Home Depot Valuation
| HD Stock | USD 406.30 6.30 1.58% |
At this time, the firm appears to be overvalued. Home Depot retains a regular Real Value of $316.77 per share. The prevalent price of the firm is $406.3. Our model calculates the value of Home Depot from evaluating the firm fundamentals such as Current Valuation of 459.19 B, return on asset of 0.15, and Return On Equity of 0.4 as well as inspecting its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Home Depot's valuation include:
Price Book 68.6735 | Enterprise Value 459.2 B | Enterprise Value Ebitda 18.3794 | Price Sales 2.5702 | Forward PE 25.3165 |
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 406.3 | Real 316.77 | Target 321.54 | Hype 399.75 | Naive 405.48 |
The real value of Home Stock, also known as its intrinsic value, is the underlying worth of Home Depot Company, which is reflected in its stock price. It is based on Home Depot's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Home Depot's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
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: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Home Depot's intrinsic value based on its ongoing forecasts of Home Depot's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Home Depot's closest peers. If more than one evaluation category is relevant for Home Depot we suggest using both methods to arrive at a better estimate.
Home Depot Cash |
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Home Valuation Trend
Comparing Home Depot's enterprise value against its market capitalization is a good way to estimate the value of Home Depot uage its performance over time. This information may sometimes be enough for investors to make reasonable market timing decisions.
Home Revenue by Product
Home Depot Total Value Analysis
Home Depot is currently forecasted to have takeover value of 459.19 B with market capitalization of 397.35 B, debt of 52.24 B, and cash on hands of 2.76 B. Please note that takeover value may be misleading and is a subject to accounting mistakes. We encourage investors to methodically examine all of the Home Depot fundamentals before making investment evaluation based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
459.19 B | 397.35 B | 52.24 B | 2.76 B |
Home Depot Investor Information
About 72.0% of the company shares are owned by institutional investors. The company recorded earning per share (EPS) of 14.72. Home Depot last dividend was issued on the 27th of November 2024. The entity had 3:2 split on the 31st of December 1999. Based on the key indicators related to Home Depot's liquidity, profitability, solvency, and operating efficiency, Home Depot may be sliding down financialy. It has an above-average risk of going through some form of financial straits next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Operating Profit Margin | 0.14 | 0.1421 |
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| Total Cash From Operating Activities | 22.2 B | 21.2 B |
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| Operating Income | 22.8 B | 21.7 B |
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Home Depot Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Home Depot has an asset utilization ratio of 199.49 percent. This indicates that the Company is making $1.99 for each dollar of assets. An increasing asset utilization means that Home Depot is more efficient with each dollar of assets it utilizes for everyday operations.Home Depot Ownership Allocation
Home Depot has a total of 993.36 Million 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. On November 7, 2024, Representative Josh Gottheimer of US Congress acquired under $15k worth of Home Depot's common stock.Home Depot Profitability Analysis
The company generated the yearly revenue of 152.67 B. Reported Net Income was 15.14 B with gross profit of 52.78 B.Home Depot Past Distributions to stockholders
| 12th of September 2024 | ||
| 13th of June 2024 | ||
| 21st of March 2024 | ||
| 14th of December 2023 | ||
| 14th of September 2023 | ||
| 15th of June 2023 | ||
| 23rd of March 2023 | ||
| 15th of December 2022 |
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Home Depot's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Home Depot and how it compares across the competition.
About Home Depot Valuation
The stock valuation mechanism determines Home Depot's current worth on a weekly basis. Our 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.| Last Reported | Projected for Next Year | ||
| Gross Profit | 51 B | 53.5 B | |
| Pretax Profit Margin | 0.13 | 0.13 | |
| Operating Profit Margin | 0.14 | 0.14 | |
| Net Profit Margin | 0.10 | 0.10 | |
| Gross Profit Margin | 0.33 | 0.34 |
Home Depot Quarterly Retained Earnings |
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A single share of Home Depot represents a small ownership stake in the entity. As a stockholder of Home, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Home Depot Dividends Analysis For Valuation
The current year's Dividend Paid And Capex Coverage Ratio is expected to grow to 2.11, whereas Dividends Paid is projected to grow to (8 B). . At present, Home Depot's Retained Earnings Total Equity is projected to increase significantly based on the last few years of reporting. The current year's Earnings Yield is expected to grow to 0.04, whereas Price Earnings Ratio is forecasted to decline to 22.54.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -8.4 B | -8 B | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 0.55 | 0.50 | |
| Dividend Paid And Capex Coverage Ratio | 1.82 | 2.11 |
There are various types of dividends Home Depot can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Home shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Home Depot directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Home pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Home Depot by the value of the dividends paid out.
Home Depot Growth Indicators
Investing in growth stocks can be very risky. If the company such as Home Depot does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 1 B | |
| Quarterly Earnings Growth Y O Y | -0.037 | |
| Forward Price Earnings | 25.3165 |
Home Depot Current Valuation Indicators
Valuation refers to the process of determining the present value of Home Depot and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Home we look at many different elements of the entity such as Home's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Home Depot, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Home Depot's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Home Depot's worth.Complementary Tools for Home Stock analysis
When running Home Depot's price analysis, check to measure Home Depot's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Home Depot is operating at the current time. Most of Home Depot's value examination focuses on studying past and present price action to predict the probability of Home Depot's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Home Depot's price. Additionally, you may evaluate how the addition of Home Depot to your portfolios can decrease your overall portfolio volatility.
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