The Home Depot Inc (HD) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
The Home Depot Inc stock (HD) is currently trading at $332.51. The Home Depot Inc PE ratio is 22.52. The Home Depot Inc PS ratio (Price-to-Sales) is 1.94. Analyst consensus price target for HD is $409.84. WallStSmart rates HD as Underperform.
The Home Depot Inc (HD) stock price prediction for 2030: Base case $263.12. Bull case $328.90. Bear case $197.34. See full HD 2030 price forecast and methodology on WallStSmart.
- HD PE ratio analysis and historical PE chart
- HD PS ratio (Price-to-Sales) history and trend
- HD intrinsic value — DCF, Graham Number, EPV models
- HD stock price prediction 2025 2026 2027 2028 2029 2030
- HD fair value vs current price
- HD insider transactions and insider buying
- Is HD undervalued or overvalued?
- The Home Depot Inc financial analysis — revenue, earnings, cash flow
- HD Piotroski F-Score and Altman Z-Score
- HD analyst price target and Smart Rating
The Home Depot Inc
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HD Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · The Home Depot Inc (HD)
HD trades 242% above its Graham fair value of $96.83, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
The Home Depot Inc (HD) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, return on equity, price/sales. Concerns around price/book and revenue growth. Mixed signals suggest waiting for clearer direction before acting.
The Home Depot Inc (HD) Key Strengths (4)
Mega-cap company, among the largest in the world
Every $100 of shareholder equity generates $146 in profit
74.53% of shares held by major funds and institutions
Paying $1.94 for every $1 of annual revenue
Supporting Valuation Data
The Home Depot Inc (HD) Areas to Watch (6)
Revenue declining -3.80%, a shrinking business
Earnings declining -14.20%, profits shrinking
Very expensive at 24.9x book value
Paying a premium for growth, expensive relative to earnings expansion
Thin operating margins with cost pressures present
Thin profit margins with limited profitability
The Home Depot Inc (HD) Detailed Analysis Report
Overall Assessment
This company scores 50/100 in our Smart Analysis, earning a D+ grade. Out of 10 metrics analyzed, 4 register as strengths (avg 9.5/10) while 6 fall into concern territory (avg 2.3/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Market Cap, Return on Equity, Institutional Own.. Valuation metrics including Price/Sales (1.94) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 145.50%.
The Bear Case
The primary concerns are Revenue Growth, EPS Growth, Price/Book. Some valuation metrics including PEG Ratio (2.94), Price/Book (24.92) suggest expensive pricing. Growth concerns include Revenue Growth at -3.80%, EPS Growth at -14.20%, which may limit upside. Profitability pressure is visible in Operating Margin at 10.10%, Profit Margin at 8.60%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Revenue Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 145.50% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at -3.80% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Market Cap, Return on Equity) and negatives (Revenue Growth, EPS Growth). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
HD Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
HD's Price-to-Sales ratio of 1.94x trades at a 47% premium to its historical average of 1.32x (85th percentile). The current valuation is 21% below its historical high of 2.45x set in Jan 2018, and 296% above its historical low of 0.49x in Jan 2009. Over the past 12 months, the PS ratio has compressed from ~2.3x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for The Home Depot Inc (HD) · CONSUMER CYCLICAL › HOME IMPROVEMENT RETAIL
The Big Picture
The Home Depot Inc operates as a stable business with moderate growth and solid fundamentals. Revenue reached 164.7B with 380% decline year-over-year. Profit margins are thin at 8.6%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
ROE of 14550.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 2.3B in free cash flow and 3.3B in operating cash flow. Earnings are translating into actual cash generation.
Revenue contracted 380% YoY. Worth determining whether this is cyclical or structural.
What to Watch Next
Margin expansion: can The Home Depot Inc push profit margins above 15% as the business scales?
Dividend sustainability with a current yield of 281.0%. Watch payout ratio and free cash flow coverage.
Sector dynamics: monitor HOME IMPROVEMENT RETAIL industry trends, competitive moves, and regulatory changes that could impact The Home Depot Inc.
Bottom Line
The Home Depot Inc offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About The Home Depot Inc(HD)
NYSE
CONSUMER CYCLICAL
HOME IMPROVEMENT RETAIL
USA
The Home Depot, Inc., commonly known as Home Depot, is the largest home improvement retailer in the United States, supplying tools, construction products, and services. The company is headquartered in incorporated Cobb County, Georgia, with an Atlanta mailing address.