Is Home Depot, Inc. (HD) undervalued or overvalued?

Our model estimates a fair value of about $329 against a price of $309.63 (Fair, +6% to fair value). It blends a 10-year DCF, sector multiples and earnings-power value and is a model estimate, not advice.

What is the X-Ray Score for HD?

Home Depot, Inc. has an X-Ray Score of 43 out of 100, built from valuation, growth, profitability, financial health and dividend lenses ranked against Consumer Discretionary peers.

Where does the data for HD come from?

Financial statements come from SEC EDGAR filings, prices from exchange price feeds, and industry betas and equity risk premium from Damodaran Online (NYU Stern).

Home Depot, Inc. (HD)

Consumer Discretionary · Home Improvement Retail · US stock · S&P 500 component

$309.63 ▲ +1.39 (0.45%)

At close 16 Oct 2026 · USD · Volume 7,034,099

Compare with LOW Historical data Research report SEC filings

Fair valueFair

$329 +6.2% to fair value

$164fair band $230–$428$493

Day's range

$308.32 – $314.66

52-week range

$277.15 – $389.18

About Home Depot, Inc.

Home Depot operates large home improvement stores and an online store in North America. It carries tools, building materials, appliances, flooring, paint, lumber and garden supplies, aimed at do-it-yourself homeowners and at professional contractors, remodelers and tradespeople. Services such as installation and tool rental are also offered, and the company supplies professional customers through specialist distribution businesses.

Home Depot earns its revenue from product sales in its stores and online, and from services such as installation. Revenue for the last twelve months was $169.2 billion, and it has grown at 1.5% a year across the last three years. The operating margin is 12.4%, and the business earns a profit of 24% on the capital invested in it. It has net debt of 2.1 times EBITDA. The company pays a dividend with a yield of 3.0%. On the site's X-Ray Score it receives 43 out of 100.

Written with AI from public information and the filing figures on this page, then checked automatically for unsupported numbers. It can contain mistakes: read the company's own filings below before relying on it.

Price chart

Historical data & CSV

52-wk range $277.15 – $389.18Volume 7,034,099Daily, split-adjusted

Vitals

Market cap$308.4B

52-week range$277.15 – $389.18

Volume (last day)7,034,099

P/E (TTM)21.7

EBIT / EV yield5.9%

Free-cash-flow yield4.9%

Dividend yield3.0%

Revenue (TTM)$169.2B

Net income (TTM)$14.2B

Operating margin12.4%

Return on capital23.7%

Debt incl. leases$52.9B

Cash & securities$2.1B

Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies like Apple). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.

Fair value estimate

$329model spread $317 – $340

Fair +6.2% to fair value

Equal blend of three models: peer multiples, a fundamentals-adjusted multiple (growth, ROIC and margin) and a 10-year DCF scaled to the market's average. Earnings-power value (no growth) is a floor and not part of the blend. Model uncertainty is Medium, so the safety margin is 30%.

Price $310

Undervalued < $230Fair $230 – $428Overvalued > $428

10-year DCF (market-scaled)

$244

Peer multiples

$313

Earnings power floor (not blended)

$126

Fundamentals-adjusted multiple

$430

Growth the price implies

14.9%/yr

A model estimate, not a price target or recommendation. Inputs: risk-free 5.09%, equity risk premium 4.23% (Damodaran). How it works.

What this means

Weak business, fairly priced

The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.

Before you invest · decision checklist

I understand how this company makes money Business quality is average or better 44 The price is not above fair value $329 fair value Debt looks manageable 2.1× EBITDA Revenue has been growing 1.5% a year Profits are backed by cash There are no red flags none raised I know what share of my savings this would be

Ticked boxes are filled in from our data; the rest are yours to answer.

The five-lens scan

Every score explained in one sentence, ranked against Consumer Discretionary peers. Open a lens to see the numbers behind it.

Valuation Weak

45/100

Expensive against its sector on earnings and cash flow.

See the numbers →

EBIT / EV yield5.9%

Free-cash-flow yield4.9%

Fair value vs price1.1×

Growth Weak

30/100

Growing slower than most of its sector.

See the numbers →

Revenue growth (3y)1.5%

EPS growth (3y)-5.2%

Growth consistency80%

Profitability Weak

48/100

Earns lower returns on its capital than most peers.

See the numbers →

Return on invested capital23.7%

Operating margin12.4%

Gross profitability51.4%

Financial health Weak

40/100

Balance sheet is more stretched than most peers.

See the numbers →

Piotroski F-Score4 / 9

Net debt / EBITDA2.1×

Interest cover8.7×

Dividends Fair

54/100

Dividend is typical for its sector.

See the numbers →

Dividend yield3.0%

Dividends vs free cash flow61%

Dividend growth5.5%

Quarterly results: last 6 quarters

+9.4%

May '25

+4.9%

Aug '25

+2.8%

Nov '25

-3.8%

Feb '26

+4.8%

May '26

+5.7%

Aug '26

Revenue against the same quarter a year earlier. Latest quarter revenue $47.9B, diluted EPS $4.79.

Compare with peers

LOW Lowes Companies Inc49

Other Home Improvement Retail companies by X-Ray Score.

Fundamentals checklist

● 1 Good · ● 10 Average · ● 5 Bad

Cash quality

Earnings backed by cashBad

Free-cash-flow yieldAverage

Risk models

Altman Z''Good

Piotroski F-ScoreBad

Growth

EPS growth (3y)Bad

Free-cash-flow growth (3y)Bad

Revenue growth (3y)Bad

Growth consistencyAverage

Balance sheet

Current ratioAverage

Net debt / EBITDAAverage

Interest coverAverage

Valuation

Fair value vs priceAverage

EBIT / EV yieldAverage

Profitability

Return on invested capitalAverage

Operating marginAverage

Gross profitabilityAverage

Each check is graded against the company's sector, not a fixed number. Checklist score 40/100.

Financials

	FY22	FY23	FY24	FY25	FY26
Revenue	$151.2B	$157.4B	$152.7B	$159.5B	$164.7B
Operating income	$23.0B	$24.0B	$21.7B	$21.5B	$20.9B
Net income	$16.4B	$17.1B	$15.1B	$14.8B	$14.2B
Operating cash flow	$16.6B	$14.6B	$21.2B	$19.8B	$16.3B
Operating margin	15.2%	15.3%	14.2%	13.5%	12.7%
Free cash flow	$14.0B	$11.5B	$17.9B	$16.3B	$12.6B
Diluted EPS	$15.53	$16.69	$15.11	$14.91	$14.23

Fiscal years, from SEC filings.

Technical summary

Daily

Bearish

6 bullish · 1 neutral · 9 bearish

Weekly

Strongly bearish

1 bullish · 1 neutral · 10 bearish

Monthly

Strongly bearish

0 bullish · 1 neutral · 7 bearish

Moving averages (daily)

SMA 10	293.8	Bullish
EMA 10	297.2	Bullish
SMA 20	292.5	Bullish
EMA 20	297.1	Bullish
SMA 50	312.2	Bearish
EMA 50	307.1	Bullish
SMA 100	321.7	Bearish
EMA 100	317.0	Bearish
SMA 200	332.2	Bearish
EMA 200	328.5	Bearish

Oscillators (daily)

RSI (14)	60.26	Neutral
MACD (12, 26)	-2.42	Bearish
Momentum (12)	8.84	Bullish
Stochastic %K (14)	86.59	Bearish
Williams %R (14)	-13.41	Bearish
CCI (20)	200.9	Bearish

Pivot points (classic, last session)

300.7

304.5

307.1

Pivot

310.9

313.4

317.2

319.8

Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.

Dividends

Paid, last 12 months

9.29 USD

Yield on today's price

3.00%

Frequency

Quarterly

Next ex-dividend date

Not announced

Ex-dividend date	Amount per share
3 Sep 2026	2.3300
4 Jun 2026	2.3300
12 Mar 2026	2.3300
4 Dec 2025	2.3000
4 Sep 2025	2.3000
5 Jun 2025	2.3000
13 Mar 2025	2.3000
27 Nov 2024	2.2500
29 Aug 2024	2.2500
30 May 2024	2.2500
6 Mar 2024	2.2500
29 Nov 2023	2.0900