Best Buy CoFRA:BUY -1.30%74 ROE % is 36.60% as of Apr. 2026, which is 14% below its 10-year median of 42.38. 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 1,097 Retail - Cyclical companies, Best Buy Co ranks better than 93.07% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Best Buy Co's annualized net income for the quarter that ended in Apr. 2026 was €944 Mil. Best Buy Co's average Total Stockholders Equity over the quarter that ended in Apr. 2026 was €2,579 Mil. Therefore, Best Buy Co's annualized ROE % for the quarter that ended in Apr. 2026 was 36.60%.
The historical rank and industry rank for Best Buy Co's ROE % or its related term are showing as below:
FRA:BUY'
s ROE % Range Over the Past 10 Years
Min: 24.04 Med: 42.38 Max: 64.52
Current: 40.31
During the past 13 years, Best Buy Co's highest ROE % was 64.52%. The lowest was 24.04%. And the median was 42.38%.
FRA:BUY's ROE % is ranked better than 93.07% of 1097
companies
in the Retail - Cyclical industry
Industry Median: 6.46
vs FRA:BUY: 40.31
Best Buy Co (FRA:BUY) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Best Buy Co ROE % Related Terms
Best Buy Co ROE % Historical Data
* Premium members only.
The historical data trend for Best Buy Co's ROE % 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.
For the Specialty Retail subindustry, Best Buy Co's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Best Buy Co's ROE % distribution charts can be found below:
* The bar in red indicates where Best Buy Co's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Best Buy Co (FRA:BUY) has a ROE % of 36.60% as of Apr. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Best Buy Co and its competitors. This is 14% below median its historical median of 42.38. Over the past decade, Best Buy Co's ROE % has ranged from 24.04 to 64.52. According to the industry distribution chart, Best Buy Co ranks #76 out of 1097 companies in the Retail - Cyclical industry, placing it in the top 6.9%.
Is Best Buy Co's ROE % too high?
Best Buy Co's current ROE % of 36.60% is 14% below median its 10-year median of 42.38. Over the past 10 years, this metric has ranged from a low of 24.04 to a high of 64.52. The Retail - Cyclical industry median ROE % is 6.46. Best Buy Co's value of 36.60% is 466.6% above this industry median. Based on the distribution chart, Best Buy Co ranks #76 out of 1097 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 ROE % compare to TSCO and FIVE?
According to the Retail - Cyclical industry distribution chart, Best Buy Co ranks #76 out of 1097 companies for ROE %. This places Best Buy Co in the top 7% of its industry — outperforming the majority of peers. The industry median ROE % is 6.46. Best Buy Co's value of 36.60% is 466.6% above this benchmark. Historically, Best Buy Co's own ROE % has ranged from 24.04 to 64.52 over the past decade. While the company's 10-year median is 42.38 vs. the industry median of 6.46, 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 ROE % for a Retail - Cyclical company?
The median ROE % among Retail - Cyclical companies is 6.46, based on 1,097 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Best Buy Co's current ROE % of 36.60% is 466.6% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Best Buy Co and its competitors. For the Retail - Cyclical industry, the median ROE % is 6.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Best Buy Co's current ROE % is 36.60%, which is 14% below median its own 10-year median of 42.38. 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 ROE % is 36.60%, which is 14% below median its 10-year median of 42.38 and 466.6% above the Retail - Cyclical industry median of 6.46. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Best Buy Co (FRA:BUY), the current ROE % is 36.60% 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 €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:
ROE %: 36.60% (14% below median its 10-year median of 42.38)
GF Value™: €65.48 vs. price of €66.98 (2.3% above fair value)
Industry Position: 466.6% above the Retail - Cyclical median (#76 of 1097)
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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