HD PE Ratio & Valuation, Is HD Overvalued

Historical Valuation

Home Depot Inc (HD) is now in the Overvalued zone, suggesting that its current forward PE ratio of 25.31 is considered Overvalued compared with the five-year average of 22.09. The fair price of Home Depot Inc (HD) is between 291.06 to 356.06 according to relative valuation method. Compared to the current price of 357.92 USD , Home Depot Inc By Overvalued By 0.52%.

Relative Value

Fair Zone

291.06-356.06

Current Price：357.92

0.52%

Overvalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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Home Depot Inc (HD) has a current Price-to-Book (P/B) ratio of 0.00. Compared to its 3-year average P/B ratio of 201.10, the current P/B ratio is approximately -100.00% higher. Relative to its 5-year average P/B ratio of 224.47, the current P/B ratio is about -100.00% 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 4.52%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.22%, the current FCF yield is about -100.00% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for HD competitors is 1.97, providing a benchmark for relative valuation. Home Depot Inc Corp (HD.N) exhibits a P/S ratio of 2.33, which is 18.19% above the industry average. Given its robust revenue growth of -3.79%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of HD increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of HD in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is HD currently overvalued or undervalued?

What is Home Depot Inc (HD) fair value?

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. The fair price of Home Depot Inc (HD) is between 291.06 to 356.06 according to relative valuation method.

How does HD's valuation metrics compare to the industry average?

The average P/S ratio for HD's competitors is 1.97, providing a benchmark for relative valuation. Home Depot Inc Corp (HD) exhibits a P/S ratio of 2.33, which is 18.19% above the industry average. Given its robust revenue growth of -3.79%, this premium appears unsustainable.

What is the current P/B ratio for Home Depot Inc (HD) as of Mar 09 2026?

As of Mar 09 2026, Home Depot Inc (HD) has a P/B ratio of 0.00. This indicates that the market values HD at 0.00 times its book value.

What is the current FCF Yield for Home Depot Inc (HD) as of Mar 09 2026?

As of Mar 09 2026, Home Depot Inc (HD) has a FCF Yield of 0.00%. This means that for every dollar of Home Depot Inc's market capitalization, the company generates 0.00 cents in free cash flow.

What is the current Forward P/E ratio for Home Depot Inc (HD) as of Mar 09 2026?

As of Mar 09 2026, Home Depot Inc (HD) has a Forward P/E ratio of 25.31. This means the market is willing to pay $25.31 for every dollar of Home Depot Inc's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Home Depot Inc (HD) as of Mar 09 2026?

As of Mar 09 2026, Home Depot Inc (HD) has a Forward P/S ratio of 2.33. This means the market is valuing HD at $2.33 for every dollar of expected revenue over the next 12 months.

HD Valuation