Best Buy Co. Inc., FCFE calculation

US$ in millions

12 months ended:	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Net earnings	2,454)	1,798)	1,541)	1,464)	1,000)	1,228)
Net noncash charges	1,001)	1,195)	1,087)	924)	971)	971)
Changes in operating assets and liabilities, net of acquired assets and liabilities	(203)	1,934)	(63)	20)	170)	346)
Cash provided by operating activities	3,252)	4,927)	2,565)	2,408)	2,141)	2,545)
Additions to property and equipment, net of non-cash capital expenditures	(737)	(713)	(743)	(819)	(688)	(582)
Borrowings of debt	—)	1,892)	—)	498)	—)	—)
Repayments of debt	(133)	(1,916)	(15)	(546)	(46)	(394)
Free cash flow to equity (FCFE)	2,382)	4,190)	1,807)	1,541)	1,407)	1,569)

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).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Best Buy Co. Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Best Buy Co. Inc. FCFE increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.

Best Buy Co. Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	221,264,454
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	2,382)
FCFE per share	10.77
Current share price (P)	83.28
Valuation Ratio
P/FCFE	7.74
Benchmarks
P/FCFE, Competitors¹
Amazon.com Inc.	87.99
Home Depot Inc.	17.79
Lowe’s Cos. Inc.	16.32
TJX Cos. Inc.	28.47
P/FCFE, Sector
Consumer Discretionary Distribution & Retail	78.57
P/FCFE, Industry
Consumer Discretionary	49.33

Based on: 10-K (reporting date: 2022-01-29).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Best Buy Co. Inc., historical P/FCFE calculation, comparison to benchmarks

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
No. shares of common stock outstanding¹	225,227,756	250,044,876	256,971,220	267,804,388	282,713,593	309,110,840
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	2,382)	4,190)	1,807)	1,541)	1,407)	1,569)
FCFE per share³	10.58	16.76	7.03	5.75	4.98	5.08
Share price^1, 4	101.84	118.19	50.69	71.10	68.92	44.85
Valuation Ratio
P/FCFE⁵	9.63	7.05	7.21	12.36	13.85	8.84
Benchmarks
P/FCFE, Competitors⁶
Amazon.com Inc.	240.95	—	55.66	63.35	—	—
Home Depot Inc.	19.87	15.41	14.99	16.61	—	—
Lowe’s Cos. Inc.	13.55	12.28	8.69	20.45	—	—
TJX Cos. Inc.	—	10.55	19.71	21.79	—	—
P/FCFE, Sector
Consumer Discretionary Distribution & Retail	51.89	59.10	38.09	38.19	—	—
P/FCFE, Industry
Consumer Discretionary	38.31	86.53	30.52	28.87	—	—

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).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 2,382,000,000 ÷ 225,227,756 = 10.58

⁴ Closing price as at the filing date of Best Buy Co. Inc. Annual Report.

⁵ 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 101.84 ÷ 10.58 = 9.63

⁶ Click competitor name to see calculations.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Best Buy Co. Inc. P/FCFE ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Best Buy Co. Inc. (NYSE:BBY)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical