Stock Analysis on Net

Best Buy Co. Inc. (NYSE:BBY)

This company has been moved to the archive! The financial data has not been updated since December 6, 2022.

Enterprise Value to FCFF (EV/FCFF) 

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Free Cash Flow to The Firm (FCFF)

Best Buy Co. Inc., FCFF calculation

US$ in millions

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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
Interest paid, net of tax1 18 38 48 55 45 51
Additions to property and equipment, net of non-cash capital expenditures (737) (713) (743) (819) (688) (582)
Free cash flow to the firm (FCFF) 2,533 4,252 1,870 1,644 1,498 2,014

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).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Best Buy Co. Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Best Buy Co. Inc. FCFF increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.

Interest Paid, Net of Tax

Best Buy Co. Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017
Effective Income Tax Rate (EITR)
EITR1 19.00% 24.30% 22.70% 22.40% 45.00% 33.50%
Interest Paid, Net of Tax
Interest paid, before tax 22 50 62 71 81 76
Less: Interest paid, tax2 4 12 14 16 36 25
Interest paid, net of tax 18 38 48 55 45 51

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 See details »

2 2022 Calculation
Interest paid, tax = Interest paid × EITR
= 22 × 19.00% = 4


Enterprise Value to FCFF Ratio, Current

Best Buy Co. Inc., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 16,720
Free cash flow to the firm (FCFF) 2,533
Valuation Ratio
EV/FCFF 6.60
Benchmarks
EV/FCFF, Competitors1
Amazon.com Inc. 56.07
Home Depot Inc. 22.48
Lowe’s Cos. Inc. 25.13
TJX Cos. Inc. 29.04
EV/FCFF, Sector
Consumer Discretionary Distribution & Retail 192.23
EV/FCFF, Industry
Consumer Discretionary 74.80

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

1 Click competitor name to see calculations.

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


Enterprise Value to FCFF Ratio, Historical

Best Buy Co. Inc., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 21,230 25,436 12,068 18,449 17,707 11,308
Free cash flow to the firm (FCFF)2 2,533 4,252 1,870 1,644 1,498 2,014
Valuation Ratio
EV/FCFF3 8.38 5.98 6.45 11.22 11.82 5.62
Benchmarks
EV/FCFF, Competitors4
Amazon.com Inc. 78.83 74.39
Home Depot Inc. 25.12 20.22 19.11 21.30
Lowe’s Cos. Inc. 19.56 14.88 20.95 18.88
TJX Cos. Inc. 33.03 18.30 19.08 21.16
EV/FCFF, Sector
Consumer Discretionary Distribution & Retail 111.04 130.00 51.35 42.44
EV/FCFF, Industry
Consumer Discretionary 50.20 59.78 45.72 30.57

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 See details »

2 See details »

3 2022 Calculation
EV/FCFF = EV ÷ FCFF
= 21,230 ÷ 2,533 = 8.38

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Best Buy Co. Inc. EV/FCFF ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.