Home Depot Stock Valuation

HD -  USA Stock  

USD 295.99  0.04  0.0135%

What is the value of Home Depot today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Home Depot, is its stock price multiplied by the total number of shares outstanding, calculating Home Depot's enterprise value requires a different approach. It uses Home Depot's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Home Depot Tangible Asset Value is projected to increase significantly based on the last few years of reporting. The past year's Tangible Asset Value was at 64.43 Billion.
Home Depot retains a regular Real Value of $358.05 per share. The prevalent price of the firm is $295.99. At this time, the firm appears to be undervalued. Our model calculates the value of Home Depot from evaluating the firm fundamentals such as Shares Outstanding of 1.04 B, profit margin of 10.79 %, and Return On Asset of 20.45 % as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage purchasing undervalued assets and exiting overvalued assets since, at some point, asset prices and their ongoing real values will come together.
  
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Home Depot Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Home Depot's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 295.99
Share
Please note that Home Depot's price fluctuation is very steady at this time. Calculation of the real value of Home Depot is based on 3 months time horizon. Increasing Home Depot's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Home Depot is useful when determining the fair value of the Home Depot stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Home Depot. Since Home Depot is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Home Depot Stock. However, Home Depot's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
268.77
Downside
358.05
Real Value
360.29
Upside
Estimating the potential upside or downside of Home Depot helps investors to forecast how Home Depot stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Home Depot more accurately as focusing exclusively on Home Depot's fundamentals will not take into account other important factors:
Earnings
Estimates (13)
LowProjected EPSHigh
15.0015.4715.89
Details
Hype
Prediction
LowEstimated ValueHigh
297.47299.71301.95
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.991.001.01
Details
21 Analysts
Consensus
LowTarget PriceHigh
315.00409.58470.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Home Depot's intrinsic value based on its ongoing forecasts of Home Depot's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Home Depot's closest peers. When choosing an evaluation method for Home Depot, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Home Depot Valuation Drivers Correlation

Many accounts on the financial statements of Home Depot are highly interrelated and sometimes correlated. Consequently, when conducting Home Depot's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Home Depot
Click cells to compare fundamentals

Home Depot Valuation Trend

Knowing Home Depot's actual value is paramount for traders to make sound investment determinations. Home Depot's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Home Depot's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Home Depot's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Home Depot Market Cap

Home Depot is one of the top stocks in market capitalization category among related companies. Market capitalization of Home Improvement Retail industry is currently estimated at about 605.02 Billion. Home Depot totals roughly 302.51 Billion in market capitalization claiming about 50% of equities under Home Improvement Retail industry.
Capitalization  Revenue  Total debt  Workforce  Valuation

Home Depot Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Home Depot's current stock value. Our valuation model uses many indicators to compare Home Depot value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Home Depot competition to find correlations between indicators driving Home Depot's intrinsic value. More Info.
Home Depot is one of the top stocks in last dividend paid category among related companies. It is one of the top stocks in price to earning category among related companies reporting about  2.93  of Price to Earning per Last Dividend Paid. The current year Price to Earnings Ratio is expected to grow to 24.27, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are forecasted to decline to about 24.6 B.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Home Depot by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Home Depot's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Home Depot's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Home Depot's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Home Depot and how it compares across the competition.

About Home Depot Valuation

The equity valuation mechanism determines the current worth of Home Depot on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Home Depot. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Home Depot based exclusively on its fundamental and basic technical indicators. By analyzing Home Depot's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Home Depot's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Home Depot. We calculate exposure to Home Depot's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Home Depot's related companies.
Last ReportedProjected for 2022
Gross Profit50.8 B50.4 B
Profit Margin 0.11  0.11 
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 Quarterly Enterprise Value

422.95 Billion

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Home Depot's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Home Depot's value is low or high relative to the company's performance and growth projections. Determining the market value of Home Depot can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Home Depot represents a small ownership stake in the entity. As a stockholder of Home Depot, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Home Depot Dividends Analysis For Valuation

Please note that Home Depot has scaled down on payment of dividends at this time. The current year Price to Earnings Ratio is expected to grow to 24.27, whereas Accumulated Retained Earnings Deficit are forecasted to decline to about 66.2 B.
There are various types of dividends Home Depot can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Home Depot shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Home Depot directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Home Depot pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Home Depot by the value of the dividends paid out.

Home Depot Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Home Depot does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.32
Earnings Quarterly Growth20.30%
Revenue Growth9.80%
Payout Ratio43.09%
Enterprise Value To Ebitda18.34
Earnings Growth23.30%
Enterprise Value To Revenue3.19

Home Depot Current Valuation Indicators

Valuation refers to the process of determining the present value of Home Depot and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Home Depot we look at many different elements of the entity such as Home Depot's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Home Depot's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Home Depot's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Home Depot, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Home Depot's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Home Depot's worth.
Please check Risk vs Return 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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.
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.