The Home Depot, Inc.

BIT:1HD Stock Report

Market Cap: €334.9b

Home Depot Valuation

Is 1HD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 1HD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€346.61
Fair Value
3.5% undervalued intrinsic discount
37
Number of Analysts

Below Fair Value: 1HD (€334.4) is trading below our estimate of fair value (€346.61)

Significantly Below Fair Value: 1HD 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 1HD?

Key metric: As 1HD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1HD. This is calculated by dividing 1HD's market cap by their current earnings.
What is 1HD's PE Ratio?
PE Ratio24.2x
EarningsUS$14.81b
Market CapUS$361.60b

Price to Earnings Ratio vs Peers

How does 1HD's PE Ratio compare to its peers?

The above table shows the PE ratio for 1HD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26x
LOW Lowe's Companies
18.6x6.1%US$130.4b
FND Floor & Decor Holdings
43.3x18.3%US$9.2b
KGF Kingfisher
23x20.1%UK£4.3b
BAN BasicNet
19.1xn/a€376.9m
1HD Home Depot
24.2x6.0%€361.6b

Price-To-Earnings vs Peers: 1HD is good value based on its Price-To-Earnings Ratio (24.2x) compared to the peer average (26x).

Price to Earnings Ratio vs Industry

How does 1HD's PE Ratio compare vs other companies in the European Specialty Retail Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1HD 24.2xIndustry Avg. 18.1xNo. of Companies13PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1HD is expensive based on its Price-To-Earnings Ratio (24.2x) compared to the European Specialty Retail industry average (18.1x).

Price to Earnings Ratio vs Fair Ratio

What is 1HD'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.

1HD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.2x
Fair PE Ratio29.3x

Price-To-Earnings vs Fair Ratio: 1HD is good value based on its Price-To-Earnings Ratio (24.2x) compared to the estimated Fair Price-To-Earnings Ratio (29.3x).

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 1HD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€334.40
€399.57
+19.5%
9.0%€448.18€275.34n/a37
Mar ’26€376.50
€416.05
+10.5%
9.3%€466.67€283.78n/a35
Feb ’26€398.05
€419.05
+5.3%
10.5%€486.55€284.15n/a35
Jan ’26€373.75
€414.18
+10.8%
10.5%€480.70€280.73n/a35
Dec ’25€406.70
€409.08
+0.6%
10.3%€453.39€278.71n/a35
Nov ’25€364.40
€372.87
+2.3%
11.7%€430.82€260.71n/a35
Oct ’25€365.65
€348.23
-4.8%
9.9%€408.64€253.26n/a34
Sep ’25€330.75
€340.04
+2.8%
9.4%€387.92€252.64n/a33
Aug ’25€334.50
€354.77
+6.1%
8.6%€394.77€250.21n/a32
Jul ’25€314.30
€356.92
+13.6%
8.7%€397.93€248.12n/a31
Jun ’25€304.45
€350.64
+15.2%
8.7%€391.38€244.04n/a32
May ’25€312.45
€362.16
+15.9%
9.4%€414.08€247.51n/a33
Apr ’25€355.20
€357.29
+0.6%
9.5%€409.64€244.85n/a33
Mar ’25€354.00
€347.44
-1.9%
9.6%€383.96€243.33€376.5033
Feb ’25€326.80
€322.08
-1.4%
10.5%€381.80€241.96€398.0532
Jan ’25€313.80
€305.85
-2.5%
8.0%€354.47€239.04€373.7533
Dec ’24€291.60
€303.56
+4.1%
6.7%€344.44€241.57€406.7033
Nov ’24€270.40
€323.32
+19.6%
7.5%€361.69€247.72€364.4032
Oct ’24€287.00
€328.45
+14.4%
7.2%€362.57€248.32€365.6532
Sep ’24€308.20
€318.92
+3.5%
7.5%€353.93€242.41€330.7531
Aug ’24€303.60
€290.31
-4.4%
8.5%€334.78€234.34€334.5032
Jul ’24€283.60
€291.71
+2.9%
7.8%€330.52€237.79€314.3032
Jun ’24€266.20
€290.30
+9.1%
7.6%€332.89€239.50€304.4532
May ’24€268.40
€299.77
+11.7%
8.5%€364.60€240.64€312.4531
Apr ’24€266.35
€304.63
+14.4%
8.7%€368.76€243.38€355.2030
Mar ’24€271.85
€309.39
+13.8%
8.6%€375.16€247.61€354.0031
Analyst Price Target
Consensus Narrative from 37 Analysts
€399.71
Fair Value
16.3% undervalued intrinsic discount
37
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 Analysis2025/03/25 03:42
End of Day Share Price 2025/03/25 00:00
Earnings2025/02/02
Annual Earnings2025/02/02

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 74 analysts. 38 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
Ishan MajumdarBaptista Research