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Best Buy CoBBY +0.14%75 ROC (Joel Greenblatt) % is 32.04% as of Apr. 2026, which is 38% below its 10-year median of 51.77. GuruFocus rates BBY with a GF Score™ of 75/100 and a GF Value™ of $75.99 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,126 Retail - Cyclical companies, Best Buy Co ranks better than 78.86% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Best Buy Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 32.04%.
The historical rank and industry rank for Best Buy Co's ROC (Joel Greenblatt) % or its related term are showing as below:
BBY'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 26.99 Med: 51.77 Max: 80.27
Current: 32.74
During the past 13 years, Best Buy Co's highest ROC (Joel Greenblatt) % was 80.27%. The lowest was 26.99%. And the median was 51.77%.
BBY's ROC (Joel Greenblatt) % is ranked better than 78.86% of 1126
companies
in the Retail - Cyclical industry
Industry Median: 11.57
vs BBY: 32.74
Best Buy Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -13.70% per year.
Best Buy Co (NYSE:BBY) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Best Buy Co ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Best Buy Co's ROC (Joel Greenblatt) % 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.
BBY vs TSCO, ULTA, DKS: ROC (Joel Greenblatt) % Comparison
For the Specialty Retail subindustry, Best Buy Co's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Best Buy Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Best Buy Co's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 32.04% mean?
Best Buy Co (BBY) has a ROC (Joel Greenblatt) % of 32.04% as of Apr. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Best Buy Co and its competitors. This is 38% below median its historical median of 51.77. Over the past decade, Best Buy Co's ROC (Joel Greenblatt) % has ranged from 26.99 to 80.27. According to the industry distribution chart, Best Buy Co ranks #238 out of 1126 companies in the Retail - Cyclical industry, placing it in the top 21.1%.
Is Best Buy Co's ROC (Joel Greenblatt) % too high?
Best Buy Co's current ROC (Joel Greenblatt) % of 32.04% is 38% below median its 10-year median of 51.77. Over the past 10 years, this metric has ranged from a low of 26.99 to a high of 80.27. The Retail - Cyclical industry median ROC (Joel Greenblatt) % is 11.57. Best Buy Co's value of 32.04% is 176.9% above this industry median. Based on the distribution chart, Best Buy Co ranks #238 out of 1126 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 Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Best Buy Co's ROC (Joel Greenblatt) % compare to TSCO and ULTA?
According to the Retail - Cyclical industry distribution chart, Best Buy Co ranks #238 out of 1126 companies for ROC (Joel Greenblatt) %. This places Best Buy Co in the top 21% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 11.57. Best Buy Co's value of 32.04% is 176.9% above this benchmark. Historically, Best Buy Co's own ROC (Joel Greenblatt) % has ranged from 26.99 to 80.27 over the past decade. While the company's 10-year median is 51.77 vs. the industry median of 11.57, 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 ROC (Joel Greenblatt) % for a Retail - Cyclical company?
The median ROC (Joel Greenblatt) % among Retail - Cyclical companies is 11.57, based on 1,126 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Best Buy Co's current ROC (Joel Greenblatt) % of 32.04% is 176.9% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Best Buy Co and its competitors. For the Retail - Cyclical industry, the median ROC (Joel Greenblatt) % is 11.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Best Buy Co's current ROC (Joel Greenblatt) % is 32.04%, which is 38% below median its own 10-year median of 51.77. 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 (BBY) is currently considered Modestly Overvalued. The stock's GF Value™ is $75.99, compared to a current price of $85.41 — trading 12.4% above its estimated fair value. The current ROC (Joel Greenblatt) % is 32.04%, which is 38% below median its 10-year median of 51.77 and 176.9% above the Retail - Cyclical industry median of 11.57. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Best Buy Co (BBY), the current ROC (Joel Greenblatt) % is 32.04% 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 (BBY) Overvalued in 2026?
Based on GuruFocus' analysis, Best Buy Co stock appears to be overvalued.
The current stock price of $85.41 is trading 12.4% above its estimated GF Value™ of $75.99.
GuruFocus considers Best Buy Co to be Modestly Overvalued.
Key valuation signals for BBY:
ROC (Joel Greenblatt) %: 32.04% (38% below median its 10-year median of 51.77)
GF Value™: $75.99 vs. price of $85.41 (12.4% above fair value)
Industry Position: 176.9% above the Retail - Cyclical median (#238 of 1126)
No single metric tells the full story. See the BBY 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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