Consumer Discretionary · Home Improvement Retail · US stock · price as of 16 Oct 2026
Key indicators
Price
$309.63
52-week range
$277.15 – $389.18
Market cap
$308.4B
P/E (trailing)
21.7×
EV / EBITDA
14.7×
Free-cash-flow yield
4.9%
Dividend yield
3.0%
Revenue (last 12 months)
$169.2B
Revenue growth (3y a year)
1.5%
Operating margin
12.4%
Return on invested capital
23.7%
Net debt / EBITDA
2.1×
Fair value
Blended fair value$328.91 range $317 – $340
Versus priceFair+6% to fair value
Peer multiples
$312.60
Fundamentals-adjusted multiple
$430.16
10-year DCF (market-scaled)
$243.96
Earnings power value (floor, not blended)
$125.54
Model uncertainty
Medium
X-Ray Score
43/ 100 · High confidence · ahead of 23% of sector peers
Valuation45
Growth30
Profitability48
Financial health39
Dividends54
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
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%.
StocksXray gives Home Depot, Inc. an X-Ray Score of 43 out of 100 (high confidence), ahead of 23% of the S&P 500 stocks in its sector. Its strongest lens is dividends (54) and its weakest is growth (30).
Our fair value blend is $328.91 (range $316.94 to $340.04). At $309.63 the stock trades 6% below that blend, so the label is "Fair" with medium model uncertainty. Fair value is a range, not a price target.
XStocksXray
Home Depot, Inc. (HD)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2022
FY2023
FY2024
FY2025
FY2026
Now
Price
$324.25
$287.20
$331.18
$393.42
$366.63
$309.63
Market cap
$343.1B
$294.4B
$331.8B
$390.7B
$364.8B
$308.4B
P/E
20.9×
17.2×
21.9×
26.4×
25.8×
21.7×
EV / revenue
2.5×
2.1×
2.4×
2.8×
2.5×
2.1×
EV / EBITDA
14.7×
12.5×
15.0×
17.8×
17.2×
14.7×
Price / free cash flow
24.5×
25.6×
18.5×
23.9×
28.8×
20.4×
Free-cash-flow yield
4.1%
3.9%
5.4%
4.2%
3.5%
4.9%
Price / book
–
188.5×
317.9×
58.8×
28.5×
18.6×
Dividend yield
2.04%
2.65%
2.52%
2.29%
2.51%
3.00%
Fundamentals checklist ● 1 Good · ● 10 Average · ● 5 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−4.2%Bad
Free-cash-flow yield4.9%Average
Risk models
Altman Z score4.6×Good
Piotroski F-Score4 of 9Bad
Growth
EPS growth (3y)−5.2%Bad
Free-cash-flow growth (3y)3.2%Bad
Revenue growth (3y)1.5%Bad
Growth consistency80%Average
Balance sheet
Current ratio1.1×Average
Net debt / EBITDA2.1×Average
Interest cover8.7×Average
Valuation
Fair value vs price1.1×Average
EBIT / EV yield5.9%Average
Profitability
Return on invested capital23.7%Average
Operating margin12.4%Average
Gross profitability51.4%Average
XStocksXray
Home Depot, Inc. (HD)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY22
FY23
FY24
FY25
FY26
LTM
Revenue
151,157
157,403
152,669
159,514
164,683
169,176
Gross profit
50,832
52,778
50,960
53,308
54,865
56,177
Operating income
23,040
24,039
21,689
21,526
20,890
21,022
Net income
16,430
17,110
15,140
14,810
14,160
14,231
Diluted EPS ($)
15.53
16.69
15.11
14.91
14.23
14.30
Free cash flow
14,005
11,496
17,946
16,325
12,646
15,099
Gross margin
33.6%
33.5%
33.4%
33.4%
33.3%
33.2%
Operating margin
15.2%
15.3%
14.2%
13.5%
12.7%
12.4%
Net margin
10.9%
10.9%
9.9%
9.3%
8.6%
8.4%
Balance sheet
FY22
FY23
FY24
FY25
FY26
LTM
Total assets
71,876
76,445
76,530
96,119
105,095
109,384
Cash
2,343
2,757
3,760
1,659
1,389
2,085
Total debt
40,086
43,193
44,111
53,383
55,772
52,896
Equity
-1,696
1,562
1,044
6,640
12,813
16,617
Dividend per share ($)
6.60
7.60
8.36
9.00
9.20
9.26
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.