Best Buy CoFRA:BUY +1.97%75 Return-on-Tangible-Equity is 49.60% as of Apr. 2026, which is 19% below its 10-year median of 61.11. GuruFocus rates FRA:BUY with a GF Score™ of 75/100 and a GF Value™ of €63.65 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,060 Retail - Cyclical companies, Best Buy Co ranks better than 89.62% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Best Buy Co's annualized net income for the quarter that ended in Apr. 2026 was €944 Mil. Best Buy Co's average shareholder tangible equity for the quarter that ended in Apr. 2026 was €1,903 Mil. Therefore, Best Buy Co's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 49.60%.
The historical rank and industry rank for Best Buy Co's Return-on-Tangible-Equity or its related term are showing as below:
FRA:BUY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 26.83 Med: 61.11 Max: 109.83
Current: 58.03
During the past 13 years, Best Buy Co's highest Return-on-Tangible-Equity was 109.83%. The lowest was 26.83%. And the median was 61.11%.
FRA:BUY's Return-on-Tangible-Equity is ranked better than 89.62% of 1060
companies
in the Retail - Cyclical industry
Industry Median: 8.34
vs FRA:BUY: 58.03
Best Buy Co (FRA:BUY) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Best Buy Co Return-on-Tangible-Equity Related Terms
Best Buy Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Best Buy Co's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Specialty Retail subindustry, Best Buy Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Best Buy Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Best Buy Co's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 49.60% mean?
Best Buy Co (FRA:BUY) has a Return-on-Tangible-Equity of 49.60% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Best Buy Co and its competitors. This is 19% below median its historical median of 61.11. Over the past decade, Best Buy Co's Return-on-Tangible-Equity has ranged from 26.83 to 109.83. According to the industry distribution chart, Best Buy Co ranks #110 out of 1060 companies in the Retail - Cyclical industry, placing it in the top 10.4%.
Is Best Buy Co's Return-on-Tangible-Equity too high?
Best Buy Co's current Return-on-Tangible-Equity of 49.60% is 19% below median its 10-year median of 61.11. Over the past 10 years, this metric has ranged from a low of 26.83 to a high of 109.83. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.34. Best Buy Co's value of 49.60% is 494.7% above this industry median. Based on the distribution chart, Best Buy Co ranks #110 out of 1060 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 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Best Buy Co's Return-on-Tangible-Equity compare to TSCO and ULTA?
According to the Retail - Cyclical industry distribution chart, Best Buy Co ranks #110 out of 1060 companies for Return-on-Tangible-Equity. This places Best Buy Co in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.34. Best Buy Co's value of 49.60% is 494.7% above this benchmark. Historically, Best Buy Co's own Return-on-Tangible-Equity has ranged from 26.83 to 109.83 over the past decade. While the company's 10-year median is 61.11 vs. the industry median of 8.34, 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-Equity for a Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.34, based on 1,060 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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-Equity of 49.60% is 494.7% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Best Buy Co and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.34 — 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-Equity is 49.60%, which is 19% below median its own 10-year median of 61.11. 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 €63.65, compared to a current price of €69.36 — trading 9% above its estimated fair value. The current Return-on-Tangible-Equity is 49.60%, which is 19% below median its 10-year median of 61.11 and 494.7% above the Retail - Cyclical industry median of 8.34. Best Buy Co's overall GF Score™ is 75/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Best Buy Co (FRA:BUY), the current Return-on-Tangible-Equity is 49.60% 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 €69.36 is trading 9% above its estimated GF Value™ of €63.65.
GuruFocus considers Best Buy Co to be Fairly Valued.
Key valuation signals for FRA:BUY:
Return-on-Tangible-Equity: 49.60% (19% below median its 10-year median of 61.11)
GF Value™: €63.65 vs. price of €69.36 (9% above fair value)
Industry Position: 494.7% above the Retail - Cyclical median (#110 of 1060)
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.
75GF Score
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