Home Depot Valuation

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

HDID (€302.55) is trading below our estimate of [[fair value]] (€328.98)

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

Below Fair Value: HDID (€302.55) is trading below our estimate of fair value (€328.98)

Significantly Below Fair Value: HDID 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 HDID?

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

The above table shows the Price to Earnings ratio for HDID. This is calculated by dividing HDID's market cap by their current earnings.
What is HDID's PE Ratio?
PE Ratio	25.2x
Earnings	US$14.77b
Market Cap	US$371.60b

HDID 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	2.9x
Enterprise Value/EBITDA	17.7x
PEG Ratio	4.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HDID 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	19.7x
KGF Kingfisher	15.1x	13.6%	UK£5.2b
WIX Wickes Group	11.7x	12.6%	UK£359.7m
VIC Victorian Plumbing Group	29.9x	36.2%	UK£361.5m
LOW Lowe's Companies	21.9x	5.9%	US$148.6b
HDID Home Depot	25.2x	5.6%	€371.6b

Price-To-Earnings vs Peers: HDID is expensive based on its Price-To-Earnings Ratio (25.2x) compared to the peer average (19x).

Price to Earnings Ratio vs Industry

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

1 Company	Price / Earnings	Estimated Growth	Market Cap
WRKS TheWorks.co.uk	2x	n/a	US$16.45m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: HDID is expensive based on its Price-To-Earnings Ratio (25.2x) compared to the UK Specialty Retail industry average (16.8x).

Price to Earnings Ratio vs Fair Ratio

What is HDID'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.

HDID PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	25.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate HDID'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?

Analyst Forecast: Insufficient data to show price forecast.

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