30 years of historical data (1996–2025) · Consumer Cyclical · Home Improvement
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
The Home Depot, Inc. trades at 26.8x earnings, 11% above its 5-year average of 24.1x, sitting at the 77th percentile of its historical range. Compared to the Consumer Cyclical sector median P/E of 18.8x, the stock trades at a premium of 43%. On a free-cash-flow basis, the stock trades at 29.9x P/FCF, 14% above the 5-year average of 26.2x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $378.4B | $373.5B | $409.1B | $353.7B | $332.3B | $388.3B | $291.9B | $250.2B | $209.8B | $237.9B | $169.8B |
| Enterprise Value | $396.1B | $391.1B | $469.7B | $402.1B | $379.9B | $432.2B | $327.5B | $285.5B | $237.2B | $261.3B | $190.8B |
| P/E Ratio → | 26.75 | 26.32 | 27.63 | 23.36 | 19.42 | 23.63 | 22.68 | 22.25 | 18.86 | 27.56 | 21.33 |
| P/S Ratio | 2.30 | 2.27 | 2.56 | 2.32 | 2.11 | 2.57 | 2.21 | 2.27 | 1.94 | 2.36 | 1.79 |
| P/B Ratio | 29.62 | 29.15 | 61.61 | 338.76 | 212.72 | — | 88.49 | — | — | 163.59 | 39.18 |
| P/FCF | 29.93 | 29.53 | 25.06 | 19.71 | 28.90 | 27.72 | 17.83 | 22.66 | 19.56 | 23.47 | 20.80 |
| P/OCF | 23.18 | 22.88 | 20.65 | 16.70 | 22.74 | 23.43 | 15.50 | 18.23 | 15.93 | 19.77 | 17.35 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
The Home Depot, Inc.'s enterprise value stands at 16.4x EBITDA, roughly in line with its 5-year average of 16.3x. The Consumer Cyclical sector median is 11.0x, placing the stock at a 49% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.37 | 2.94 | 2.63 | 2.41 | 2.86 | 2.48 | 2.59 | 2.19 | 2.59 | 2.02 |
| EV / EBITDA | 16.39 | 16.19 | 18.58 | 16.13 | 14.06 | 16.69 | 15.75 | 15.74 | 13.41 | 15.61 | 12.39 |
| EV / EBIT | 18.96 | 18.61 | 21.62 | 18.39 | 15.80 | 18.76 | 17.92 | 18.02 | 15.03 | 17.71 | 14.21 |
| EV / FCF | — | 30.93 | 28.77 | 22.41 | 33.04 | 30.86 | 20.00 | 25.85 | 22.12 | 25.78 | 23.38 |
Margins and return-on-capital ratios measuring operating efficiency
The Home Depot, Inc. earns an operating margin of 12.7%, above the Consumer Cyclical sector average of 2.4%. Operating margins have compressed from 14.2% to 12.7% over the past 3 years, signaling potential cost pressures or competitive headwinds. Return on equity of 145.5% is exceptionally high, though this is partly amplified by negative book value driven by aggressive share buybacks — well above the sector median of 6.5%. ROIC of 32.1% represents excellent returns on invested capital versus a sector median of 5.6%.
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 33.3% | 33.3% | 33.4% | 33.4% | 33.5% | 33.6% | 34.0% | 34.1% | 34.3% | 34.0% | 34.2% |
| Operating Margin | 12.7% | 12.7% | 13.5% | 14.2% | 15.3% | 15.2% | 13.8% | 14.4% | 14.4% | 14.5% | 14.2% |
| Net Profit Margin | 8.6% | 8.6% | 9.3% | 9.9% | 10.9% | 10.9% | 9.7% | 10.2% | 10.3% | 8.6% | 8.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 145.5% | 145.5% | 385.4% | 1162.2% | 1095.1% | 2050.3% | 14061.2% | — | — | 298.3% | 149.4% |
| ROA | 14.1% | 14.1% | 17.2% | 19.8% | 23.1% | 23.1% | 21.1% | 23.6% | 25.1% | 19.7% | 18.7% |
| ROIC | 32.1% | 32.1% | 27.6% | 33.0% | 39.5% | 42.6% | 38.6% | 41.2% | 46.2% | 43.8% | 39.7% |
| ROCE | 29.8% | 29.8% | 35.3% | 40.2% | 49.8% | 50.9% | 45.5% | 52.7% | 55.8% | 51.4% | 46.1% |
Solvency and debt-coverage ratios — lower is generally safer
The Home Depot, Inc. carries a Debt/EBITDA ratio of 0.8x, which is very conservative (81% below the sector average of 4.2x). Net debt stands at $17.6B ($19.0B total debt minus $1.4B cash). Interest coverage of 8.7x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.48 | 1.48 | 9.38 | 50.04 | 32.24 | — | 13.16 | — | — | 18.59 | 5.45 |
| Debt / EBITDA | 0.79 | 0.79 | 2.46 | 2.10 | 1.86 | 1.79 | 2.09 | 2.06 | 1.65 | 1.61 | 1.53 |
| Net Debt / Equity | — | 1.38 | 9.13 | 46.44 | 30.48 | — | 10.77 | — | — | 16.12 | 4.86 |
| Net Debt / EBITDA | 0.73 | 0.73 | 2.40 | 1.94 | 1.76 | 1.70 | 1.71 | 1.94 | 1.55 | 1.40 | 1.37 |
| Debt / FCF | — | 1.39 | 3.71 | 2.70 | 4.14 | 3.14 | 2.17 | 3.19 | 2.56 | 2.31 | 2.58 |
| Interest Coverage | 8.66 | 8.66 | 9.27 | 11.16 | 14.87 | 17.10 | 13.57 | 13.19 | 14.78 | 13.89 | 13.81 |
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.06x means The Home Depot, Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 0.26x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has declined from 1.35x to 1.06x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.06 | 1.06 | 1.11 | 1.35 | 1.41 | 1.01 | 1.23 | 1.08 | 1.11 | 1.17 | 1.25 |
| Quick Ratio | 0.26 | 0.26 | 0.29 | 0.40 | 0.33 | 0.24 | 0.51 | 0.29 | 0.28 | 0.38 | 0.37 |
| Cash Ratio | 0.04 | 0.04 | 0.06 | 0.17 | 0.12 | 0.08 | 0.34 | 0.12 | 0.11 | 0.22 | 0.18 |
| Asset Turnover | — | 1.57 | 1.66 | 1.99 | 2.06 | 2.10 | 1.87 | 2.15 | 2.46 | 2.27 | 2.20 |
| Inventory Turnover | 4.25 | 4.25 | 4.53 | 4.85 | 4.20 | 4.55 | 5.25 | 5.00 | 5.10 | 5.22 | 4.96 |
| Days Sales Outstanding | — | 12.41 | 11.22 | 7.96 | 7.69 | 8.27 | 8.27 | 6.97 | 6.53 | 7.06 | 7.83 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
The Home Depot, Inc. returns 2.4% to shareholders annually primarily through dividends. A payout ratio of 64.7% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 3.7% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.4% | 2.5% | 2.2% | 2.4% | 2.3% | 1.8% | 2.2% | 2.4% | 2.2% | 1.8% | 2.0% |
| Payout Ratio | 64.7% | 64.7% | 60.3% | 55.4% | 45.5% | 42.5% | 50.1% | 53.0% | 42.3% | 48.8% | 42.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.7% | 3.8% | 3.6% | 4.3% | 5.1% | 4.2% | 4.4% | 4.5% | 5.3% | 3.6% | 4.7% |
| FCF Yield | 3.3% | 3.4% | 4.0% | 5.1% | 3.5% | 3.6% | 5.6% | 4.4% | 5.1% | 4.3% | 4.8% |
| Buyback Yield | 0.0% | 0.0% | 0.2% | 2.2% | 2.0% | 3.8% | 0.3% | 2.8% | 4.7% | 3.4% | 4.1% |
| Total Shareholder Yield | 2.4% | 2.5% | 2.3% | 4.6% | 4.4% | 5.6% | 2.5% | 5.2% | 7.0% | 5.1% | 6.1% |
| Shares Outstanding | — | $997M | $993M | $1.0B | $1.0B | $1.1B | $1.1B | $1.1B | $1.1B | $1.2B | $1.2B |
Compare HD with 6 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
| HDYou | $378B | 26.8 | 16.4 | 29.9 | 33.3% | 12.7% | 145.5% | 32.1% | 0.8 |
| LOW | $148B | 22.3 | 12.8 | 19.4 | 33.5% | 11.8% | — | 76.2% | 0.6 |
| FND | $7B | 36.0 | 33.3 | 116.2 | 43.6% | 5.8% | 9.1% | 5.3% | 6.7 |
| TTSH | $133M | -33.5 | — | — | 63.8% | -1.7% | -4.3% | -1.9% | — |
| LIVE | $43M | 2.8 | 7.9 | 2.0 | 32.7% | 3.3% | 27.0% | 3.5% | 6.8 |
| PFAI | $17M | 106.6 | 17.5 | — | 47.3% | 18.7% | 61.3% | — | 0.2 |
| LESL | $10M | -0.0 | 20.2 | — | 35.4% | 1.1% | — | 1.6% | 21.3 |
| Consumer Cyclical Median | — | 18.8 | 11.0 | 14.0 | 38.6% | 2.4% | 6.5% | 5.6% | 4.2 |
Peers based on L4 peer group classification. Compare multiple stocks →
Includes 30+ ratios · 30 years · Updated daily
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Start ComparisonThe Home Depot, Inc.'s current P/E ratio is 26.8x. The historical average is 24.8x. This places it at the 77th percentile of its historical range.
The Home Depot, Inc.'s current EV/EBITDA is 16.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.4x.
The Home Depot, Inc.'s return on equity (ROE) is 145.5%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 62.2%.
Based on historical data, The Home Depot, Inc. is trading at a P/E of 26.8x. This is at the 77th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
The Home Depot, Inc.'s current dividend yield is 2.41% with a payout ratio of 64.7%.
The Home Depot, Inc. has 33.3% gross margin and 12.7% operating margin. Operating margin between 10-20% is typical for established companies.
The Home Depot, Inc.'s Debt/EBITDA ratio is 0.8x, indicating low leverage. A ratio below 2x is generally considered financially healthy.