Home Depot Inc
Exchange: NYSESector: Consumer CyclicalIndustry: Home Improvement Retail
The Home Depot is the world's largest home improvement specialty retailer. At the end of the fiscal year 2025, the company operated a total of 2,359 retail stores and over 1,250 SRS locations across all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The Company employs over 470,000 associates. The Home Depot's stock is traded on the New York Stock Exchange and is included in the Dow Jones industrial average and Standard & Poor's 500 index. About Google Cloud Google Cloud offers a powerful, optimized AI stack — including AI infrastructure, leading models like Gemini, data management capabilities, multicloud security solutions, developer tools and platform, as well as agents and applications — that enables organizations to transform their business for the Agentic Era. Customers in more than 200 countries and territories turn to Google Cloud as their trusted technology partner. SOURCE Google Cloud
Did you know?
Free cash flow has been growing at 2.3% annually.
Current Price
$335.89
-1.26%GoodMoat Value
$266.59
20.6% overvaluedProfile
Valuation (TTM)
Market Cap$334.38B
P/E23.62
EV$393.38B
P/B26.10
Shares Out995.51M
P/Sales2.03
Revenue$164.68B
EV/EBITDA15.93
Home Depot Inc (HD) Stock Analysis
GoodMoat Analysis
Home Depot is a high-quality business with a strong competitive moat, but it is currently priced at a premium to its estimated fair value. The company's massive scale, brand power, and supply chain integration create durable advantages, yet recent revenue declines and a high valuation present a mixed picture for value investors.
Read full analysis
Home Depot Inc is the world's largest home improvement retailer, operating a vast network of stores and a growing digital platform. Applying the GoodMoat framework, the company demonstrates a strong competitive moat (likely scoring 5+). Key advantages include its immense scale privilege, which creates cost efficiencies and supplier leverage, and a powerful brand that is mission-critical for professional contractors. Its vertical integration through proprietary supply chain and distribution networks also serves as a significant barrier to competition. Financially, it exhibits high-quality indicators like a robust ROE of 110.5% and consistent free cash flow generation, with a yield of 3.8%. However, the current investment case is mixed. While the business passes the Moat & Quality Gate, it faces headwinds including a -3.8% YoY revenue decline and high financial leverage with a Debt/Equity ratio of 5.1. Most critically, the current price of $332.51 is approximately 25% above the GoodMoat Target fair value estimate of $266.59, indicating an unfavourable or marginal margin of safety per the framework's valuation bands. This places the stock in the 'With Caution' category of the Decision Framework, as it requires perfect execution to justify its premium valuation amidst cyclical pressures. For a value investor, it represents a high-quality business that may warrant deeper investigation, but only at a more attractive entry point.
Market Cap$334.38B
Current Price$335.89
P/E Ratio23.62
Forward P/E—
PEG Ratio-1.59
EPS$14.23
Book Value$12.87
P/B Ratio26.10
HD Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 2.3% FCF growth (CAGR)
Cash vs Debt
Net Debt: 64.0B
Revenue
110.2B
FY20
132.1B
FY21
151.2B
FY22
157.4B
FY23
152.7B
FY24
159.5B
FY25
164.7B
FY26
Net Income
11.2B
FY20
12.9B
FY21
16.4B
FY22
17.1B
FY23
15.1B
FY24
14.8B
FY25
14.2B
FY26
HD 52-Week Range
$318.77
$417.79
50-Day MA: $348.18200-Day MA: $367.83
Did you know?
Free cash flow has been growing at 2.3% annually.
Home Depot Inc (HD) Financial Summary
Home Depot Inc (HD) is a Consumer Cyclical company in the Home Improvement Retail industry, listed on NYSE. The stock currently trades at $335.89 with a market capitalization of $334.38B.
Key valuation metrics include a P/E ratio of 23.62, price-to-book ratio of 26.10, and EPS of $14.23. The company reports a profit margin of 8.6% and return on equity of 110.5%.
HD Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $334.38B |
| P/E Ratio | 23.62 |
| EPS | $14.23 |
| P/B Ratio | 26.10 |
| P/S Ratio | 2.03 |
| EV/EBITDA | 15.93 |
| Dividend Yield | 2.74% |
| Profit Margin | 8.6% |
| Return on Equity | 110.5% |
| Debt/Equity | 5.10 |
HD Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY20 | $110.22B | $11.24B |
| FY21 | $132.11B | $12.87B |
| FY22 | $151.16B | $16.43B |
| FY23 | $157.40B | $17.11B |
| FY24 | $152.67B | $15.14B |
| FY25 | $159.51B | $14.81B |
| FY26 | $164.68B | $14.16B |
Home Depot Inc (HD) Valuation
Based on GoodMoat's DCF model, Home Depot Inc has a fair value estimate of $266.59. At the current price of $335.89, the stock appears 26.0% overvalued relative to our intrinsic value estimate.
HD Quality Indicators
Home Depot Inc maintains a profit margin of 8.6% and an operating margin of 12.7%. Return on equity stands at 110.5%. The current ratio is 1.06. Debt-to-equity ratio is 5.10.
About Home Depot Inc
The Home Depot is the world's largest home improvement specialty retailer. At the end of the fiscal year 2025, the company operated a total of 2,359 retail stores and over 1,250 SRS locations across all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The Company employs over 470,000 associates. The Home Depot's stock is traded on the New York Stock Exchange and is included in the Dow Jones industrial average and Standard & Poor's 500 index. About Google Cloud Google Cloud offers a powerful, optimized AI stack — including AI infrastructure, leading models like Gemini, data management capabilities, multicloud security solutions, developer tools and platform, as well as agents and applications — that enables organizations to transform their business for the Agentic Era. Customers in more than 200 countries and territories turn to Google Cloud as their trusted technology partner. SOURCE Google Cloud
HD Free Cash Flow
Home Depot Inc generated $12.65B in trailing twelve-month free cash flow, representing an FCF yield of 3.78%. This moderate FCF yield indicates reasonable cash generation.
HD Shares Outstanding
Home Depot Inc has 1.00 billion shares outstanding at a share price of $335.89, giving it a market capitalization of $334.38B.
HD Recent Insider Trades
Recent insider transactions at Home Depot Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| McPhail Richard V (EVP & CFO) | SELL | 2,550 | $940669.50 |
| Deaton John A. (EVP - Supply Chain & Prod. Dev) | SELL | 1,793 | $661617.00 |
| Roseborough Teresa Wynn (EVP, Gen. Counsel & Corp. Sec.) | SELL | 2,608 | $908835.84 |