The Home Depot Inc (HD) fair value: what the stock is really worth
As of Nov 4, 2026: fair value (intrinsic value) of The Home Depot Inc stock $237, price $355, that is 33.4% below the price, quality 57 out of 100. Rating: overvalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
Keep an eye on it?Free in your watchlist: 5 stocks without an account, 10 with oneYes, for free
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 5, 2026.
How to read this chart
60‑month range $240.30 – $411.93 · fair‑value band $140.44 – $311.92 · the $355.44 price screens above the $236.72 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 5, 2026.
Follow The Home Depot in your weekly email
Every Wednesday you see whether The Home Depot is on track or worth a review, plus price against fair value. Free, up to 3 stocks.
We send you a confirmation link. Unsubscribe with one click.
The Home Depot, Inc. operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products.
Show moreShow less
The company also offers installation services for flooring, water heaters, baths, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, windows, and window coverings. In addition, it provides tool and equipment rental services.
The company serves consumers, such as do-it-yourself homeowners and do-it-for-me customers; and professional renovators/remodelers, general contractors, homebuilders, maintenance professionals, handymen, property managers, building service contractors and specialty tradespeople, such as electricians, landscapers, insulation installers, plumbers, painters, pool contractors, roofers, and wallboard and ceiling installers.
It sells its products through websites and its mobile applications, including homedepot.com; homedepot.ca and homedepot.com.mx; blinds.com, justblinds.com, and americanblinds.com for custom window coverings; constructionresourcesusa.com or design-oriented surfaces, appliances, and architectural specialty products; thecompanystore.com, an online site for textiles and décor products; hdsupply.com for maintenance, repair, and operations products and related services; and srsdistribution.com, heritagelandscapesupplygroup.com, heritagepoolsupplygroup.com, and gms.com for roofing and building materials, landscape, and pool products; and The Home Depot stores.
The Home Depot, Inc. was incorporated in 1978 and is headquartered in Atlanta, Georgia.
Stock analysis
The Home Depot Inc (HD) currently trades at $355.44, while our model-based Fair Value estimate is $236.72, 33% below the price, so the stock looks overvalued today.
Show more
Valuation
Bull case: the Growth Earnings group reads highest at a median of $285.28 per share, and 0 of the 24 models we run sit above the $355.44 price.
Bear case: the Economic Profit group reads lowest at $54.70, and 24 of the 24 models stay below the price. Data coverage for this calculation is high.
Scenario range: $140.44 (bear) to $311.92 (bull), the price of $355.44 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 57/100 (solid quality), in the Consumer Cyclical sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
The Home Depot Inc reported revenue of $165B in FY2026 versus $151B in FY2022, a compound +2.2%/yr. Reported net income was $14.2B in FY2026, compounding −3.7%/yr from FY2022.
Key figures
Market cap $354B Mega · P/E ratio 24.7 · P/S ratio 2.10 · EPS (TTM) $14.37 · Dividend yield 1.3% · Net margin 8.4% · Return on equity 104% · Return on assets (EBIT) 26.8%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 72 out of 100 (medium confidence).
What moves the price
The share trades about 7% below its 52-week high and 26% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −19% fair-value upside, at −33%, HD screens richer than that median.
Fair Value models
Bear$140.44Fair Value $236.72Bull$311.92
Price $355.44 · Downside -33.4%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 9 months old). Earnings retained since then ($7.45 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 4 officers or directors sold shares worth $3.3M and none bought.
SaleKimberly R ScardinoSVP-Finance, CAO & Controller675 shares at $305.95$206,516Sep 10, 2026
SaleTeresa Wynn RoseboroughEVP, Gen. Counsel & Corp. Sec.2× since Dec 26, 2025: 5,327 shares, avg. $339.42$1.8MAug 28, 2026
SaleMichael F. RoweEVP, Pro710 shares at $336.76$239,100Aug 26, 2026
SaleRichard McPhail VEVP & CFO2× since Mar 4, 2026: 8,539 shares, avg. $354.52$3.0MAug 19, 2026
SaleJohn A. DeatonEVP - Supply Chain & Prod. Dev1,793 shares at $369.00$661,617Mar 4, 2026
SaleAngie BrownEVP & CIO1,946 shares at $357.63$695,948Dec 12, 2025
SaleAnn Marie CampbellSenior EVP145 shares at $358.26$51,948Dec 11, 2025
Plus 11 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.68/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+3.2%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+1.5%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.5%
Start year 2021 (pandemic). Over 10 years: +6.4% a year
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+14.6%
’15
’16
’17
’18
’19
’20
’21
’22
’23
’24
’25
’26
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+4.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year+3.5%
Dividend (yield on the price)1.3%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.3.5% vs 10.0%, slowing
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.14% → 13%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+15.6%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+3.3%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +12.9% a year for the price and +0.9% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (96 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: Scale and operations bolster the competitive moat while limited innovation and insider signals remain the main constraint on business quality.
Main risk: Cyclical housing exposure could reduce demand across both core retail stores and the newer professional contractor channels.
Home Depot is building a large distribution network alongside its stores to serve professional contractors more directly through recent acquisitions. This move opens access to a much bigger segment of the home improvement market but brings thinner margins and added capital needs compared with its core retail operations. Our models currently see the stock as overvalued. Does the expanded reach ultimately improve returns more than the shift in business mix weighs on them?
Price, fair value, quality and upside side by side.
Free, no sign-up
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Home Improvement Retail · 31 stocks
Beats the industry median on 5/14 measures
Overall it trails its industry peers.
Valuation
Quality Score57 · Below median
Fair Value upside−33.4% · Below median
Profitability
Return on equity (12 months)104.3% · Top 25%
Return on assets13.5% · Top 25%
Net margin (12 months)8.4% · Top 25%
Operating margin (12 months)12.9% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)5.7% · Above median
Dividend yield (12 months)1.3% · Bottom 25%
Balance sheet
Debt / equity3.62× · Highest 25%
Valuation Multiplesvs Home Improvement Retail median · lower = cheaper
P/E (12 months)24.7× · Priciest 25%
P/B27.66× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
P/S (12 months)2.10× · Priciest 25%
Price / free cash flow28.0× · Priciest 25%
EV/EBITDA16.2× · Priciest 25%
PEG2.50× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 13
FUTURE (revenue growth)29· sector 15
PAST (return on equity)100· sector 34
HEALTH (low debt)0· sector 95
DIVIDEND (yield)26· sector 51
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "The Home Depot Inc Fair Value". https://www.fairvalue-calculator.com/stock/HD
Frequently asked questions
Is The Home Depot Inc (HD) overvalued or undervalued?
As of Nov 5, 2026, our model estimates a fair value of $236.72 versus a price of $355.44, about 33% lower (overvalued).
What is the fair value of HD?
Our model-based fair value for The Home Depot Inc is $236.72 (as of Nov 5, 2026), built from audited fundamentals. The current price: $355.44.
What is the quality score of HD?
The Home Depot Inc has a Quality Score of 57/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for The Home Depot Inc (HD)?
Our model-based price target is the fair value of $236.72 (as of Nov 5, 2026) from 24 valuation models. Cautious scenario $140.44, optimistic scenario $311.92. It is a calculation from audited fundamentals, not an analyst target.
What is the The Home Depot Inc stock forecast for 2026?
Our models put fair value at $236.72, about 33% lower versus a price of $355.44 (overvalued). Cautious scenario $140.44, optimistic scenario $311.92. The calculation is refreshed regularly with new filings.
What is the revenue of The Home Depot Inc (HD)?
The Home Depot Inc reported trailing-twelve-month revenue of about $169B (latest available figure, as of Nov 5, 2026).
Does The Home Depot Inc pay a dividend?
The Home Depot Inc currently shows a dividend yield of 1.30% relative to its recent price (as of Nov 5, 2026).
What growth is priced into The Home Depot Inc (HD)?
For today's price to be fair in a discounted-cash-flow model, The Home Depot Inc would have to grow free cash flow by +15.6 % per year for five years (discount rate 8.7 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +4.5 % per year. As of Nov 5, 2026.
What discount rate (WACC) does the fair value of HD use?
Our models discount The Home Depot Inc at 8.7 %: a base by market capitalisation (mega), damped by beta 1.00, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For The Home Depot Inc that is +15.6 % per year a year over ten years, using the same discount rate (8.7 %) and the same formula as our fair value.
How much growth has The Home Depot Inc (HD) delivered so far?
Over the past 5 years revenue at The Home Depot Inc grew +4.5 % a year. The price currently implies +15.6 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of The Home Depot Inc (HD) growing?
The median revenue growth in the sector is +4.6 % a year. That is the yardstick for the growth priced into The Home Depot Inc (+15.6 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of The Home Depot Inc (HD)?
The free-cash-flow yield on the price is 3.57 %: that much free cash flow The Home Depot Inc produces per unit of market value. When it exceeds the discount rate of our models (8.7 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of The Home Depot Inc (HD)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For The Home Depot Inc it is $236.72 per share (as of Nov 5, 2026), against a price of $355.44. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is The Home Depot Inc stock overvalued or undervalued in 2026?
As of Nov 5, 2026, HD trades above its calculated fair value: price $355.44, fair value $236.72, a gap of about −33% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of HD?
No. The price is what the market pays today ($355.44); the fair value is what the company's own numbers justify ($236.72). For The Home Depot Inc the two are $118.72 per share apart. That gap is exactly why we show both numbers side by side.
How much is The Home Depot Inc worth?
The market values The Home Depot Inc at about $354B (market capitalisation, as of Nov 5, 2026). Per share that is $355.44; our models calculate a fair value of $236.72 per share.
What do the bullish and bearish scenarios say about HD?
Our models span a range for The Home Depot Inc: cautious scenario $140.44, base $236.72, optimistic $311.92 per share (as of Nov 5, 2026, price $355.44). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of HD?
The Home Depot Inc trades at a price-to-earnings ratio of 24.7 (as of Nov 5, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $236.72 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings, FY2019 ex one-offs: 23.0. Other multiples: PEG 2.5, P/B 27.7, P/S 2.1, EV/EBITDA 16.2.
What is the PEG ratio of HD?
The PEG ratio of The Home Depot Inc is 2.50 (P/E divided by earnings growth, as of Nov 5, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of The Home Depot Inc (HD)?
Balance-sheet figures for The Home Depot Inc (as of Nov 5, 2026): return on equity 104.3%, debt of 3.62 per unit of equity. They feed the Quality Score of 57/100, which measures business quality independently of the share price.
How far is HD from its 52-week high?
The Home Depot Inc trades at $355.44, about 7% below its 52-week high of $382.74 and 26% above the low of $281.15 (as of Nov 4, 2026). Distance from the high says nothing about value: that is what the fair value of $236.72 is for.
Which stocks are comparable to The Home Depot Inc?
From the same area (Consumer Cyclical) we also value Lowe's Companies, Inc, Wesfarmers Limited, Floor & Decor Holdings, Mr D.I.Y. Group, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is The Home Depot Inc stock attractive at the current price?
The data as of Nov 5, 2026: price $355.44, calculated fair value $236.72 (−33%), Quality Score 57/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of HD calculated?
We run The Home Depot Inc through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $236.72, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.0% above its aggregate fair value. The Home Depot Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of The Home Depot Inc (HD)?
The closing price on Nov 4, 2026 was $355.44. Our model-based fair value is $236.72, about 33% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with The Home Depot Inc right now?
The price sits above even our optimistic bull case ($311.92). The favourable scenario is already priced in. Solid but not exceptional quality (57/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($140.44 to $311.92) leaves room in how you read the outcome.
Where does the earnings growth of The Home Depot Inc (HD) come from?
Earnings per share at The Home Depot Inc grew +11.5 % a year from 2015 to 2026. Broken into its drivers: revenue per share +9.8 %, EBIT margin +0.0 %, tax rate +2.0 %, residual (interest, one-offs) −0.4 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of The Home Depot Inc
How large is the market capitalisation of The Home Depot Inc (HD)?
The market capitalisation of The Home Depot Inc is $354B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of The Home Depot Inc (HD)?
The price-to-sales ratio of The Home Depot Inc is 2.10 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of The Home Depot Inc (HD)?
Earnings per share at The Home Depot Inc are $14.37 (price ÷ EPS = P/E 24.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of The Home Depot Inc (HD)?
The dividend yield of The Home Depot Inc is 1.3% (payout 32.2%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of The Home Depot Inc (HD)?
The net margin of The Home Depot Inc is 8.4% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of The Home Depot Inc (HD)?
The return on equity (ROE) of The Home Depot Inc is 104% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of The Home Depot Inc (HD)?
On an EBIT basis the return on assets of The Home Depot Inc is 26.8% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of The Home Depot Inc (HD)?
The operating margin of The Home Depot Inc is 12.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at The Home Depot Inc (HD)?
Revenue at The Home Depot Inc is growing +5.7% versus a year earlier (3y avg +1.5%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at The Home Depot Inc (HD)?
Earnings per share at The Home Depot Inc are growing +4.6% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does The Home Depot Inc (HD) carry?
The net debt of The Home Depot Inc is $64.0B (fiscal year 2026, ≈ 5.1 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
Free · no account needed
Watch The Home Depot Inc in the live analysis
One click puts The Home Depot Inc on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 27,000+ stock screener.
Broad data
Nov 5, 2026