | 0.21 | = | 26.07 | ÷ | 122.20 | 122.20 | = | 42,410 | ÷ | 347,043,619 | |
| Mar 27, 2013 | 0.17 | = | 22.15 | ÷ | 133.08 | 133.08 | = | 45,085 | ÷ | 338,770,740 | |
| May 1, 2012 | 0.15 | = | 22.45 | ÷ | 148.17 | 148.17 | = | 50,705 | ÷ | 342,198,524 | |
| Apr 25, 2011 | 0.23 | = | 30.20 | ÷ | 129.06 | 129.06 | = | 50,272 | ÷ | 389,520,245 | |
| Apr 28, 2010 | 0.39 | = | 46.50 | ÷ | 117.79 | 117.79 | = | 49,694 | ÷ | 421,899,790 | |
| Apr 29, 2009 | 0.35 | = | 37.53 | ÷ | 108.14 | 108.14 | = | 45,015 | ÷ | 416,280,233 | |
| Apr 30, 2008 | 0.44 | = | 43.02 | ÷ | 97.19 | 97.19 | = | 40,023 | ÷ | 411,795,260 | |
| May 2, 2007 | 0.62 | = | 46.61 | ÷ | 74.97 | 74.97 | = | 35,934 | ÷ | 479,304,000 | |
| May 10, 2006 | 0.88 | = | 55.76 | ÷ | 63.52 | 63.52 | = | 30,848 | ÷ | 485,671,000 | |
| May 10, 2005 | 0.62 | = | 34.71 | ÷ | 55.79 | 55.79 | = | 27,433 | ÷ | 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 Sales (P/S) ratio exhibits significant volatility over the seventeen-year period, reflecting a complex relationship between market valuation and revenue generation per share. While sales per share grew consistently over the long term, the P/S ratio did not follow a linear trajectory, indicating varying levels of market confidence in revenue quality and future growth prospects.
- Valuation Compression (2005–2013)
- An initial peak in the P/S ratio of 0.88 was recorded in 2006, followed by a prolonged period of contraction. This decline culminated in a low of 0.15 in 2012. This downward trend occurred despite a substantial increase in sales per share, which rose from 55.79 US$ in 2005 to 148.17 US$ in 2012, suggesting a significant decoupling where share price depreciation outpaced revenue growth.
- Recovery and Stabilization (2014–2019)
- A gradual recovery in the P/S ratio is observed starting in 2014, with the ratio climbing from 0.21 to a peak of 0.46 in 2018. During this window, the market valuation began to align more closely with the steady growth of sales per share, which increased from 122.20 US$ in 2014 to 160.11 US$ in 2018.
- Recent Volatility and Correction (2020–2022)
- The data shows a sharp spike in the P/S ratio in 2021, reaching 0.63, the highest level since 2006. This spike coincided with a peak share price of 118.19 US$. However, by 2022, the ratio corrected to 0.44, even as sales per share reached a period high of 229.82 US$, indicating a reduction in the premium the market was willing to pay per dollar of sales.
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Comparison to Competitors
Best Buy Co. Inc., P/S, 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 | 0.44 | 2.06 | 2.17 | 1.56 | 1.50 |
| Mar 19, 2021 | 0.63 | 3.41 | 2.39 | 1.46 | 2.48 |
| Mar 23, 2020 | 0.30 | 4.32 | 1.77 | 0.71 | 1.34 |
| Mar 28, 2019 | 0.44 | 3.56 | 1.94 | 1.23 | 1.66 |
| Apr 2, 2018 | 0.46 | 3.43 | 2.01 | 1.02 | 1.47 |
| Mar 24, 2017 | 0.35 | 3.89 | 1.88 | 1.08 | 1.53 |
| Mar 23, 2016 | 0.26 | 2.90 | 1.85 | 1.15 | 1.68 |
| Mar 31, 2015 | 0.33 | 2.58 | 1.77 | 1.26 | 1.65 |
| Mar 28, 2014 | 0.21 | 1.85 | 1.38 | 0.93 | 1.57 |
| Mar 27, 2013 | 0.17 | 2.21 | 1.39 | 0.82 | 1.33 |
| May 1, 2012 | 0.15 | 2.03 | 1.08 | 0.75 | 1.27 |
| Apr 25, 2011 | 0.23 | 1.70 | 0.89 | 0.73 | 0.89 |
| Apr 28, 2010 | 0.39 | 2.26 | 0.83 | 0.74 | 0.87 |
| Apr 29, 2009 | 0.35 | 2.27 | 0.59 | 0.56 | 0.56 |
| Apr 30, 2008 | 0.44 | 1.31 | 0.64 | 0.74 | 0.77 |
| May 2, 2007 | 0.62 | 2.11 | 0.80 | 1.02 | 0.69 |
| May 10, 2006 | 0.88 | 1.56 | 1.11 | 1.17 | 0.73 |
| May 10, 2005 | 0.62 | 1.93 | 1.11 | 1.14 | 0.79 |
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/S, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| Best Buy Co. Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Mar 18, 2022 | 0.44 | 1.99 |
| Mar 19, 2021 | 0.63 | 2.94 |
| Mar 23, 2020 | 0.30 | 3.23 |
| Mar 28, 2019 | 0.44 | 2.73 |
| Apr 2, 2018 | 0.46 | 2.56 |
| Mar 24, 2017 | 0.35 | 2.67 |
| Mar 23, 2016 | 0.26 | 2.16 |
| Mar 31, 2015 | 0.33 | 1.97 |
| Mar 28, 2014 | 0.21 | 1.47 |
| Mar 27, 2013 | 0.17 | 1.52 |
| May 1, 2012 | 0.15 | 1.30 |
| Apr 25, 2011 | 0.23 | 1.06 |
| Apr 28, 2010 | 0.39 | 1.10 |
| Apr 29, 2009 | 0.35 | 0.83 |
| Apr 30, 2008 | 0.44 | 0.76 |
| May 2, 2007 | 0.62 | 0.96 |
| May 10, 2006 | 0.88 | 1.12 |
| May 10, 2005 | 0.62 | 1.14 |
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/S, long-term trends, comparison to industry (consumer discretionary)
| Best Buy Co. Inc. | Consumer Discretionary | |
|---|---|---|
| Mar 18, 2022 | 0.44 | 2.27 |
| Mar 19, 2021 | 0.63 | 3.58 |
| Mar 23, 2020 | 0.30 | 3.81 |
| Mar 28, 2019 | 0.44 | 2.33 |
| Apr 2, 2018 | 0.46 | 2.05 |
| Mar 24, 2017 | 0.35 | 2.06 |
| Mar 23, 2016 | 0.26 | 1.68 |
| Mar 31, 2015 | 0.33 | 1.57 |
| Mar 28, 2014 | 0.21 | 1.32 |
| Mar 27, 2013 | 0.17 | 1.33 |
| May 1, 2012 | 0.15 | 1.06 |
| Apr 25, 2011 | 0.23 | 0.97 |
| Apr 28, 2010 | 0.39 | 0.96 |
| Apr 29, 2009 | 0.35 | 0.92 |
| Apr 30, 2008 | 0.44 | 0.66 |
| May 2, 2007 | 0.62 | 0.79 |
| May 10, 2006 | 0.88 | 0.86 |
| May 10, 2005 | 0.62 | 0.79 |
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).