Home Depot (HD)
Forward P/E 20.72x (SECONDARY, stockanalysis.com) vs peer median 21.63x and trailing P/E 22.29x vs a ~23.3x 5-year average trailing P/E — in line with the industry and slightly below its own history. Not undervalued: PEG 2.38, a ~31% forward premium to closest comp LOW (15.87x), and the set's highest P/S (1.88x) on +5.7% latest-quarter growth in flat, rate-sensitive housing demand.
What would change this label: Re-rate OVERVALUED if forward P/E expands above ~24x while revenue growth falls to <=2% for two consecutive quarters; re-rate UNDERVALUED if it de-rates below ~17x forward with growth holding at >=4%.
Home Depot trades at about 21 times next year's expected earnings, roughly the same as its rival group and a little cheaper than it has usually traded over the past five years. That looks fair, not cheap: sales are growing only about 6%, housing demand is soft while interest rates stay high, and the stock still costs more than Lowe's, its closest rival. The big fall in the share price has already taken the housing slump into account.
Both lines start at 100 on 2020-09-01. Over the full window Home Depot returned +11.39% and the S&P 500 +118.28% (price returns; dividends not reinvested). Worst peak-to-trough fall for Home Depot: -36.0% (2021-12-07 to 2022-09-26). Source: Nasdaq official daily history.
What the label rests on
Forward P/E 20.72x (SECONDARY, stockanalysis.com) vs peer median 21.63x and trailing P/E 22.29x vs a ~23.3x 5-year average trailing P/E — in line with the industry and slightly below its own history. Not undervalued: PEG 2.38, a ~31% forward premium to closest comp LOW (15.87x), and the set's highest P/S (1.88x) on +5.7% latest-quarter growth in flat, rate-sensitive housing demand. The company’s forward P/E is 20.7× against a peer median of 21.6×. Its own history: Trailing P/E 22.29x vs 5-year average trailing P/E ~23.27x (FinanceCharts, SECONDARY); annual period-end P/E ranged 18.77x-27.32x over FY2022-FY2026 (Wisesheets, SECONDARY) — current multiple slightly below own 5-year average.. Sector demand read: Housing/renovation demand flat-to-soft and rate-sensitive; latest quarter still grew +5.7% YoY with $15.1B TTM FCF — stabilisation required, no acceleration evidenced or priced in. Latest-quarter sales growth was +5.7% versus a year earlier (SEC filings).
| Company | Price (Oct 27, 2026) | Forward P/E | Trailing P/E |
|---|---|---|---|
| Home Depot (HD) | $318.50 | 20.7× | 22.3× |
| LOW | $198.18 | 15.9× | 16.8× |
| COST | $992.13 | 43.5× | 47.8× |
| WMT | $119.32 | 39.7× | 43.2× |
| TGT | $148.01 | 15.9× | 15.3× |
| BJ | $105.12 | 21.6× | 23.0× |
| Peer median | 21.6× |
Multiples: stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026. Peer set chosen by sector; the median is the middle value of the set. The label and its numbers were recorded in the programme’s label registry on Oct 28, 2026 and will be scored at 6 and 12 months.
Sales, profit and cash
Gross margin = gross profit divided by sales, from SEC filings.
Free cash flow = cash from operations minus spending on plant and equipment, both from the company’s SEC cash-flow statement. Gaps are quarters where that spending line is not separately tagged in the filings — shown as gaps, never estimated.
| Quarter | Sales | Gross margin | Net income | EPS (GAAP, diluted) | Free cash flow |
|---|---|---|---|---|---|
| Q/E Aug 2026 2026-08-02 | $47.9B | 33.7% | $4.8B | 4.79 | $4.5B |
| Q/E May 2026 2026-05-03 | $41.8B | 33.0% | $3.3B | 3.30 | $5.2B |
| Q/E Feb 2026 2026-02-01 | $38.2B | 32.6% | $2.6B | — | $2.3B |
| Q/E Nov 2025 2025-11-02 | $41.4B | 33.4% | $3.6B | 3.62 | $3.1B |
| Q/E Aug 2025 2025-08-03 | $45.3B | 33.4% | $4.6B | 4.58 | $3.7B |
| Q/E May 2025 2025-05-04 | $39.9B | 33.8% | $3.4B | 3.45 | $3.5B |
| Q/E Feb 2025 2025-02-02 | $39.7B | 32.8% | $3.0B | — | $3.6B |
| Q/E Oct 2024 2024-10-27 | $40.2B | 33.4% | $3.6B | 3.67 | $3.4B |
| Q/E Jul 2024 2024-07-28 | $43.2B | 33.4% | $4.6B | 4.60 | $4.7B |
| Q/E Apr 2024 2024-04-28 | $36.4B | 34.1% | $3.6B | 3.63 | $4.7B |
| Q/E Jan 2024 2024-01-28 | $34.8B | 33.1% | $2.8B | — | $3.9B |
| Q/E Oct 2023 2023-10-29 | $37.7B | 33.8% | $3.8B | 3.81 | $3.6B |
The last twelve reported quarters. Full 24-quarter history sits in the data pack behind this page. A dash means the figure is not tagged as a standalone quarter in the company’s SEC facts (the usual case is the fourth quarter, which many companies only report inside the full-year filing) — it is missing, not zero.
Earnings: getting better or worse?
Each box is one quarter’s earnings per share (EPS). Green means EPS was higher than the same quarter a year earlier; red means lower; a dash means the figure is not tagged in the filings.
Basis: GAAP diluted EPS from SEC company facts, compared with the same quarter a year earlier.
Key facts
| Item | Value |
|---|---|
| Company (legal name in filings) | HOME DEPOT, INC. |
| Chief executive | Ted Decker (source: Home Depot Form 8-K Aug 12, 2026 (temporary medical leave; Decker remains Chair, President and CEO, with Campbell/McPhail in interim oversight) as reported by Retail TouchPoints/TipRanks; Business Roundtable 2026 leadership listing names Ted Decker as Chair, President & CEO — fetched Oct 28, 2026) |
| Sector | Consumer Discretionary — Home improvement retail (housing-linked consumer discretionary) |
| Share price (Oct 27, 2026) | $318.50 |
| Market value (market cap) | $317.8B — share price times shares outstanding of 997,689,626 (SEC filings; SEC EDGAR dei EntityCommonStockSharesOutstanding (latest)) |
| Sales, last twelve months | $169.2B |
| Net income, last twelve months | $14.2B |
| Free cash flow, last twelve months | $15.1B |
| Latest reported quarter | Q/E Aug 2026 (of 24 quarters in the data pack) |
| Six-year price return vs S&P 500 | +11.39% vs +118.28% |
| Worst peak-to-trough fall | -36.0% (2021-12-07 to 2022-09-26) |
What we could not verify
- TTM GAAP diluted EPS could not be summed from company facts because at least one of the last four quarters (typically Q4) has no standalone tagged EPS; trailing P/E is therefore taken from the labelled secondary source in valuation_label.md.
- TTM GAAP diluted EPS from EDGAR — standalone Q4 EPS is not tagged, so trailing P/E (22.29x) is the stockanalysis.com SECONDARY figure, not a primary computation
- Own-history forward P/E range on a single consistent basis — stockanalysis.com ratios page publishes no P/E history series; own-history context uses trailing-P/E averages from FinanceCharts/Wisesheets (SECONDARY)
- Sourced dated read on current US housing turnover/renovation demand beyond the company's own quarter — no primary housing-demand series fetched Oct 28, 2026
- Guidance record (each quarter scored against the guidance the company gave the quarter before) is not yet compiled for this company — it is a Phase 2 layer. The earnings strip below therefore uses reported EPS versus a year earlier, which is fully sourced from filings.
The IT factor — the most exciting thing the market is overlooking — is not assessed on an X-Ray page. It belongs to the Deep Dive (Phase 2), where it gets the evidence standard it needs. Leadership-era scoring (the six years split by chief executive) is likewise a Phase 2 layer; this page names the current chief executive only, from a sourced profile.
Sources
- SEC EDGAR submissions — Filing index; company legal name.
https://data.sec.gov/submissions/CIK0000354950.json - SEC EDGAR company facts — Quarterly financial spine: revenue, gross profit, net income, GAAP diluted EPS, operating cash flow, PP&E capex, buybacks, dividends, diluted shares.
https://data.sec.gov/api/xbrl/companyfacts/CIK0000354950.json - Nasdaq official daily history — Daily closes for the company; SPY (assetclass=etf) saved as raw/nasdaq_spy_raw.json over identical dates.
https://api.nasdaq.com/api/quote/HD/historical?assetclass=stocks - Valuation multiples and peer figures — stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026; see valuation_label.md in the data pack.
Conventions: earliest-filed value per period, as first reported; cash-flow years-to-date differenced quarter by quarter; EPS never differenced; free cash flow = operating cash flow minus plant-and-equipment spending. This page is a dated snapshot — updates are new versions, never silent edits.