Home Depot Valuation
| 0R1G Stock | USD 178.57 2.25 1.28% |
At this time, the firm appears to be overvalued. Home Depot retains a regular Real Value of $153.4 per share. The prevalent price of the firm is $178.57. Our model calculates the value of Home Depot from evaluating the firm fundamentals such as Current Valuation of 488.52 B, return on equity of 0.21, and Return On Asset of 0.19 as well as inspecting its technical indicators and probability of bankruptcy.
Price Book 97.2926 | Enterprise Value 488.5 B | Enterprise Value Ebitda 15.9498 | Price Sales 4.6672 | Forward PE 11.7509 |
Overvalued
Today
Please note that Home Depot's price fluctuation is very steady at this time. Calculation of the real value of Home Depot is based on 3 months time horizon. Increasing Home Depot's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Home stock is determined by what a typical buyer is willing to pay for full or partial control of Home Depot. Since Home Depot is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Home Stock. However, Home Depot's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 178.57 | Real 153.4 | Hype 176.32 | Naive 176.32 |
The intrinsic value of Home Depot's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Home Depot's stock price.
Estimating the potential upside or downside of Home Depot helps investors to forecast how Home stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Home Depot more accurately as focusing exclusively on Home Depot's fundamentals will not take into account other important factors: Home Depot Total Value Analysis
Home Depot is presently expected to have takeover price of 488.52 B with market capitalization of 722.84 B, debt of , and cash on hands of . Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Home Depot fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
488.52 B | 722.84 B |
Home Depot Asset Utilization
One of the ways to look at asset utilization of Home is to check how much profit was generated for every dollar of assets it reports. Home Depot harnesses its resources almost 0.1892 (percent), generating 0.19 cents for each dollar of resources held by the firm. An expanding asset utilization attests that the company is being more effective with each dollar of resources it retains. Simply put, asset utilization of Home Depot shows how effective it operates for each dollar spent on its resources.Home Depot Ownership Allocation
Home Depot has a total of 1 Billion outstanding shares. The majority of Home Depot outstanding shares are owned by outside corporations. These institutional investors are usually referred to as non-private investors looking to purchase positions in Home Depot to benefit from reduced commissions. Consequently, third-party entities are subject to a different set of regulations than regular investors in Home Depot. Please pay attention to any change in the institutional holdings of Home Depot as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company holds, if the real value of the firm is less than the current market value, you may not be able to make money on it.About Home Depot Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Home Depot. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Home Depot based exclusively on its fundamental and basic technical indicators. By analyzing Home Depot's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Home Depot's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Home Depot. We calculate exposure to Home Depot's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Home Depot's related companies. When determining whether Home Depot is a strong investment it is important to analyze Home Depot's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Home Depot's future performance. For an informed investment choice regarding Home Stock, refer to the following important reports:Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Home Depot. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. For more information on how to buy Home Stock please use our How to buy in Home Stock guide.You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.