It is a mistake to ignore this company. The business is trading at very cheap levels due to the market believing its growth days are gone.

Investors currently believe a return to normal will stop consumers from buying Best Buy (BBY) products and services for home office and other remote needs. As we currently see the pandemic is not stopping any time soon and the current trend of remote work could be with us for years to come even after the pandemic falls from the news.

Workers have tasted the sweet freedom of working at home. According to Accenture 83% of respondents are in favor of a permeant split between at home and in the office working environment.

With this trend continuing Best Buy will continue to be a major beneficiary of office worker spending. This continued growth is not priced in the stock. The shares should be easily worth 10.6 times EBITDA or around $178 per share. This is a price a private buyer would likely be willing to pay for the entire business.

The current valuation is 35% below this estimation at only 7.4 times EBITDA.

Best Buy will continue to benefit from today's connected electronics world, it is trading at a great value and you should buy shares today.

Disclosure: I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. The information provided should NOT be considered advice. The topics discussed are risky and have the potential to lose a substantial amount. I am not an investment professional and therefore do not offer individual financial advice. Please do your own research before investing.

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