Home Depot Valuation
| HDI Stock | 400.75 12.75 3.29% |
At this time, the firm appears to be undervalued. Home Depot retains a regular Real Value of USD450.35 per share. The prevalent price of the firm is USD400.75. Our model calculates the value of Home Depot from evaluating the firm fundamentals such as Return On Asset of 0.2, current valuation of 367.25 B, and Return On Equity of 0.15 as well as inspecting its technical indicators and probability of bankruptcy.
Undervalued
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.
Home Depot's intrinsic value may or may not be the same as its current market price of 400.75, 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 400.75 | Real 450.35 | Hype 400.75 | Naive 405.52 |
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, news, and other external factors that may influence Home Depot's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of The 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
The Home Depot is currently forecasted to have takeover price of 367.25 B with market capitalization of 277.65 B, debt of 41.96 B, 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 |
367.25 B | 277.65 B | 41.96 B |
Home Depot Investor Information
About 73.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.73. Home Depot recorded earning per share (EPS) of 15.72. The entity last dividend was issued on the 8th of March 2023. Based on the key indicators related to Home Depot's liquidity, profitability, solvency, and operating efficiency, The Home Depot is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.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 205.9 percent. This implies that the Company is making USD2.06 for each dollar of assets. An increasing asset utilization means that The Home Depot is more efficient with each dollar of assets it utilizes for everyday operations.Home Depot Ownership Allocation
The Home Depot has a total of 1.02 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 The 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.Home Depot Profitability Analysis
The company reported the revenue of 157.4 B. Net Income was 17.11 B with profit before overhead, payroll, taxes, and interest of 52.78 B.About Home Depot Valuation
The stock valuation mechanism determines Home Depot's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Home Depot based exclusively on its fundamental and basic technical indicators. 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.8 Steps to conduct Home Depot's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Home Depot's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Home Depot's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Home Depot's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Home Depot's revenue streams: Identify Home Depot's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Home Depot's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Home Depot's growth potential: Evaluate Home Depot's management, business model, and growth potential.
- Determine Home Depot's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Home Depot's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Additional 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.