Home Depot Valuation

Q: What is the Fair Price of HD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

HD (CHF204) is trading below our estimate of [[fair value]] (CHF249.79)

Is HD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HD (CHF204) is trading below our estimate of fair value (CHF249.79)

Significantly Below Fair Value: HD is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HD?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for HD. This is calculated by dividing HD's market cap by their current preferred multiple.
What is HD's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	US$359.02b

HD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.8x
Enterprise Value/EBITDA	17.2x
PEG Ratio	3.9x

Price to Earnings Ratio vs Peers

How does HD's PE Ratio compare to its peers?

The above table shows the PE ratio for HD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	31.1x
LOW Lowe's Companies	19x	4.0%	US$138.6b
AVOL Avolta	39.1x	24.8%	CHF 4.9b
FND Floor & Decor Holdings	54.3x	13.7%	US$11.5b
MOZN mobilezone holding ag	12x	8.3%	CHF 585.0m
HD Home Depot	24.3x	6.2%	CHF 359.0b

Price-To-Earnings vs Peers: HD is good value based on its Price-To-Earnings Ratio (24.3x) compared to the peer average (30.9x).

Price to Earnings Ratio vs Industry

How does HD's PE Ratio compare vs other companies in the European Specialty Retail Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	13.9%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	13.9%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: HD is expensive based on its Price-To-Earnings Ratio (24.3x) compared to the European Specialty Retail industry average (16.2x).

Price to Earnings Ratio vs Fair Ratio

What is HD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	24.3x
Fair PE Ratio	35.6x

Price-To-Earnings vs Fair Ratio: HD is good value based on its Price-To-Earnings Ratio (24.3x) compared to the estimated Fair Price-To-Earnings Ratio (35.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst HD forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	CHF 204.00	CHF 329.77 +61.7%	8.5%	CHF 367.75	CHF 233.63	n/a	33
Aug ’25	CHF 204.00	CHF 334.45 +63.9%	8.6%	CHF 372.16	CHF 235.88	n/a	32
Jul ’25	CHF 204.00	CHF 342.05 +67.7%	8.7%	CHF 381.35	CHF 237.78	n/a	31
Jun ’25	CHF 204.00	CHF 347.80 +70.5%	8.7%	CHF 388.22	CHF 242.06	n/a	32
May ’25	CHF 204.00	CHF 351.08 +72.1%	9.4%	CHF 401.41	CHF 239.93	n/a	33
Apr ’25	CHF 204.00	CHF 347.13 +70.2%	9.5%	CHF 397.99	CHF 237.89	n/a	33
Mar ’25	CHF 204.00	CHF 332.06 +62.8%	9.6%	CHF 366.97	CHF 232.56	n/a	33
Feb ’25	CHF 204.00	CHF 300.27 +47.2%	10.5%	CHF 355.95	CHF 225.58	n/a	32
Jan ’25	CHF 204.00	CHF 288.15 +41.3%	8.0%	CHF 333.96	CHF 225.21	n/a	33
Dec ’24	CHF 204.00	CHF 292.07 +43.2%	6.7%	CHF 331.40	CHF 232.42	n/a	33
Nov ’24	CHF 204.00	CHF 309.48 +51.7%	7.5%	CHF 346.21	CHF 237.12	n/a	32
Oct ’24	CHF 204.00	CHF 317.25 +55.5%	7.2%	CHF 350.21	CHF 239.86	n/a	32
Sep ’24	CHF 204.00	CHF 305.65 +49.8%	7.5%	CHF 339.21	CHF 232.32	n/a	31
Aug ’24	CHF 204.00	CHF 277.39 +36.0%	8.5%	CHF 319.87	CHF 223.91	CHF 204.00	32
Jul ’24	CHF 204.00	CHF 284.98 +39.7%	7.8%	CHF 322.89	CHF 232.30	CHF 204.00	32
Jun ’24	CHF 204.00	CHF 281.94 +38.2%	7.6%	CHF 323.31	CHF 232.60	CHF 204.00	32
May ’24	CHF 204.00	CHF 294.91 +44.6%	8.5%	CHF 358.69	CHF 236.74	CHF 204.00	31
Apr ’24	CHF 204.00	CHF 302.27 +48.2%	8.7%	CHF 365.91	CHF 241.50	CHF 204.00	30
Mar ’24	CHF 204.00	CHF 310.05 +52.0%	8.6%	CHF 375.96	CHF 248.13	CHF 204.00	31
Feb ’24	CHF 204.00	CHF 313.82 +53.8%	11.5%	CHF 427.11	CHF 234.45	CHF 204.00	30
Jan ’24	CHF 204.00	CHF 320.24 +57.0%	11.5%	CHF 436.99	CHF 239.88	CHF 204.00	30
Dec ’23	CHF 204.00	CHF 329.16 +61.4%	11.6%	CHF 446.31	CHF 244.99	CHF 204.00	30
Nov ’23	CHF 204.00	CHF 355.18 +74.1%	11.3%	CHF 470.06	CHF 267.03	CHF 204.00	31
Oct ’23	CHF 204.00	CHF 354.77 +73.9%	10.8%	CHF 466.76	CHF 265.16	CHF 204.00	30
Sep ’23	CHF 204.00	CHF 351.57 +72.3%	10.5%	CHF 459.55	CHF 261.06	CHF 204.00	30
Aug ’23	CHF 204.00	CHF 336.15 +64.8%	11.1%	CHF 437.50	CHF 256.67	CHF 204.00	29

Analyst Forecast: Target price is less than 20% higher than the current share price.