| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 46 | 22.9x | 17.5x | Around median | |
Growth | 23 | 2.5% | 7.1% | Bottom tier | |
Quality | 83 | 21.8% | 4.5% | Top tier | |
Safety | 64 | 2.4x | 2.6x | Around median | |
Capital Return | 50 | 2.82% | 0.06% | Around median | |
Momentum | 37 | -21.5% | -0.9% | Bottom tier | |
Sentiment | 41 | 21 | 3 | Around median |
The floor: what the company is worth if growth stopped today
64% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 5.13% as of 2026-10-21. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
The Home Depot, Inc. sells home improvement, repair, and maintenance materials and tools, serving do-it-yourself consumers and professional customers in the Pro category through stores, digital platforms, and delivery. Its ecosystem extends to SRS and GMS, enabling store associates to provide contractors with a broader assortment and handle more complex purchases through QuoteCenter. Opportunities to increase sales depend on repeat purchases of maintenance supplies and tools, expanding professionals' purchases within its ecosystem, and accelerating product delivery to homes and job sites.
In quarter 2 of fiscal year 2026 (ended 2026-08-02), revenue according to EL7 data was approximately $47.9 billion, net income was $4.8 billion, and diluted earnings per share were $4.79. Gross margin was 33.7%, and operating margin as calculated by EL7 was approximately 14.3%. The “Service” item in the segment breakdown was $1.3 billion, with a weight of 100.0% in that breakdown; this item alone does not explain the company's $47.9 billion revenue mix. A reliable comparison of year-over-year revenue growth or year-over-year margin changes is unavailable.
Over the last 12 months through 2026-08-02, revenue was $169.2 billion and net income was $14.2 billion. Operating cash flow according to EL7 data was approximately $18.8 billion, equivalent to 132% of net income, while free cash flow as calculated by EL7 (operating cash flow minus capital expenditure) over the last 12 months was approximately $15.1 billion. This highlights the company's central tension: strong cash generation alongside continued pressure on large renovation projects financed through borrowing.
Q2 FY2026 (2026-08)
Last 12 months to 2026-08-02
When: 2026-11-17
Comparable sales growth relative to the 1.7% threshold at the earnings announcement expected on 2026-11-17
Digital sales growth relative to the 11% threshold at the earnings announcement expected on 2026-11-17
The median target from 9 analysts was $378, with a range from $340 to $425 in the 2026-10-19 snapshot, a method that reflects growth expectations and naturally tends toward optimism. The discounted cash flow model estimated value at $221, with a range from $169 to $302 and a discount rate of 9.4%; it measures the value of cash expected to be generated and naturally tends toward conservatism. The no-growth value was $110, based on current after-tax operating profit remaining constant forever and a discount rate of 9.4%. The methods agree in showing a higher value when growth expectations are incorporated than under the no-growth value, but they differ clearly in the size of that addition: analyst targets reflect their growth expectations, while the cash flow model ties the estimate to discounted future cash flows.
Figures in the text are as of 2026-10-20; the live price is shown at the top of the page.
Comparable sales rose 1.7% in quarter 2 of fiscal year 2026 (ended 2026-08-02), versus the same quarter of the previous fiscal year, but management confirmed continued pressure on large discretionary projects. Comparable transactions declined 1%, while average transaction value rose 2.8% during the same period and on the same comparison. The 2026-10-03 news report explained that home equity line of credit costs are hindering renovation financing, so improving sales are insufficient to establish a recovery in this activity.
SRS and GMS enable Home Depot store associates to serve more complex professional purchases through QuoteCenter and a broader product assortment. On the 2026-08-18 call, management reported that 90% of stores had completed a sale through SRS during the preceding twelve months. SRS also recorded positive comparable sales across all its business areas during quarter 2 of fiscal year 2026 (ended 2026-08-02), outperforming the company average. The opportunity lies in increasing Home Depot's share of purchases by professionals who already shop at its stores.
Automated analysis for informational purposes only — not investment advice.
Change in comparable transactions relative to the negative 1% threshold at the earnings announcement expected on 2026-11-17
Operating cash flow according to EL7 data was approximately $18.8 billion over the last 12 months through 2026-08-02, versus net income of $14.2 billion. This represents earnings-to-cash conversion of 132% for the same period. Free cash flow as calculated by EL7 (operating cash flow minus capital expenditure) over the last 12 months was approximately $15.1 billion. These figures support the company's ability to invest, while total debt according to EL7 data remained at $62.6 billion in quarter 2 of fiscal year 2026 (ended 2026-08-02).
On the 2026-08-18 call, the company announced the nationwide rollout of Express Delivery to deliver tens of thousands of products within 3 hours. It reported that more than 65% of in-stock parcel shipments arrive the same day or the next day, and approximately 55% of in-stock big and bulky product shipments arrive within two days. Digital sales grew 11% in quarter 2 of fiscal year 2026 (ended 2026-08-02), versus the same quarter of the previous fiscal year. The commercial significance lies in making it easier for consumers to complete purchases and providing the materials professionals need to finish their work.
The median analyst target was $378 in the 2026-10-19 snapshot, versus $221 in the discounted cash flow model. Analyst targets reflect growth expectations and tend toward optimism, while the cash flow model values future cash flows at a discount rate of 9.4% and tends toward conservatism. The no-growth value was $110 because it assumes current after-tax operating profit remains constant forever. The divergence means that the amount of expected growth and the method used to calculate its value are key factors behind the differing estimates.