The Home Depot, Inc.

DB:HDI Stock Report

Market Cap: €305.5b

Home Depot Valuation

Is HDI 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 Future Cash Flow Value

What is the Fair Price of HDI 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: HDI (€303.5) is trading below our estimate of future cash flow value (€321.91)

Significantly Below Future Cash Flow Value: HDI 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 HDI?

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

The above table shows the Price to Earnings ratio for HDI. This is calculated by dividing HDI's market cap by their current earnings.
What is HDI's PE Ratio?
PE Ratio24.8x
EarningsUS$14.01b
Market CapUS$347.85b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HDI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.5x
HBM HORNBACH Baumarkt
18.6xn/a€2.0b
HBH HORNBACH Holding KGaA
9.5x5.17%€1.3b
LOW Lowe's Companies
18.8x6.51%US$124.7b
ZAL Zalando
51.1x30.78%€6.0b
HDI Home Depot
24.8x7.09%€347.9b

Price-To-Earnings vs Peers: HDI is expensive based on its Price-To-Earnings Ratio (24.8x) compared to the peer average (24.5x).

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 HDI's PE Ratio compare vs other companies in the European Specialty Retail Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HDI 24.8xIndustry Avg. 15.7xNo. of Companies11PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HDI is expensive based on its Price-To-Earnings Ratio (24.8x) compared to the European Specialty Retail industry average (15.7x).

Price to Earnings Ratio vs Fair Ratio

What is HDI'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.

HDI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.8x
Fair PE Ratio25.6x

Price-To-Earnings vs Fair Ratio: HDI is good value based on its Price-To-Earnings Ratio (24.8x) compared to the estimated Fair Price-To-Earnings Ratio (25.6x).

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 HDI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€303.50
€326.09
+7.44%
9.48%€378.62€272.96n/a32
Jun ’27€264.20
€318.42
+20.52%
9.34%€369.84€266.63n/a33
May ’27€280.40
€348.74
+24.37%
7.55%€387.85€286.19n/a33
Apr ’27€284.70
€356.18
+25.11%
7.55%€396.16€292.32n/a33
Mar ’27€314.60
€347.05
+10.31%
6.88%€384.04€283.38n/a33
Feb ’27€312.75
€333.77
+6.72%
8.48%€380.66€270.69n/a33
Jan ’27€294.35
€336.81
+14.43%
8.86%€394.41€271.42n/a33
Dec ’26€305.50
€347.10
+13.62%
9.22%€400.74€275.78n/a33
Nov ’26€325.40
€376.49
+15.70%
6.95%€426.38€287.40n/a33
Oct ’26€339.95
€372.88
+9.69%
7.13%€423.34€285.35n/a33
Sep ’26€347.90
€374.72
+7.71%
7.02%€411.69€286.73n/a32
Aug ’26€322.30
€370.38
+14.92%
8.41%€423.89€269.75n/a33
Jul ’26€311.40
€355.09
+14.03%
9.43%€410.53€261.25n/a35
Jun ’26€325.35
€368.55
+13.28%
9.30%€425.77€270.95€264.2036
May ’26€316.65
€379.06
+19.71%
9.30%€428.68€263.35€280.4037
Apr ’26€335.85
€398.83
+18.75%
9.00%€447.36€274.83€284.7037
Mar ’26€377.70
€416.05
+10.15%
9.28%€466.67€283.78€314.6035
Feb ’26€397.00
€415.44
+4.64%
10.54%€482.35€281.69€312.7535
Jan ’26€377.50
€414.18
+9.72%
10.49%€480.70€280.73€294.3535
Dec ’25€407.35
€409.08
+0.42%
10.28%€453.39€278.71€305.5035
Nov ’25€366.50
€370.82
+1.18%
11.71%€428.44€259.27€325.4035
Oct ’25€368.40
€348.23
-5.47%
9.93%€408.64€253.26€339.9534
Sep ’25€334.80
€342.70
+2.36%
9.38%€390.96€254.62€347.9033
Aug ’25€339.60
€354.77
+4.47%
8.56%€394.77€250.21€322.3032
Jul ’25€323.55
€355.01
+9.72%
8.67%€395.80€246.79€311.4031
Jun ’25€304.60
€350.98
+15.23%
8.73%€391.77€244.28€325.3532
€322.19
Fair Value
5.8% 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 Analysis2026/06/28 21:36
End of Day Share Price 2026/06/26 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