Best Buy CoFRA:BUY +1.64%76 Gross Margin % is 23.52% as of Apr. 2026, which is 4% above its 10-year median of 22.55. GuruFocus rates FRA:BUY with a GF Score™ of 76/100 and a GF Value™ of €66.62 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,113 Retail - Cyclical companies, Best Buy Co ranks worse than 74.12% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Best Buy Co's Gross Profit for the
three
months ended in Apr. 2026 was €1,797 Mil. Best Buy Co's Revenue for the
three
months ended in Apr. 2026 was €7,640 Mil. Therefore, Best Buy Co's Gross Margin % for the quarter that ended in Apr. 2026 was 23.52%.
The historical rank and industry rank for Best Buy Co's Gross Margin % or its related term are showing as below:
FRA:BUY'
s Gross Margin % Range Over the Past 10 Years
Min: 21.41 Med: 22.55 Max: 23.96
Current: 22.52
During the past 13 years, the highestGross Margin % of Best Buy Co was 23.96%. The lowest was 21.41%. And the median was 22.55%.
FRA:BUY's Gross Margin % is ranked worse than 74.12% of 1113
companies
in the Retail - Cyclical industry
Industry Median: 36.26
vs FRA:BUY: 22.52
Best Buy Co had a gross margin of 23.52% for the quarter that ended in Apr. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Best Buy Co was 0.20% per year.
Best Buy Co (FRA:BUY) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Best Buy Co had a gross margin of 23.52% for the quarter that ended in Apr. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Best Buy Co Gross Margin % Related Terms
Best Buy Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Best Buy Co's Gross Margin % 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 TSCO, ULTA, DKS: Gross Margin % Comparison
For the Specialty Retail subindustry, Best Buy Co's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Best Buy Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Best Buy Co's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Best Buy Co (FRA:BUY) has a Gross Margin % of 23.52% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Best Buy Co and its competitors. This is near median its historical median of 22.55. Over the past decade, Best Buy Co's Gross Margin % has ranged from 21.41 to 23.96. According to the industry distribution chart, Best Buy Co ranks #825 out of 1113 companies in the Retail - Cyclical industry, placing it in the top 74.1%.
Is Best Buy Co's Gross Margin % too high?
Best Buy Co's current Gross Margin % of 23.52% is near median its 10-year median of 22.55. Over the past 10 years, this metric has ranged from a low of 21.41 to a high of 23.96. The Retail - Cyclical industry median Gross Margin % is 36.26. Best Buy Co's value of 23.52% is 35.1% below this industry median. Based on the distribution chart, Best Buy Co ranks #825 out of 1113 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Best Buy Co has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Best Buy Co's Gross Margin % compare to TSCO and ULTA?
According to the Retail - Cyclical industry distribution chart, Best Buy Co ranks #825 out of 1113 companies for Gross Margin %. This places Best Buy Co in the lower half of its industry. The industry median Gross Margin % is 36.26. Best Buy Co's value of 23.52% is 35.1% below this benchmark. Historically, Best Buy Co's own Gross Margin % has ranged from 21.41 to 23.96 over the past decade. While the company's 10-year median is 22.55 vs. the industry median of 36.26, 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 Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.26, based on 1,113 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Best Buy Co's current Gross Margin % of 23.52% is 35.1% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Best Buy Co and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Best Buy Co's current Gross Margin % is 23.52%, which is near median its own 10-year median of 22.55. 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 €66.62, compared to a current price of €68.08 — trading 2.2% above its estimated fair value. The current Gross Margin % is 23.52%, which is near median its 10-year median of 22.55 and 35.1% below the Retail - Cyclical industry median of 36.26. Best Buy Co's overall GF Score™ is 76/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Best Buy Co (FRA:BUY), the current Gross Margin % is 23.52% 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 €68.08 is trading 2.2% above its estimated GF Value™ of €66.62.
GuruFocus considers Best Buy Co to be Fairly Valued.
Key valuation signals for FRA:BUY:
Gross Margin %: 23.52% (near median its 10-year median of 22.55)
GF Value™: €66.62 vs. price of €68.08 (2.2% above fair value)
Industry Position: 35.1% below the Retail - Cyclical median (#825 of 1113)
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.
76GF Score
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