Best Buy CoFRA:BUY -0.38%76 Pretax Margin % is 4.23% as of Apr. 2026, which is 3% below its 10-year median of 4.36. GuruFocus rates FRA:BUY with a GF Score™ of 76/100 and a GF Value™ of €62.84 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,124 Retail - Cyclical companies, Best Buy Co ranks better than 52.49% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Best Buy Co's Pre-Tax Income for the
three
months ended in Apr. 2026 was €323 Mil. Best Buy Co's Revenue for the
three
months ended in Apr. 2026 was €7,640 Mil. Therefore, Best Buy Co's pretax margin for the quarter that ended in Apr. 2026 was 4.23%.
The historical rank and industry rank for Best Buy Co's Pretax Margin % or its related term are showing as below:
FRA:BUY'
s Pretax Margin % Range Over the Past 10 Years
Min: 3.12 Med: 4.36 Max: 5.84
Current: 3.73
FRA:BUY's Pretax Margin % is ranked better than 52.49% of 1124
companies
in the Retail - Cyclical industry
Industry Median: 3.17
vs FRA:BUY: 3.73
Best Buy Co (FRA:BUY) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Best Buy Co Pretax Margin % Related Terms
Best Buy Co Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Best Buy Co's Pretax 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: Pretax Margin % Comparison
For the Specialty Retail subindustry, Best Buy Co's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Best Buy Co's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Best Buy Co's Pretax 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.
Best Buy Co (FRA:BUY) has a Pretax Margin % of 4.23% as of Apr. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Best Buy Co and its competitors. This is near median its historical median of 4.36. Over the past decade, Best Buy Co's Pretax Margin % has ranged from 3.12 to 5.84. According to the industry distribution chart, Best Buy Co ranks #534 out of 1124 companies in the Retail - Cyclical industry, placing it in the top 47.5%.
Is Best Buy Co's Pretax Margin % too high?
Best Buy Co's current Pretax Margin % of 4.23% is near median its 10-year median of 4.36. Over the past 10 years, this metric has ranged from a low of 3.12 to a high of 5.84. The Retail - Cyclical industry median Pretax Margin % is 3.17. Best Buy Co's value of 4.23% is 33.4% above this industry median. Based on the distribution chart, Best Buy Co ranks #534 out of 1124 companies in the Retail - Cyclical industry, which is above 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 Pretax Margin % compare to TSCO and ULTA?
According to the Retail - Cyclical industry distribution chart, Best Buy Co ranks #534 out of 1124 companies for Pretax Margin %. This puts Best Buy Co in the upper half of its industry. The industry median Pretax Margin % is 3.17. Best Buy Co's value of 4.23% is 33.4% above this benchmark. Historically, Best Buy Co's own Pretax Margin % has ranged from 3.12 to 5.84 over the past decade. While the company's 10-year median is 4.36 vs. the industry median of 3.17, 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 Pretax Margin % for a Retail - Cyclical company?
The median Pretax Margin % among Retail - Cyclical companies is 3.17, based on 1,124 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Best Buy Co's current Pretax Margin % of 4.23% is 33.4% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Best Buy Co and its competitors. For the Retail - Cyclical industry, the median Pretax Margin % is 3.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Best Buy Co's current Pretax Margin % is 4.23%, which is near median its own 10-year median of 4.36. 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 €62.84, compared to a current price of €67.82 — trading 7.9% above its estimated fair value. The current Pretax Margin % is 4.23%, which is near median its 10-year median of 4.36 and 33.4% above the Retail - Cyclical industry median of 3.17. Best Buy Co's overall GF Score™ is 76/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Best Buy Co (FRA:BUY), the current Pretax Margin % is 4.23% 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 €67.82 is trading 7.9% above its estimated GF Value™ of €62.84.
GuruFocus considers Best Buy Co to be Fairly Valued.
Key valuation signals for FRA:BUY:
Pretax Margin %: 4.23% (near median its 10-year median of 4.36)
GF Value™: €62.84 vs. price of €67.82 (7.9% above fair value)
Industry Position: 33.4% above the Retail - Cyclical median (#534 of 1124)
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
Get the complete analysis for FRA:BUY
Pretax Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:BUY has been successfully added to your 
