Best Buy CoFRA:BUY -1.30%74 Interest Coverage is 32.82 as of Apr. 2026, which is 2% below its 10-year median of 33.61. GuruFocus rates FRA:BUY with a GF Score™ of 74/100 and a GF Value™ of €65.48 (Fairly Valued). The stock has 6 warning signs investors should review. Among 824 Retail - Cyclical companies, Best Buy Co ranks better than 80.34% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Best Buy Co's
Operating Income
for the
three
months ended in Apr. 2026 was €309 Mil. Best Buy Co's Interest Expense for the
three
months ended in Apr. 2026 was €-9 Mil.
Best Buy Co's interest coverage for the quarter that ended in Apr. 2026 was 32.82.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Best Buy Co's Interest Coverage or its related term are showing as below:
FRA:BUY'
s Interest Coverage Range Over the Past 10 Years
Min: 24.71 Med: 33.61 Max: 120.2
Current: 38.76
FRA:BUY's Interest Coverage is ranked better than 80.34% of 824
companies
in the Retail - Cyclical industry
Industry Median: 7.94
vs FRA:BUY: 38.76
Best Buy Co (FRA:BUY) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Best Buy Co Interest Coverage Related Terms
Best Buy Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Best Buy Co's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:BUY vs TSCO, ULTA, DKS: Interest Coverage Comparison
For the Specialty Retail subindustry, Best Buy Co's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Best Buy Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Best Buy Co's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Best Buy Co (FRA:BUY) has a Interest Coverage of 32.82 as of Apr. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Best Buy Co and its competitors. This is near median its historical median of 33.61. Over the past decade, Best Buy Co's Interest Coverage has ranged from 24.71 to 120.20. According to the industry distribution chart, Best Buy Co ranks #162 out of 824 companies in the Retail - Cyclical industry, placing it in the top 19.7%.
Is Best Buy Co's Interest Coverage too high?
Best Buy Co's current Interest Coverage of 32.82 is near median its 10-year median of 33.61. Over the past 10 years, this metric has ranged from a low of 24.71 to a high of 120.20. The Retail - Cyclical industry median Interest Coverage is 7.94. Best Buy Co's value of 32.82 is 313.4% above this industry median. Based on the distribution chart, Best Buy Co ranks #162 out of 824 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Best Buy Co has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Best Buy Co's Interest Coverage compare to TSCO and ULTA?
According to the Retail - Cyclical industry distribution chart, Best Buy Co ranks #162 out of 824 companies for Interest Coverage. This places Best Buy Co in the top 20% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 7.94. Best Buy Co's value of 32.82 is 313.4% above this benchmark. Historically, Best Buy Co's own Interest Coverage has ranged from 24.71 to 120.20 over the past decade. While the company's 10-year median is 33.61 vs. the industry median of 7.94, Best Buy Co has consistently been above 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 Interest Coverage for a Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.94, based on 824 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Best Buy Co's current Interest Coverage of 32.82 is 313.4% above 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Best Buy Co and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Best Buy Co's current Interest Coverage is 32.82, which is near median its own 10-year median of 33.61. 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 €65.48, compared to a current price of €66.98 — trading 2.3% above its estimated fair value. The current Interest Coverage is 32.82, which is near median its 10-year median of 33.61 and 313.4% above the Retail - Cyclical industry median of 7.94. Best Buy Co's overall GF Score™ is 74/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Best Buy Co (FRA:BUY), the current Interest Coverage is 32.82 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 €66.98 is trading 2.3% above its estimated GF Value™ of €65.48.
GuruFocus considers Best Buy Co to be Fairly Valued.
Key valuation signals for FRA:BUY:
Interest Coverage: 32.82 (near median its 10-year median of 33.61)
GF Value™: €65.48 vs. price of €66.98 (2.3% above fair value)
Industry Position: 313.4% above the Retail - Cyclical median (#162 of 824)
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.
74GF Score
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