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STOCK COMPARISON

Home Depot vs Wesfarmers: Fair Value & Quality

Both stocks run through our valuation models. Here is how Home Depot (HD) and Wesfarmers (WES) compare, as of Sep 6, 2026.

As of Sep 6, 2026, Fair Value Calculator sees Home Depot as the less overvalued of the two: Home Depot trades at $321 versus a fair value of $237 (-26%), while Wesfarmers trades at A$77.73 versus A$50.50 (-35%).
Home Depot
HD · USD · Consumer Discretionary
-26%
upside to fair value
overvalued
Price$321
Fair Value$237
Quality57/100
Wesfarmers
WES.AU · AUD · Consumer Discretionary
-35%
upside to fair value
overvalued
PriceA$77.73
Fair ValueA$50.50
Quality71/100
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Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

Home DepotWesfarmers
Valuation
24.4×P/E (TTM)34.4×
2.06×P/S (TTM)1.64×
26.72×P/B8.26×
15.5×EV/EBITDA17.2×
1.94×PEG1.51×
−26.2%Fair value upside−35.0%
2.2%Dividend yield4.7%
$6.93Dividend per shareA$3.63
Profitability
12%Operating margin10%
0.92×EBIT margin trend (5Y)0.95×
128%Return on equity36%
13%Return on assets9%
Growth
5%Revenue growth (YoY)3%
1.5%Avg. growth/yr (3Y)7.5%
4.5%Avg. growth/yr (5Y)8.2%
+5.7%Value creation/yr+13.2%
Balance & size
8.7×Interest coverage (EBIT/interest)9.3×
3.62×Debt / equity0.51×
$342BMarket cap$76B
healthyGrowth qualitymixed

Wesfarmers leads: 6 to 10 metric wins.

Dash = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Home Depotof which business quality 55 · market factors 41 Wesfarmersof which business quality 67 · market factors 50
ProfitabilityMargins and returns on capital today
83
80
Quality GrowthAre margins and returns improving?
30
50
CashflowEarnings quality: real cash, not paper profit
50
56
Fin. StrengthBalance sheet, leverage, solvency risk
34
56
InvestmentDisciplined investing over empire-building
48
91
Low VolatilityCalm price path (market factor)
71
81
MomentumPrice trend over the last 3–12 months (market factor)
33
42
52W MomentumDistance to the 52-week high (market factor)
18
27
Net IssuanceBuybacks instead of dilution
84
81

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model familyHome DepotPrice $321WesfarmersPrice A$77.73
DCF Models-23%below the price$247-26%below the priceA$57.31
Earnings-Based-60%below the price$129-70%below the priceA$22.94
Dividend Discount-46%below the price$174n/a
Multiples-29%below the price$227-36%below the priceA$50.00
Asset-Based-97%below the price$8.61-93%below the priceA$5.42
Growth DCF-40%below the price$193-33%below the priceA$52.38
Economic Profit-60%below the price$128-65%below the priceA$27.30
Growth Earnings-11%close to the price$285-44%below the priceA$43.23
Minimum-97%below the price$8.61-93%below the priceA$5.42
Maximum-11%close to the price$285-26%below the priceA$57.31
Median-43%below the price$184-44%below the priceA$43.23
Geometric mean-60%below the price$129-61%below the priceA$30.03

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Home Depot: 24 of 26 models see the stock below the current price.

Wesfarmers: 24 of 24 models see the stock below the current price.

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

Home Depot
Bear $129Fair Value $237Bull $312
$321 = current price (white tick)
Wesfarmers
Bear A$34.21Fair Value A$50.50Bull A$65.44
A$77.73 = current price (white tick)

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Home Depot · Consumer Discretionary

Quality score57 · above median
Fair value upside-26% · below median

Wesfarmers · Consumer Discretionary

Quality score71 · Top 25%
Fair value upside-35% · below median

Bottom line

As of Sep 6, 2026, Fair Value Calculator sees Home Depot as the less overvalued of the two: Home Depot trades at $321 versus a fair value of $237 (-26%), while Wesfarmers trades at A$77.73 versus A$50.50 (-35%).

Wesfarmers has the higher quality score (71/100).

See the full analysis →
Home Depot · Wesfarmers

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.