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GuruFocus has detected 2 Warning Signs with Best Buy Co Inc $BBY.
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Best Buy Co Inc (NYSE:BBY)
PEG Ratio
PE(NRI) Ratio / EBITDA 5-Y Growth
2.13 (As of Today)

PEG is defined as the P/E (NRI) Ratio divided by the growth ratio. The growth rate we use is the 5-year average EBITDA growth rate. As of today, Best Buy Co Inc's P/E (NRI) Ratio is 11.93. Best Buy Co Inc's 5-year average EBITDA growth rate is 5.60%. Therefore, Best Buy Co Inc's PEG for today is 2.13.

BBY' s PEG Ratio Range Over the Past 10 Years
Min: 0.4   Max: 12.27
Current: 2.13

0.4
12.27

During the past 13 years, Best Buy Co Inc's highest PEG was 12.27. The lowest was 0.40. And the median was 0.83.

BBY's PEG Ratio is ranked higher than
50% of the 298 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.18 vs. BBY: 2.13 )

Peter Lynch thinks a company with a P/E (NRI) ratio equal to its growth rate is fairly valued.


Definition

PEG is defined as the P/E (NRI) Ratio divided by the growth ratio. The ratio we use is the 5-year average EBITDA growth rate.

Best Buy Co Inc's PEG for today is calculated as

PEG=P/E (NRI) Ratio/EBITDA Growth Rate (5-year average)
=11.9281914894/5.60
=2.13

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG. PEG is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Related Terms

P/E (NRI) Ratio, Peter Lynch Fair Value


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Best Buy Co Inc Annual Data

Feb08Feb09Feb10Feb11Feb12Jan13Jan14Jan15Jan16Jan17
peg 0.780.780.760.680.660.000.000.000.002.31

Best Buy Co Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
peg 0.000.000.000.000.000.000.000.009.742.31
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