The Home Depot, Inc. (HD) P/E Ratio History
Historical price-to-earnings valuation from 1990 to 2025
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Valuation Context
How does the current P/E compare to historical and market benchmarks?
P/E Ratio Analysis
As of February 28, 2026, The Home Depot, Inc. (HD) trades at a price-to-earnings ratio of 26.8x, with a stock price of $380.72 and trailing twelve-month earnings per share of $14.20.
The current P/E is 18% above its 5-year average of 22.7x. Over the past five years, HD's P/E has ranged from a low of 17.7x to a high of 27.6x, placing the current valuation at the 90th percentile of its historical range.
Compared to the Consumer Cyclical sector median P/E of 18.8x, HD trades at a 43% premium to its sector peers. The sector includes 304 companies with P/E ratios ranging from 0.1x to 189.6x.
The PEG ratio of 7.49 (P/E divided by -5% EPS growth) suggests the stock may be expensive relative to its earnings growth. Peter Lynch popularized the rule that a PEG below 1.0 indicates an attractive entry point.
Relative to the broader market, HD trades roughly in line with the S&P 500 median P/E of 26.2x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our HD DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
Peer Comparison
P/E metrics vs. Home improvement and flooring retailers peers
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
HDThe Home Depot, Inc. | $378B | 26.8 | 7.49 | -5% |
LOWLowe's Companies, Inc. | $148B | 22.3 | 2.52 | -3% |
FNDFloor & Decor Holdings, Inc. | $7B | 36.0 | - | +1% |
LIVELive Ventures Incorporated | $43M | 2.8Lowest | 0.29Best | +158%Best |
PFAIPinnacle Food Group Limited Class A Common Shares | $17M | 106.6 | - | -64% |
Peers sorted by market capitalization. P/E below peers may indicate undervaluation or lower growth expectations. Consider PEG ratio for growth-adjusted comparison.
Historical P/E Data
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Date | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2025 Q4 | Sun Feb 01 2026 00:00:00 GM | $374.59 | $14.23 | 26.3x | -1% |
| FY2025 Q3 | Sun Nov 02 2025 00:00:00 GM | $379.59 | $14.67 | 25.9x | -3% |
| FY2025 Q2 | Sun Aug 03 2025 00:00:00 GM | $373.66 | $14.72 | 25.4x | -4% |
| FY2025 Q1 | Sun May 04 2025 00:00:00 GM | $364.52 | $14.74 | 24.7x | -7% |
| FY2024 Q4 | Fri Jan 31 2025 00:00:00 GM | $411.98 | $14.92 | 27.6x | +4% |
| FY2024 Q3 | Sun Oct 27 2024 00:00:00 GM | $398.91 | $14.72 | 27.1x | +2% |
| FY2024 Q2 | Sun Jul 28 2024 00:00:00 GM | $359.51 | $14.86 | 24.2x | -9% |
| FY2024 Q1 | Sun Apr 28 2024 00:00:00 GM | $335.09 | $14.91 | 22.5x | -15% |
| FY2023 Q4 | Wed Jan 31 2024 00:00:00 GM | $352.96 | $15.10 | 23.4x | -12% |
| FY2023 Q3 | Sun Oct 29 2023 00:00:00 GM | $276.46 | $15.58 | 17.7x | -33% |
| FY2023 Q2 | Sun Jul 30 2023 00:00:00 GM | $331.37 | $16.01 | 20.7x | -22% |
| FY2023 Q1 | Sun Apr 30 2023 00:00:00 GM | $300.54 | $16.41 | 18.3x | -31% |
Average P/E for displayed period: 26.5x
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Start ComparisonFrequently Asked Questions
Is HD stock overvalued or undervalued?
HD trades at 26.8x P/E, near its 5-year average of 22.7x. The 90th percentile ranking places valuation within normal historical bounds.
How does HD's valuation compare to peers?
The Home Depot, Inc. P/E of 26.8x compares to sector median of 18.8x. The premium reflects expected growth above peers.
What is HD's PEG ratio?
HD PEG ratio is 7.49. Above 2.0 indicates premium valuation relative to growth rate. Historical P/E data spans 1990-2025.