TGM's two-stage DCF values Best Buy Co., Inc. (BBY) between $52.83 and $81.38 depending on assumptions, with a base case of $63.02. Growth is taken from the company's own record (5-year revenue CAGR (FCF growth too volatile to use) (floored at 2%)), fading to 2.5% long-run; the discount rate (10.6%) reflects its beta.
What would today's price require?
$89.33 is justified only if free cash flow grows about +10.7% a year (fading to 2.5% long-run) at a 10.6% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 0.5%/yr | 11.6% | $52.83 |
| Base case | 2.0%/yr | 10.6% | $63.02 |
| Optimistic | 5.0%/yr | 9.6% | $81.38 |
| Third-party model estimate (FMP) | independent reference · retrieved Sep 8, 2026 · assumptions not provided | $71.64 | |
The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.
Current Price
$89.33
Market-Implied Growth
+10.7%/yr
vs -15.9% 5Y actual
Model Scenario Range
$52.83 – $81.38
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for BBY (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $1.1B · 0.21B shares · net debt $61.0M
Estimated Fair Value
$63.02
-29.5% vs $89.33
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 2.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $89.33; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.6% | $74.22 | $78.61 | $83.70 | $89.70 | $96.86 |
| 9.6% | $65.00 | $68.23 | $71.91 | $76.14 | $81.05 |
| 10.6% | $57.80 | $60.26 | $63.02 | $66.14 | $69.69 |
| 11.6% | $52.03 | $53.95 | $56.09 | $58.46 | $61.13 |
| 12.6% | $47.29 | $48.84 | $50.53 | $52.39 | $54.45 |
