Home Depot, Inc. (HD) Valuation
Historical valuation analysis based on 1279 data points (2021-09-14 to 2026-10-16)
Home Depot is the world's largest home improvement specialty retailer, operating 2,364 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the US, C...
Home Depot, Inc. (HD) currently trades at a P/E ratio of 21.82 (historical range: 16.26–29.29, median: 23.10), placing it at the 40th percentile — near its historical average, P/S ratio of 1.88 (range: 1.66–3.00, 6th percentile — cheap relative to its history), EV/EBITDA of 18.31 (range: 13.21–22.56, 53th percentile).
Over the historical period (2021-09-14 to 2026-10-16), Home Depot, Inc.'s P/E ratio has expanded by 21% over the observed period (from an average of 20.4 to 24.7).
Home Depot, Inc. trades below its historical valuation range, with most metrics below their median levels.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 21.82 | 23.10 | 40th | near its historical average |
| P/S Ratio | 1.88 | 2.20 | 6th | cheap relative to its history |
| EV/EBITDA | 18.31 | 18.14 | 53th | near its historical average |
| FCF Yield | 4.09% | 4.09% | 50th | near its historical average |
Home Depot, Inc. (HD) Valuation & P/E History
Home Depot, Inc. (HD) is a US-listed stock operating in the Consumer Cyclical sector, specifically the Retail-Lumber & Other Building Materials Dealers industry currently trading at $309.18 with a market capitalization of $308.5 billion. This page provides historical valuation analysis for HD based on 1279 data points covering 2021-09-14 to 2026-10-16. The P/E ratio of 21.82 is below the historical median of 23.10, placing HD at the 40th percentile of its valuation range. The P/S ratio of 1.88 compares to a median of 2.20.
HD Valuation Metrics & Historical Range
The valuation table above shows Home Depot, Inc.'s current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether HD is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests HD is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Home Depot, Inc..
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is HD Overvalued or Undervalued?
Home Depot, Inc. trades below its historical valuation range, with most metrics below their median levels. The overall valuation percentile of 33 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive HD is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full HD analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.HD trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.