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Best Buy CoFRA:BUY -0.03%83 Debt-to-EBITDA is 1.77 as of Apr. 2026, which is 36% above its 10-year median of 1.30. GuruFocus rates FRA:BUY with a GF Score™ of 83/100 and a GF Value™ of €64.79 (Fairly Valued). The stock has 6 warning signs investors should review. Among 911 Retail - Cyclical companies, Best Buy Co ranks better than 60.81% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Best Buy Co's Debt-to-EBITDA or its related term are showing as below:
FRA:BUY'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.51 Med: 1.3 Max: 1.83
Current: 1.71
During the past 13 years, the highest Debt-to-EBITDA Ratio of Best Buy Co was 1.83. The lowest was 0.51. And the median was 1.30.
FRA:BUY's Debt-to-EBITDA is ranked better than 60.81% of 911
companies
in the Retail - Cyclical industry
Industry Median: 2.32
vs FRA:BUY: 1.71
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Best Buy Co Debt-to-EBITDA Related Terms
Best Buy Co Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Best Buy Co's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:BUY vs DKS, TSCO, ULTA: Debt-to-EBITDA Comparison
For the Specialty Retail subindustry, Best Buy Co's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Best Buy Co Debt-to-EBITDA vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Best Buy Co's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Best Buy Co's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Apr. 2026) EBITDA data.
Best Buy Co (FRA:BUY) has a Debt-to-EBITDA of 1.77 as of Apr. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Best Buy Co. This is 36% above median its historical median of 1.30. Over the past decade, Best Buy Co's Debt-to-EBITDA has ranged from 0.51 to 1.83. According to the industry distribution chart, Best Buy Co ranks #357 out of 911 companies in the Retail - Cyclical industry, placing it in the top 39.2%.
Is Best Buy Co's Debt-to-EBITDA too high?
Best Buy Co's current Debt-to-EBITDA of 1.77 is 36% above median its 10-year median of 1.30. Over the past 10 years, this metric has ranged from a low of 0.51 to a high of 1.83. The Retail - Cyclical industry median Debt-to-EBITDA is 2.32. Best Buy Co's value of 1.77 is 23.7% below this industry median. Based on the distribution chart, Best Buy Co ranks #357 out of 911 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Best Buy Co has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Best Buy Co's Debt-to-EBITDA compare to DKS and TSCO?
According to the Retail - Cyclical industry distribution chart, Best Buy Co ranks #357 out of 911 companies for Debt-to-EBITDA. This puts Best Buy Co in the upper half of its industry. The industry median Debt-to-EBITDA is 2.32. Best Buy Co's value of 1.77 is 23.7% below this benchmark. Historically, Best Buy Co's own Debt-to-EBITDA has ranged from 0.51 to 1.83 over the past decade. While the company's 10-year median is 1.30 vs. the industry median of 2.32, Best Buy Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Retail - Cyclical company?
The median Debt-to-EBITDA among Retail - Cyclical companies is 2.32, based on 911 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Best Buy Co's current Debt-to-EBITDA of 1.77 is 23.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Best Buy Co. For the Retail - Cyclical industry, the median Debt-to-EBITDA is 2.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Best Buy Co's current Debt-to-EBITDA is 1.77, which is 36% above median its own 10-year median of 1.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Best Buy Co stock overvalued right now?
Based on GuruFocus' analysis, Best Buy Co (FRA:BUY) is currently considered Fairly Valued. The stock's GF Value™ is €64.79, compared to a current price of €70.98 — trading 9.6% above its estimated fair value. The current Debt-to-EBITDA is 1.77, which is 36% above median its 10-year median of 1.30 and 23.7% below the Retail - Cyclical industry median of 2.32. Best Buy Co's overall GF Score™ is 83/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Best Buy Co (FRA:BUY), the current Debt-to-EBITDA is 1.77 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Best Buy Co (FRA:BUY) Overvalued in 2026?
Based on GuruFocus' analysis, Best Buy Co stock appears to be overvalued.
The current stock price of €70.98 is trading 9.6% above its estimated GF Value™ of €64.79.
GuruFocus considers Best Buy Co to be Fairly Valued.
Key valuation signals for FRA:BUY:
Debt-to-EBITDA: 1.77 (36% above median its 10-year median of 1.30)
GF Value™: €64.79 vs. price of €70.98 (9.6% above fair value)
Industry Position: 23.7% below the Retail - Cyclical median (#357 of 911)
No single metric tells the full story. See the FRA:BUY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Best Buy Co Inc is a pure-play consumer electronics retailer in the USA. It has two reportable segments: Domestic and International. The Domestic and International segments have offerings in six revenue categories. Computing and Mobile Phones, Consumer Electronics, Appliances, Entertainment, Services, and Other. The company has approximately 1,068 stores throughout its Domestic and International segments. It also have vendor store-within-a-store concepts to allow closer vendor partnerships and a higher quality customer experience. The company generates majority of its revenue from the Domestic segment.
83GF Score
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