The Home Depot, Inc.

DB:HDI Stock Report

Market Cap: €400.6b

Home Depot Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • 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 HDI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HDI (€396.2) is trading below our estimate of fair value (€460.56)

Significantly Below Fair Value: HDI 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 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 Ratio28.6x
EarningsUS$14.61b
Market CapUS$417.21b

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 Average22.9x
HBM HORNBACH Baumarkt
24.8xn/a€1.8b
HBH HORNBACH Holding KGaA
7.7x6.8%€1.3b
LOW Lowe's Companies
21.9x5.9%US$149.5b
ZAL Zalando
37x21.9%€7.6b
HDI Home Depot
28.6x6.9%€417.2b

Price-To-Earnings vs Peers: HDI is expensive based on its Price-To-Earnings Ratio (28.6x) compared to the peer average (22.9x).

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 28.6xIndustry Avg. 16.3xNo. of Companies13PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HDI is expensive based on its Price-To-Earnings Ratio (28.6x) compared to the European Specialty Retail industry average (16.2x).

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 Ratio28.6x
Fair PE Ratio20.9x

Price-To-Earnings vs Fair Ratio: HDI is expensive based on its Price-To-Earnings Ratio (28.6x) compared to the estimated Fair Price-To-Earnings Ratio (20.9x).

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€396.20
€406.57
+2.6%
10.3%€451.20€277.37n/a35
Nov ’25€366.50
€372.87
+1.7%
11.7%€430.82€260.71n/a35
Oct ’25€368.40
€348.23
-5.5%
9.9%€408.64€253.26n/a34
Sep ’25€334.80
€340.04
+1.6%
9.4%€387.92€252.64n/a33
Aug ’25€339.60
€354.77
+4.5%
8.6%€394.77€250.21n/a32
Jul ’25€323.55
€356.92
+10.3%
8.7%€397.93€248.12n/a31
Jun ’25€304.60
€350.64
+15.1%
8.7%€391.38€244.04n/a32
May ’25€312.40
€362.16
+15.9%
9.4%€414.08€247.51n/a33
Apr ’25€357.40
€357.29
-0.03%
9.5%€409.64€244.85n/a33
Mar ’25€355.00
€347.44
-2.1%
9.6%€383.96€243.33n/a33
Feb ’25€325.60
€322.08
-1.1%
10.5%€381.80€241.96n/a32
Jan ’25€313.00
€305.85
-2.3%
8.0%€354.47€239.04n/a33
Dec ’24€289.40
€302.87
+4.7%
6.7%€343.65€241.01n/a33
Nov ’24€268.40
€323.32
+20.5%
7.5%€361.69€247.72€366.5032
Oct ’24€286.40
€328.45
+14.7%
7.2%€362.57€248.32€368.4032
Sep ’24€307.20
€318.92
+3.8%
7.5%€353.93€242.41€334.8031
Aug ’24€304.60
€290.31
-4.7%
8.5%€334.78€234.34€339.6032
Jul ’24€284.60
€291.71
+2.5%
7.8%€330.52€237.79€323.5532
Jun ’24€264.40
€290.30
+9.8%
7.6%€332.89€239.50€304.6032
May ’24€272.80
€299.77
+9.9%
8.5%€364.60€240.64€312.4031
Apr ’24€265.00
€304.63
+15.0%
8.7%€368.76€243.38€357.4030
Mar ’24€272.80
€309.39
+13.4%
8.6%€375.16€247.61€355.0031
Feb ’24€291.10
€314.36
+8.0%
11.5%€427.84€234.86€325.6030
Jan ’24€298.25
€324.73
+8.9%
11.5%€443.12€243.24€313.0030
Dec ’23€309.50
€335.47
+8.4%
11.6%€454.87€249.69€289.4030
Nov ’23€298.80
€359.53
+20.3%
11.3%€475.83€270.31€268.4031

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

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