Discounted Cash Flow

Best BUY Co. Inc.

BBY · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2017 $39.4b $1.2b $2.0b 3.1% $3.86
2018 $42.2b (7.0%) $1.0b (-18.6%) $1.5b (-26.0%) 2.4% (-23.9%) $3.33 (-13.7%)
2019 $42.9b (1.7%) $1.5b (46.4%) $1.6b (9.4%) 3.4% (43.9%) $5.30 (59.2%)
2020 $43.6b (1.8%) $1.5b (5.3%) $1.8b (14.7%) 3.5% (3.4%) $5.82 (9.8%)
2021 $47.3b (8.3%) $1.8b (16.7%) $4.2b (131.3%) 3.8% (7.7%) $6.93 (19.1%)
2022 $51.8b (9.5%) $2.5b (36.5%) $2.5b (-40.3%) 4.7% (24.6%) $9.94 (43.4%)
2023 $46.3b (-10.6%) $1.4b (-42.2%) $894.0m (-64.5%) 3.1% (-35.4%) $6.31 (-36.5%)
2024 $43.5b (-6.1%) $1.2b (-12.5%) $675.0m (-24.5%) 2.9% (-6.8%) $5.70 (-9.7%)
2025 $41.5b (-4.4%) $927.0m (-25.3%) $1.4b (106.2%) 2.2% (-21.8%) $4.31 (-24.4%)
2026 $41.7b (0.4%) $1.1b (15.3%) $1.3b (-9.6%) 2.6% (14.9%) $5.06 (17.4%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model