The Home Depot, Inc.
INTRODUCTION The Home Depot, Inc. is the world s largest home improvement retailer based on net sales for fiscal 2025. We offer our customers a wide assortment of home improvement products, building materials, lawn and garden products, d cor products, and facilities MRO products, in stores and online.
$322.90
-$4.83 (-1.47%)
Live
12.68% operating margin is respectable but not wide. ROIC at 20.68%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 3.2%, steady but not accelerating. Free cash flow declined 23% despite revenue growth, conversion is weakening.
Free cash flow declined 23% versus the prior year, cash generation momentum has weakened. ROIC dropped from 25.88% to 20.68%, capital efficiency is deteriorating.
22.6x earnings, 21.3x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$169.18B
▲ +3.2% YoY
Net Income (TTM)
$14.23B
▼ -4.4% YoY
Op. Margin
12.43%
▼ -0.8pp YoY
ROIC
20.19%
▼ -5.2pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$15.10B
▼ -22.5% YoY
Op. Cash Flow (TTM)
$18.78B
▼ -17.6% YoY
Net Debt
$63.58B
Cash & Equiv.
$2.08B
5Y CAGR: +4.5%
5Y CAGR: -5.0%
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SourceComputed from the 10-Q filed 18 Aug 2026, covering the period ending 2 Aug 2026, as reported to the SEC. Data last refreshed 26 Aug 2026. How this is calculated.
Price from market data, live as of 23 Oct 2026. Fiscal year ends Jan. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is Home Depot (HD) overvalued?
At a P/E of 22.6 and a price-to-free-cash-flow of 21.3, Home Depot (HD) trades above a two-stage DCF intrinsic value of about $198.88 per share, so at $322.90 the stock looks overvalued (38.4% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Home Depot scores 51/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 2.9%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Home Depot's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $198.88 per share for HD, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $149.16. At today's $322.90, that puts the stock about 38.4% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Home Depot a high-quality business?+
Home Depot scores 51 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 12.4% operating margin and a 20.2% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does Home Depot (HD) pay a dividend, and how much?+
Yes, Home Depot pays a regular dividend of about $9.26 per share per year (typically in quarterly installments), a yield of roughly 2.9% at the current price. That is a payout ratio of about 64.8% of earnings, so the dividend is well covered. Home Depot has grown the dividend at roughly 7.0% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For HD's full payout history, growth streak and dividend-safety score, see the dividends tab.
Is Home Depot a good stock to buy right now?+
That depends on valuation and quality together, not either alone. HD currently trades above its estimated intrinsic value and scores 51/100 on quality (mixed). It also yields about 2.9%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.
Related stocks: Retail-Lumber & Other Building Materials Dealers
Spot a number that looks wrong? Check it in HD's SEC filings or
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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