Home Depot (HD) Stock Analysis
NYQ · Consumer Cyclical · Home Improvement Retail
$293.17
-0.03 (-0.01%)
HD Interactive Price Chart & Trading Signals
HD Stock Snapshot — Valuation, Risk & Technical Signals
HD Key Fundamentals, Analyst Targets & Company Profile
Key Financial Ratios
Market Cap
$292.49B
P/E Ratio
20.53
Forward P/E
18.29
PEG Ratio
2.47
P/B Ratio
17.61
EPS
$14.28
Dividend Yield
3.18%
52W Range
$289.10 – $410.95
Beta
0.95
Volume
0.8M
ROE
104.3%
Profit Margin
8.4%
Revenue Growth
5.7%
Gross Margin
32.8%
EV/EBITDA
14.35
Analyst Target
$377.19
The trailing price-to-earnings ratio stands at 20.5x. Forward P/E of 18.3x implies earnings expansion expected. Price-to-book is 17.61x. EV/EBITDA sits at 14.35x. Market capitalization is $292.49B. Revenue is growing at 5.7% on a trailing basis. Earnings are expanding at 4.6%. Profit margins are 8.4%. Return on equity is 104.3%. Beta of 0.95 indicates market-average volatility.
Analyst Consensus
Recommendation
Buy
Low Target
$310.00
Mean Target
$377.19
High Target
$425.00
Based on 32 analysts
About Home Depot
The Home Depot, Inc. operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, baths, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, windows, and window coverings. In addition, it provides tool and equipment rental services. The company serves consumers, such as do-it-yourself homeowners and do-it-for-me customers; and professional renovators/remodelers, general contractors, homebuilders, maintenance professionals, handymen, property managers, building service contractors and specialty tradespeople, such as electricians, landscapers, insulation installers, plumbers, painters, pool contractors, roofers, and wallboard and ceiling installers. It sells its products through websites and its mobile applications, including homedepot.com; homedepot.ca and homedepot.com.mx; blinds.com, justblinds.com, and americanblinds.com for custom window coverings; constructionresourcesusa.com or design-oriented surfaces, appliances, and architectural specialty products; thecompanystore.com, an online site for textiles and décor products; hdsupply.com for maintenance, repair, and operations products and related services; and srsdistribution.com, heritagelandscapesupplygroup.com, heritagepoolsupplygroup.com, and gms.com for roofing and building materials, landscape, and pool products; and The Home Depot stores. The Home Depot, Inc. was incorporated in 1978 and is headquartered in Atlanta, Georgia.
HD Deep Dive Analysis
Bottom Line
Verdict
OvervaluedBest for
General investorWatch out for
Premium valuationNon-zero inputs
4/5Counts non-zero values for price, P/E, beta, macro risk, and revenue growth; zero may mean unavailable or be a genuine zero.
The Home Depot, Inc. (HD) trades above our multi-model fair value estimate of $229.92 by approximately 21.6%. Trailing P/E: 20.5x. Profitability signals include profit margin of 8.4% and return on equity of 104.3%. Recent growth metrics show revenue growth of 5.7% and earnings growth of 4.6%. Risk profile: beta of 0.95. Consensus: buy.
Valuation, Growth & Risk
Valuation
Overvalued
P/E 20.5x
Price is above what fundamentals suggest.
Growth
Expanding
Rev 5.7%
Revenue is outpacing the market.
Valuation Snapshot
The Home Depot, Inc. (HD) trades above our multi-model fair value estimate of $229.92 by approximately 21.6%. The trailing price-to-earnings ratio stands at 20.5x. Forward P/E of 18.3x suggests earnings compression ahead. Price-to-sales is 1.7x. Price-to-book is 17.6x. EV/EBITDA sits at 14.3x. Market capitalization is $292.49B.
Why it matters: Paying a premium works only if the company keeps growing faster than expected.
Growth & Profitability
Revenue is growing at 5.7% on a trailing basis. Earnings are expanding at 4.6%. Profit margins are 8.4%. Return on equity is 104.3%. Return on assets is 12.1%.
Why it matters: Growing revenue with healthy margins usually means the business is gaining market share or pricing power.
Risk Profile
Beta of 0.95 indicates market-average volatility. Net debt position is $61.10B.
Why it matters: Lower risk means steadier returns, but often with less upside in bull markets.
Analyst Context
Analyst consensus target of $377.19 implies 28.7% upside. Target range spans $310.00 to $425.00. 32 analysts cover the stock. Consensus recommendation: buy.
Why it matters: Analyst targets reflect what professionals expect over 12 months. A wide gap between price and target can mean the market disagrees with the consensus.
Data Methodology & Sources
Market Data (Facts)
- Price, volume, and market cap: Yahoo Finance (may be delayed)
- P/E, EPS, revenue, and debt: Yahoo Finance fundamentals
- Analyst estimates: Yahoo Finance (coverage and update times vary)
- Insider transactions: Yahoo Finance (reporting may be delayed)
QuantSoar Model (Derived)
- Fair value: available outputs from seven models; outliers are filtered using MAD (k=3.5), then combined with fixed model weights.
- Margin of Safety = (Fair Value − Displayed Price) / Displayed Price × 100
- Composite Score: 40% Value + 30% Momentum + 30% Risk
- Verdict Gauge: Base 50 + Valuation (up to ±25) + Whale sentiment (up to ±10) + Insider buying (+5) + Macro risk (up to ±10) + Technical signal (up to ±10). Analyst consensus is separate.
Model outputs are estimates based on available data and are not investment advice. Cross-check with primary sources before making investment decisions.
HD Overvalued
The Home Depot, Inc. (HD) trades above our multi-model fair value estimate of $229.92 by approximately 21.6%.
Frequently Asked Questions
ValuationIs HD stock overvalued right now?
ValuationWhat is HD fair value based on current fundamentals?
RiskHow risky is HD compared with other stocks?
GrowthIs HD still growing?
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About the Author
Phasakorn Traklang (Peach) — Founder
Phasakorn Traklang (Peach) is the founder of QuantSoar, bringing expertise in SEO, web development, and technical analytics to build an AI-powered investment platform accessible to retail investors worldwide.
Connect on LinkedInInvestment Disclaimer: Tax treatment can depend on tax residence, account type, and tax year. This information is general and is not personal tax or investment advice. SEC
Data: Yahoo Finance / SEC EDGAR / Alpha Vantage / Finnhub. AI outputs verified against source data.