Home Depot Beta

HD
 Stock
  

USD 279.08  4.81  1.75%   

Home Depot fundamentals help investors to digest information that contributes to Home Depot's financial success or failures. It also enables traders to predict the movement of Home Depot Stock. The fundamental analysis module provides a way to measure Home Depot's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Home Depot stock. This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.
  
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Home Depot Beta Analysis

Home Depot's Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it will be expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
 2010 2015 2020 2022 (projected)
Consolidated Income6.34 B11.24 B16.43 B15.42 B
Direct Expenses54.22 B72.65 B100.33 B98.73 B
Beta 
 = 
Covariance 
Variance 
More About Beta | All Equity Analysis

Current Home Depot Beta

    
  0.98  
Most of Home Depot's fundamental indicators, such as Beta, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Home Depot is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Home Depot Beta Driver Correlations

Understanding the fundamental principles of building solid financial models for Home Depot is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Beta. Since Home Depot's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Home Depot's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Home Depot's interrelated accounts and indicators.
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Compare to competition

In accordance with the recently published financial statements, Home Depot has a Beta of 0.98. This is 16.67% higher than that of the Consumer Cyclical sector and significantly higher than that of the Home Improvement Retail industry. The beta for all United States stocks is notably lower than that of the firm.

Home Depot Beta Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Home Depot's direct or indirect competition against its Beta to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Home Depot could also be used in its relative valuation, which is a method of valuing Home Depot by comparing valuation metrics of similar companies.
Home Depot is currently under evaluation in beta category among related companies.

Home Depot Institutional Holders

Institutional Holdings refers to the ownership stake in Home Depot that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Home Depot's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Home Depot's value.
Security TypeSharesValue
Vanguard Group IncCommon Shares93.3 M27.9 B
Blackrock IncCommon Shares72.1 M21.6 B
State Street CorpCommon Shares45.6 M13.7 B
Capital World InvestorsCommon Shares40.2 M12 B
Geode Capital Management LlcCommon Shares17.3 M5.2 B
Fmr LlcCommon Shares15.9 M4.8 B
Bank Of America CorpCommon Shares14.9 M4.5 B
Let's try to break down what Home Depot's beta means in this case. Home Depot returns are very sensitive to returns on the market. As the market goes up or down, Home Depot is expected to follow.

Home Depot Fundamentals

About Home Depot Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Home Depot's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Home Depot using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Home Depot based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
The Home Depot, Inc. operates as a home improvement retailer. The Home Depot, Inc. was incorporated in 1978 and is based in Atlanta, Georgia. Home Depot operates under Home Improvement Retail classification in the United States and is traded on New York Stock Exchange. It employs 500000 people.

Home Depot Investors Sentiment

The influence of Home Depot's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Home Depot. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Home Depot Implied Volatility

    
  29.83  
Home Depot's implied volatility exposes the market's sentiment of Home Depot stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Home Depot's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Home Depot stock will not fluctuate a lot when Home Depot's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Home Depot in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Home Depot's short interest history, or implied volatility extrapolated from Home Depot options trading.

Current Sentiment - HD

Home Depot Investor Sentiment

Nearly all of Macroaxis users are currently bullish on Home Depot. What is your judgment towards investing in Home Depot? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish

Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Home Depot using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.

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Please check Home Depot Piotroski F Score and Home Depot Altman Z Score analysis. Note that the Home Depot information on this page should be used as a complementary analysis to other Home Depot's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Piotroski F Score module to get Piotroski F Score based on binary analysis strategy of nine different fundamentals.

Complementary Tools for Home Depot Stock analysis

When running Home Depot price analysis, check to measure Home Depot's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Home Depot is operating at the current time. Most of Home Depot's value examination focuses on studying past and present price action to predict the probability of Home Depot's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Home Depot's price. Additionally, you may evaluate how the addition of Home Depot to your portfolios can decrease your overall portfolio volatility.
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Is Home Depot's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Home Depot. If investors know Home Depot will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Home Depot listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.06
Market Capitalization
286.8 B
Quarterly Revenue Growth YOY
0.038
Return On Assets
0.2
Return On Equity
0.85
The market value of Home Depot is measured differently than its book value, which is the value of Home Depot that is recorded on the company's balance sheet. Investors also form their own opinion of Home Depot's value that differs from its market value or its book value, called intrinsic value, which is Home Depot's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Home Depot's market value can be influenced by many factors that don't directly affect Home Depot's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Home Depot's value and its price as these two are different measures arrived at by different means. Investors typically determine Home Depot value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Home Depot's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.