Valuation dashboard for The Home Depot, Inc. (HD) with P/E 23.35, P/B 19.96, EV/EBITDA 15.4 and dividend yield 2.78%. DCF, Graham Number, EPS growth, peer multiples and dividend discount models plus sector comparison against other Consumer Cyclical companies.
The Home Depot, Inc. operates as a prominent retailer specializing in home renovation and improvement. Through its expansive network of "The Home Depot" stores, it furnishes consumers with an extensive array of goods, including building materials, home enhancement products, lawn and garden supplies, decorative items, and facilities maintenance, repair, and operational (MRO) supplies.
What would it be worth at its usual multiples?
Versus its usual multiples: fairly priced · Current P/E 23.3× · Multiples range: $262.51 · $345.96.
At the decade median (24.2×) $346 (+4 %); at its sector median (18.4×) $263 (-21 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
Analysis Summary
The Home Depot, Inc. reported revenue of $164.68B in the most recent fiscal year, growing at a 5-year CAGR of 4.5%. Net income reached $14.16B, with a 1.9% 5-year CAGR.
Trailing-twelve-month margins: gross margin 33.2%, operating margin 12.4%, net margin 8.4%.
At $333.66 (closing price, November 3, 2026), HD trades at a P/E of 23.35 and an ROE of 102.68%. Market capitalisation stands at $332.9B, placing it among large-cap names.
Balance sheet quality for HD: debt-to-equity ratio of 3.77, current ratio of 1.08 over the last 12 months. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Valuation Ratios
| P/E Ratio | 23.35 |
| Price / Book | 19.96 |
| EV / EBITDA | 15.4 |
| Dividend Yield | 2.78% |
Peer Comparison
| Symbol | Company | Market Cap | P/E | P/B | ROE |
|---|---|---|---|---|---|
| HD | The Home Depot, Inc. | $332.9B | 23.35 | 19.96 | 102.7% |
| LOW | Lowe's Companies, Inc. | $119.7B | 18.04 | -71.8% | |
| URI | United Rentals, Inc. | $72.8B | 26.02 | 7.54 | 31.0% |
| 0JVQ.L | Lowe's Companies, Inc. | $111.4B | 16.78 | -71.8% | |
| TYT.L | Toyota Motor Corp. | JPY 36.8T | 8.87 | 1.02 | 11.7% |
| AMZN | Amazon.com, Inc. | $2.7T | 20.27 | 4.32 | 26.7% |
| TSLA | Tesla, Inc. | $1.6T | 437.91 | 14.65 | 3.8% |
| BABA | Alibaba Group Holding Limited | $238.9B | 22.06 | 1.52 | 7.0% |
Price
| Price | $333.66 (closing price, November 3, 2026) |
| Market Cap | $332.9B |
| Exchange | NYSE |
| Country | US |
Profitability
| Return on Equity | 102.68% |
| Return on Invested Capital | 18.80% |
| Return on Assets | 13.01% |
| Gross Margin | 33.21% |
| Operating Margin | 12.43% |
| Net Margin | 8.41% |
Related companies: LOW · URI · 0JVQ.L · TYT.L · AMZN · TSLA · BABA · TM
Explore sector: Consumer Cyclical · Home Improvement
More sections of HD: Overview · Financials · Statistics · Estimates · Technical · Ownership · News · Events
Discover more: Weekly Radar: the S&P 500 through the Buffett and Lynch methods · Companies that pass the Buffett method · Companies that pass the Lynch method · Stocks that pass Graham's defensive investor test today · Investment Academy — learn to analyze stocks