The Home Depot, Inc. (HD) Financial Ratios
30 years of historical data (1996–2025) · Consumer Cyclical · Home Improvement
EV/EBITDA
↑
16.43
-1% vs avg
5yr avg: 16.67
30Y Low7.1·High31.3
P/FCF
↑
26.33
+1% vs avg
5yr avg: 26.07
30Y Low9.9·High45.9
P/B Ratio
↓
26.01
↓-84% vs avg
5yr avg: 159.89
30Y Low2.0·High163.6
ROE
↓
145.5%
↑-85% vs avg
5yr avg: 967.7%
30Y Low13%·High385%
Debt/EBITDA
↑
2.70
↑+24% vs avg
5yr avg: 2.18
30Y Low0.2·High2.7
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
HD Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
The Home Depot, Inc. trades at 23.5x earnings, roughly in line with its 5-year average of 24.0x, sitting at the 63rd percentile of its historical range. Compared to the Consumer Cyclical sector median P/E of 21.2x, the stock trades at a premium of 11%. On a free-cash-flow basis, the stock trades at 26.3x P/FCF, roughly in line with the 5-year average of 26.1x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $333.0B | $373.5B | $409.1B | $356.0B | $324.6B | $387.8B | $291.9B | $250.2B | $209.8B | $237.9B | $169.8B |
| Enterprise Value | $396.9B | $437.4B | $469.7B | $404.5B | $372.2B | $431.7B | $327.5B | $285.5B | $237.2B | $261.3B | $190.8B |
| P/E Ratio → | 23.49 | 26.32 | 27.63 | 23.51 | 18.97 | 23.60 | 22.68 | 22.25 | 18.86 | 27.56 | 21.33 |
| P/S Ratio | 2.02 | 2.27 | 2.56 | 2.33 | 2.06 | 2.57 | 2.21 | 2.27 | 1.94 | 2.36 | 1.79 |
| P/B Ratio | 26.01 | 29.15 | 61.61 | 341.01 | 207.82 | — | 88.49 | — | — | 163.59 | 39.18 |
| P/FCF | 26.33 | 29.53 | 25.06 | 19.84 | 28.24 | 27.69 | 17.83 | 22.66 | 19.56 | 23.47 | 20.80 |
| P/OCF | 20.40 | 22.88 | 20.65 | 16.82 | 22.21 | 23.40 | 15.50 | 18.23 | 15.93 | 19.77 | 17.35 |
P/E links to full P/E history page with 30-year chart
HD EV Ratios
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 16.7x. The Consumer Cyclical sector median is 12.2x, placing the stock at a 35% 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 | — | 2.66 | 2.94 | 2.65 | 2.36 | 2.86 | 2.48 | 2.59 | 2.19 | 2.59 | 2.02 |
| EV / EBITDA | 16.43 | 18.10 | 18.58 | 16.22 | 13.78 | 16.67 | 15.75 | 15.74 | 13.41 | 15.61 | 12.39 |
| EV / EBIT | 19.00 | 20.82 | 21.62 | 18.50 | 15.48 | 18.74 | 17.92 | 18.02 | 15.03 | 17.71 | 14.21 |
| EV / FCF | — | 34.59 | 28.77 | 22.54 | 32.38 | 30.83 | 20.00 | 25.85 | 22.12 | 25.78 | 23.38 |
HD Profitability
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 2.0%. 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 5.3%. ROIC of 21.8% represents excellent returns on invested capital versus a sector median of 5.2%.
Margins
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% |
Return on Capital
| 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 | 21.8% | 21.8% | 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% |
HD Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
The Home Depot, Inc. carries a Debt/EBITDA ratio of 2.7x, which is moderately leveraged (43% below the sector average of 4.8x). Net debt stands at $64.0B ($65.3B 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 | 5.10 | 5.10 | 9.38 | 50.04 | 32.24 | — | 13.16 | — | — | 18.59 | 5.45 |
| Debt / EBITDA | 2.70 | 2.70 | 2.46 | 2.10 | 1.86 | 1.79 | 2.09 | 2.06 | 1.65 | 1.61 | 1.53 |
| Net Debt / Equity | — | 4.99 | 9.13 | 46.44 | 30.48 | — | 10.77 | — | — | 16.12 | 4.86 |
| Net Debt / EBITDA | 2.65 | 2.65 | 2.40 | 1.94 | 1.76 | 1.70 | 1.71 | 1.94 | 1.55 | 1.40 | 1.37 |
| Debt / FCF | — | 5.06 | 3.71 | 2.70 | 4.14 | 3.14 | 2.17 | 3.19 | 2.56 | 2.31 | 2.58 |
| Interest Coverage | 8.71 | 8.71 | 9.36 | 11.25 | 14.87 | 17.10 | 13.57 | 13.19 | 15.01 | 13.96 | 13.81 |
HD Liquidity & Efficiency
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 |
HD Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
The Home Depot, Inc. returns 2.7% 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 4.3% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 2.7% | 2.5% | 2.2% | 2.4% | 2.4% | 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% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.3% | 3.8% | 3.6% | 4.3% | 5.3% | 4.2% | 4.4% | 4.5% | 5.3% | 3.6% | 4.7% |
| FCF Yield | 3.8% | 3.4% | 4.0% | 5.0% | 3.5% | 3.6% | 5.6% | 4.4% | 5.1% | 4.3% | 4.8% |
| Buyback Yield | 0.0% | 0.0% | 0.2% | 2.2% | 2.1% | 3.8% | 0.3% | 2.8% | 4.7% | 3.4% | 4.1% |
| Total Shareholder Yield | 2.7% | 2.5% | 2.3% | 4.6% | 4.5% | 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 |
Peer Comparison
Compare HD with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 HDYou | $333B | 23.5 | 16.4 | 26.3 | 33.3% | 12.7% | 145.5% | 21.8% | 2.7 |
 LOW | $125B | 18.7 | 13.9 | 16.3 | 33.5% | 11.8% | — | 26.5% | 3.7 |
 TSCO | $16B | 14.7 | 11.0 | 21.5 | 33.2% | 9.5% | 45.2% | 14.0% | 3.0 |
 FND | $6B | 27.6 | 17.7 | 89.5 | 41.1% | 5.9% | 9.1% | 4.4% | 7.1 |
 BLDR | $9B | 20.7 | 10.4 | 10.4 | 29.0% | 5.2% | 10.1% | 6.4% | 4.1 |
 MNRO | $467M | 565.5 | 12.2 | 12.0 | 35.0% | 1.3% | 0.4% | 1.1% | 6.3 |
 WSO | $16B | 32.7 | 22.2 | 30.4 | 28.0% | 9.6% | 15.8% | 16.6% | 0.7 |
 SITE | $5B | 32.7 | 15.0 | 19.8 | 34.8% | 5.1% | 9.3% | 7.3% | 2.6 |
 SHW | $79B | 31.2 | 21.3 | 29.8 | 48.9% | 16.1% | 59.4% | 16.5% | 3.3 |
 MAS | $15B | 19.3 | 12.5 | 17.3 | 35.5% | 16.8% | 7363.6% | 35.4% | 2.4 |
 WHR | $3B | 6.9 | 9.1 | 27.4 | 15.2% | 4.7% | 11.2% | 5.8% | 7.4 |
| Consumer Cyclical Median | — | 21.2 | 12.2 | 15.6 | 36.2% | 2.0% | 5.3% | 5.2% | 4.8 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
Consensus-Based Analysis Tools
Full Stock Analysis
Deep dive into HD consensus models and risk factors.
View Analysis
Should I Buy HD?
Wall Street verdict, signals, and target summaries.
See Verdict
Intrinsic Valuation
DCF models, multiple analysis, and analyst estimates.
Check Valuation
Historical Returns
10-year return with dividends reinvested.
Calculate
DCA Calculator
See how regular investing compounds over time.
Run Numbers
Peer Comparison
Compare growth, multiples, and margins vs sector.
Compare
HD — Frequently Asked Questions
Quick answers to the most common questions about buying HD stock.
What is The Home Depot, Inc.'s P/E ratio?
The Home Depot, Inc.'s current P/E ratio is 23.5x. The historical average is 24.8x. This places it at the 63th percentile of its historical range.
What is The Home Depot, Inc.'s EV/EBITDA?
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.
What is The Home Depot, Inc.'s ROE?
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%.
Is HD stock overvalued?
Based on historical data, The Home Depot, Inc. is trading at a P/E of 23.5x. This is at the 63th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is The Home Depot, Inc.'s dividend yield?
The Home Depot, Inc.'s current dividend yield is 2.75% with a payout ratio of 64.7%.
What are The Home Depot, Inc.'s profit margins?
The Home Depot, Inc. has 33.3% gross margin and 12.7% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does The Home Depot, Inc. have?
The Home Depot, Inc.'s Debt/EBITDA ratio is 2.7x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.