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Best Buy CoFRA:BUY +1.52%77 Return-on-Tangible-Asset is 7.91% as of Apr. 2026, which is 15% below its 10-year median of 9.36. GuruFocus rates FRA:BUY with a GF Score™ of 77/100 and a GF Value™ of €63.15 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,136 Retail - Cyclical companies, Best Buy Co ranks better than 76.58% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Best Buy Co's annualizedNet Income for the quarter that ended in Apr. 2026 was €944 Mil. Best Buy Co's average total tangible assets for the quarter that ended in Apr. 2026 was €11,932 Mil. Therefore, Best Buy Co's annualized Return-on-Tangible-Asset for the quarter that ended in Apr. 2026 was 7.91%.
The historical rank and industry rank for Best Buy Co's Return-on-Tangible-Asset or its related term are showing as below:
FRA:BUY'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 6.81 Med: 9.36 Max: 14.6
Current: 8
During the past 13 years, Best Buy Co's highest Return-on-Tangible-Asset was 14.60%. The lowest was 6.81%. And the median was 9.36%.
FRA:BUY's Return-on-Tangible-Asset is ranked better than 76.58% of 1136
companies
in the Retail - Cyclical industry
Industry Median: 2.92
vs FRA:BUY: 8.00
Best Buy Co (FRA:BUY) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Best Buy Co Return-on-Tangible-Asset Related Terms
Best Buy Co Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Best Buy Co's Return-on-Tangible-Asset 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: Return-on-Tangible-Asset Comparison
For the Specialty Retail subindustry, Best Buy Co's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Best Buy Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Best Buy Co's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Apr. 2026) net income data.
What does a Return-on-Tangible-Asset of 7.91% mean?
Best Buy Co (FRA:BUY) has a Return-on-Tangible-Asset of 7.91% as of Apr. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Best Buy Co and its competitors. This is 15% below median its historical median of 9.36. Over the past decade, Best Buy Co's Return-on-Tangible-Asset has ranged from 6.81 to 14.60. According to the industry distribution chart, Best Buy Co ranks #266 out of 1136 companies in the Retail - Cyclical industry, placing it in the top 23.4%.
Is Best Buy Co's Return-on-Tangible-Asset too high?
Best Buy Co's current Return-on-Tangible-Asset of 7.91% is 15% below median its 10-year median of 9.36. Over the past 10 years, this metric has ranged from a low of 6.81 to a high of 14.60. The Retail - Cyclical industry median Return-on-Tangible-Asset is 2.92. Best Buy Co's value of 7.91% is 170.9% above this industry median. Based on the distribution chart, Best Buy Co ranks #266 out of 1136 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 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Best Buy Co's Return-on-Tangible-Asset compare to DKS and TSCO?
According to the Retail - Cyclical industry distribution chart, Best Buy Co ranks #266 out of 1136 companies for Return-on-Tangible-Asset. This places Best Buy Co in the top 23% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.92. Best Buy Co's value of 7.91% is 170.9% above this benchmark. Historically, Best Buy Co's own Return-on-Tangible-Asset has ranged from 6.81 to 14.60 over the past decade. While the company's 10-year median is 9.36 vs. the industry median of 2.92, 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 Return-on-Tangible-Asset for a Retail - Cyclical company?
The median Return-on-Tangible-Asset among Retail - Cyclical companies is 2.92, based on 1,136 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Best Buy Co's current Return-on-Tangible-Asset of 7.91% is 170.9% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Best Buy Co and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Asset is 2.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Best Buy Co's current Return-on-Tangible-Asset is 7.91%, which is 15% below median its own 10-year median of 9.36. 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 Modestly Overvalued. The stock's GF Value™ is €63.15, compared to a current price of €74.94 — trading 18.7% above its estimated fair value. The current Return-on-Tangible-Asset is 7.91%, which is 15% below median its 10-year median of 9.36 and 170.9% above the Retail - Cyclical industry median of 2.92. Best Buy Co's overall GF Score™ is 77/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Best Buy Co (FRA:BUY), the current Return-on-Tangible-Asset is 7.91% 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 €74.94 is trading 18.7% above its estimated GF Value™ of €63.15.
GuruFocus considers Best Buy Co to be Modestly Overvalued.
Key valuation signals for FRA:BUY:
Return-on-Tangible-Asset: 7.91% (15% below median its 10-year median of 9.36)
GF Value™: €63.15 vs. price of €74.94 (18.7% above fair value)
Industry Position: 170.9% above the Retail - Cyclical median (#266 of 1136)
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.
77GF Score
Get the complete analysis for FRA:BUY
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