HDThe Home Depot

$319.66-16% 1Y

Is the price fair?

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A demanding price: at the top of its own P/E range and rich vs its sector.

2 to watch, 1 neutral
What the price assumes~+6% a year

Priced for ~6% a year FCF growth. Roughly in line with its three-year revenue growth of 3% a year.

Vs its own P/E rangedearer than 76% of its own historyderived

Expensive vs its own history: P/E 22.4 vs a 19.8 median over 41 quarters (+13% vs median).

Vs sector (EV/EBIT)17.6×

Sector median 15.0× across 156 covered peers. EV/EBIT counts debt as part of the price, so a cash-rich and a borrowed company can be compared on the same footing.

Unless marked, from derived, as of Aug 2, 2026.

Against the whole market›

Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.

P/E (valuation)middle of the market
FCF yieldmiddle of the market

Where this answer is blind. The growth-implied estimate assumes a fixed discount rate; capital-heavy sectors look structurally rich on it.

What HD's price assumes

The Home Depot trades at 22.4× earnings against 18.0× for the median Consumer Cyclical name, more expensive than its own group.

22.4

Trailing P/E · Consumer Cyclical median 18.0 · 1.24× the median: the market pays up for this one

Price / sales
1.89

Price / sales · today's price, trailing year to Aug 2, 2026

Free cash flow yield
4.7%

Free cash flow yield · Consumer Cyclical median 6.4%

Growth the price implies
+6.4%

Growth the price implies · The price pays for +6.4% free cash flow growth a year for a decade; the business has delivered −2.5% a year over the last three.

Details›
Price / booktoday's price, trailing year to Aug 2, 2026
19.2
EV / EBITtoday's price, trailing year to Aug 2, 2026
17.6
EV / salestoday's price, trailing year to Aug 2, 2026
2.19
Consumer Cyclical median P/E317 names
18.0
Free cash flow, trailing twelve months
$15.1B
Market capitalisation997.7 million shares, counted Aug 18, 2026
$318.9B
3-year revenue growth
+3.0%
3-year free cash flow growth
−2.5%
What the market has paid for these earnings: 41 quarters of its own multiple × $14.29 of trailing earnings per share
MethodPer share
Its own P/E history, lower quartile$244.19
Its own P/E history, median$282.89
Its own P/E history, upper quartile$315.51
52-week range$281.40 – $385.56
Today$319.66

Multiples from SEC filings and end-of-day closes; implied growth from a reverse discounted cash flow. Group medians across the names Ryufin tracks.

What is it worth?

Today's price against what its own multiples, its cash flow and your growth assumption say it is worth.

Against its own past

Its multiples now against their own history, and how much of the price move came from earnings rather than the multiple.