The Home Depot, Inc.

LSE:0R1G Stock Report

Market Cap: US$397.3b

Home Depot Valuation

Is 0R1G undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 0R1G when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0R1G ($178.57) is trading below our estimate of fair value ($205.69)

Significantly Below Fair Value: 0R1G 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 0R1G?

Key metric: As 0R1G is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0R1G. This is calculated by dividing 0R1G's market cap by their current earnings.
What is 0R1G's PE Ratio?
PE Ratio27.2x
EarningsUS$14.61b
Market CapUS$397.35b

Price to Earnings Ratio vs Peers

How does 0R1G's PE Ratio compare to its peers?

The above table shows the PE ratio for 0R1G vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.6x
KGF Kingfisher
15.1x13.6%UK£5.1b
WIX Wickes Group
11.7x12.6%UK£358.7m
VIC Victorian Plumbing Group
29.9x36.2%UK£364.8m
LOW Lowe's Companies
21.7x5.9%US$146.5b
0R1G Home Depot
27.2x6.9%US$397.3b

Price-To-Earnings vs Peers: 0R1G is expensive based on its Price-To-Earnings Ratio (27.2x) compared to the peer average (19.6x).

Price to Earnings Ratio vs Industry

How does 0R1G's PE Ratio compare vs other companies in the GB Specialty Retail Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
WRKS TheWorks.co.uk
2xn/aUS$17.93m
No more companies available in this PE range
0R1G 27.2xIndustry Avg. 17.0xNo. of Companies5PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0R1G is expensive based on its Price-To-Earnings Ratio (27.2x) compared to the UK Specialty Retail industry average (17x).

Price to Earnings Ratio vs Fair Ratio

What is 0R1G'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.

0R1G PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.2x
Fair PE Ratio100.9x

Price-To-Earnings vs Fair Ratio: 0R1G is good value based on its Price-To-Earnings Ratio (27.2x) compared to the estimated Fair Price-To-Earnings Ratio (100.9x).

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 0R1G forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$178.57
US$428.01
+139.7%
10.3%US$475.00US$292.00n/a35
Nov ’25US$178.57
US$403.32
+125.9%
11.7%US$466.00US$282.00n/a35
Oct ’25US$178.57
US$387.74
+117.1%
9.9%US$455.00US$282.00n/a34
Sep ’25US$178.57
US$379.56
+112.6%
9.4%US$433.00US$282.00n/a33
Aug ’25US$178.57
US$382.83
+114.4%
8.6%US$426.00US$270.00n/a32
Jul ’25US$178.57
US$381.20
+113.5%
8.7%US$425.00US$265.00n/a31
Jun ’25US$178.57
US$380.76
+113.2%
8.7%US$425.00US$265.00n/a32
May ’25US$178.57
US$384.83
+115.5%
9.4%US$440.00US$263.00n/a33
Apr ’25US$178.57
US$383.77
+114.9%
9.5%US$440.00US$263.00n/a33
Mar ’25US$178.57
US$375.53
+110.3%
9.6%US$415.00US$263.00n/a33
Feb ’25US$178.57
US$350.08
+96.0%
10.5%US$415.00US$263.00n/a32
Jan ’25US$178.57
US$336.51
+88.4%
8.0%US$390.00US$263.00n/a33
Dec ’24US$178.57
US$330.50
+85.1%
6.7%US$375.00US$263.00n/a33
Nov ’24US$178.57
US$343.27
+92.2%
7.5%US$384.00US$263.00US$178.5732
Oct ’24US$178.57
US$347.86
+94.8%
7.2%US$384.00US$263.00US$178.5732
Sep ’24US$178.57
US$346.02
+93.8%
7.5%US$384.00US$263.00US$178.5731
Aug ’24US$178.57
US$320.86
+79.7%
8.5%US$370.00US$259.00US$178.5732
Jul ’24US$178.57
US$317.73
+77.9%
7.8%US$360.00US$259.00US$178.5732
Jun ’24US$178.57
US$313.94
+75.8%
7.6%US$360.00US$259.00US$178.5732
May ’24US$178.57
US$328.87
+84.2%
8.5%US$400.00US$264.00US$178.5731
Apr ’24US$178.57
US$330.43
+85.0%
8.7%US$400.00US$264.00US$178.5730
Mar ’24US$178.57
US$329.87
+84.7%
8.6%US$400.00US$264.00US$178.5731
Feb ’24US$178.57
US$345.33
+93.4%
11.5%US$470.00US$258.00US$178.5730
Jan ’24US$178.57
US$344.43
+92.9%
11.5%US$470.00US$258.00US$178.5730
Dec ’23US$178.57
US$346.63
+94.1%
11.6%US$470.00US$258.00US$178.5730
Nov ’23US$178.57
US$355.13
+98.9%
11.3%US$470.00US$267.00US$178.5731

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

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