HD Relative Valuation
HD's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, HD is overvalued; if below, it's undervalued.
Historical Valuation
Home Depot Inc (HD) is now in the Fair zone, suggesting that its current forward PE ratio of 23.70 is considered Fairly compared with the five-year average of 21.96. The fair price of Home Depot Inc (HD) is between 334.77 to 404.65 according to relative valuation methord.
Relative Value
Fair Zone
334.77-404.65
Current Price：357.91
Fair
23.25
PE
1Y
3Y
5Y
Trailing
Forward
16.48
EV/EBITDA
Home Depot Inc. (HD) has a current EV/EBITDA of 16.48. The 5-year average EV/EBITDA is 15.39. The thresholds are as follows: Strongly Undervalued below 11.99, Undervalued between 11.99 and 13.69, Fairly Valued between 17.09 and 13.69, Overvalued between 17.09 and 18.79, and Strongly Overvalued above 18.79. The current Forward EV/EBITDA of 16.48 falls within the Historic Trend Line -Fairly Valued range.
19.10
EV/EBIT
Home Depot Inc. (HD) has a current EV/EBIT of 19.10. The 5-year average EV/EBIT is 17.54. The thresholds are as follows: Strongly Undervalued below 13.34, Undervalued between 13.34 and 15.44, Fairly Valued between 19.64 and 15.44, Overvalued between 19.64 and 21.73, and Strongly Overvalued above 21.73. The current Forward EV/EBIT of 19.10 falls within the Historic Trend Line -Fairly Valued range.
2.09
PS
Home Depot Inc. (HD) has a current PS of 2.09. The 5-year average PS is 2.20. The thresholds are as follows: Strongly Undervalued below 1.74, Undervalued between 1.74 and 1.97, Fairly Valued between 2.43 and 1.97, Overvalued between 2.43 and 2.66, and Strongly Overvalued above 2.66. The current Forward PS of 2.09 falls within the Historic Trend Line -Fairly Valued range.
18.80
P/OCF
Home Depot Inc. (HD) has a current P/OCF of 18.80. The 5-year average P/OCF is 17.40. The thresholds are as follows: Strongly Undervalued below 12.59, Undervalued between 12.59 and 15.00, Fairly Valued between 19.81 and 15.00, Overvalued between 19.81 and 22.22, and Strongly Overvalued above 22.22. The current Forward P/OCF of 18.80 falls within the Historic Trend Line -Fairly Valued range.
24.23
P/FCF
Home Depot Inc. (HD) has a current P/FCF of 24.23. The 5-year average P/FCF is 21.17. The thresholds are as follows: Strongly Undervalued below 14.37, Undervalued between 14.37 and 17.77, Fairly Valued between 24.57 and 17.77, Overvalued between 24.57 and 27.97, and Strongly Overvalued above 27.97. The current Forward P/FCF of 24.23 falls within the Historic Trend Line -Fairly Valued range.
Home Depot Inc (HD) has a current Price-to-Book (P/B) ratio of 29.39. Compared to its 3-year average P/B ratio of 208.53 , the current P/B ratio is approximately -85.91% higher. Relative to its 5-year average P/B ratio of 223.99, the current P/B ratio is about -86.88% higher. Home Depot Inc (HD) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.43%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.31% , the current FCF yield is about -100.00% lower.
28.84
P/B
Median3y
208.53
Median5y
223.99
3.91
FCF Yield
Median3y
4.43
Median5y
4.31
Competitors Valuation Multiple
The average P/S ratio for HD's competitors is 0.00, providing a benchmark for relative valuation. Home Depot Inc Corp (HD) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 2.82%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of HD decreased by 9.15% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 40.22B to 41.35B.
The secondary factor is the Margin Expansion, contributed -3.97%to the performance.
Overall, the performance of HD in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
Is Home Depot Inc (HD) currently overvalued or undervalued?
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