The Home Depot, Inc.

SWX:HD Stock Report

Market Cap: CHF 271.4b

Home Depot Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow 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.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: HD (CHF269.4) is trading below our estimate of future cash flow value (CHF330.39)

Significantly Below Future Cash Flow Value: HD is trading below future cash flow value, but not by a significant amount.

Key Valuation Metric

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

Key metric: As HD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for HD. This is calculated by dividing HD's market cap by their current earnings.
What is HD's PE Ratio?
PE Ratio23.7x
EarningsUS$14.01b
Market CapUS$337.29b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.7x
LOW Lowe's Companies
17.8x6.51%US$120.9b
AVOL Avolta
34.4x-5.40%CHF 6.8b
KGF Kingfisher
20.8x12.66%UK£5.1b
FND Floor & Decor Holdings
30x10.32%US$6.0b
HD Home Depot
23.7x7.09%CHF 337.3b

Price-To-Earnings vs Peers: HD is good value based on its Price-To-Earnings Ratio (23.7x) compared to the peer average (25.7x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HD 23.7xIndustry Avg. 15.7xNo. of Companies18PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HD is expensive based on its Price-To-Earnings Ratio (23.7x) compared to the European Specialty Retail industry average (15.8x).

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 Ratio23.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate HD's Price-To-Earnings Fair Ratio for valuation analysis.

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.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF 269.40
CHF 303.07
+12.50%
9.48%CHF 351.89CHF 253.69n/a32
Jul ’27CHF 286.65
CHF 299.23
+4.39%
9.48%CHF 347.43CHF 250.47n/a32
Jun ’27CHF 244.25
CHF 291.21
+19.23%
9.34%CHF 338.24CHF 243.85n/a33
May ’27CHF 254.95
CHF 320.36
+25.66%
7.55%CHF 356.30CHF 262.91n/a33
Apr ’27CHF 261.91
CHF 326.48
+24.65%
7.55%CHF 363.12CHF 267.94n/a33
Mar ’27CHF 291.32
CHF 315.41
+8.27%
6.88%CHF 349.03CHF 257.54n/a33
Feb ’27CHF 287.00
CHF 308.44
+7.47%
8.48%CHF 351.77CHF 250.15n/a33
Jan ’27CHF 273.76
CHF 312.90
+14.30%
8.86%CHF 366.42CHF 252.16n/a33
Dec ’26n/a
CHF 323.52
0%
9.22%CHF 373.52CHF 257.05n/a33
Nov ’26n/a
CHF 348.13
0%
6.95%CHF 394.26CHF 265.75n/a33
Oct ’26n/a
CHF 348.45
0%
7.13%CHF 395.61CHF 266.66n/a33
Sep ’26n/a
CHF 350.95
0%
7.02%CHF 385.56CHF 268.53n/a32
Aug ’26n/a
CHF 343.51
0%
8.41%CHF 393.13CHF 250.18n/a33
Jul ’26n/a
CHF 331.72
0%
9.43%CHF 383.51CHF 244.05CHF 286.6535
Jun ’26n/a
CHF 344.85
0%
9.30%CHF 398.39CHF 253.52CHF 244.2536
May ’26n/a
CHF 355.05
0%
9.30%CHF 401.52CHF 246.67CHF 254.9537
Apr ’26n/a
CHF 381.66
0%
9.00%CHF 428.10CHF 263.00CHF 261.9137
Mar ’26n/a
CHF 389.56
0%
9.28%CHF 436.96CHF 265.72CHF 291.3235
Feb ’26n/a
CHF 392.19
0%
10.54%CHF 455.36CHF 265.93CHF 287.0035
Jan ’26n/a
CHF 389.38
0%
10.49%CHF 451.92CHF 263.92CHF 273.7635
Dec ’25n/a
CHF 380.15
0%
10.28%CHF 421.32CHF 259.00n/a35
Nov ’25n/a
CHF 348.26
0%
11.71%CHF 402.38CHF 243.50n/a35
Oct ’25n/a
CHF 328.15
0%
9.93%CHF 385.07CHF 238.66n/a34
Sep ’25n/a
CHF 321.49
0%
9.38%CHF 366.76CHF 238.86n/a33
Aug ’25CHF 204.00
CHF 334.45
+63.95%
8.56%CHF 372.16CHF 235.88n/a32
Jul ’25CHF 204.00
CHF 344.24
+68.75%
8.67%CHF 383.80CHF 239.31n/a31
CHF 299.3
Fair Value
10.0% undervalued intrinsic discount
32
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/07/30 12:26
End of Day Share Price 2026/07/30 00:00
Earnings2026/05/03
Annual Earnings2026/02/01

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

The Home Depot, Inc. is covered by 59 analysts. 33 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Christopher GrajaArgus Research Company
Peter BenedictBaird
Michael LasserBarclays