The Home DepotStock Price and Value Analysis

Should you buy The Home Depot stock? (NYSE:HD). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
  • This company has amazingly consistent growth!
  • This company has an average dividend yield.
  • This company is making money at a decent rate.
  • This company is a well-established bedrock.
  • This stock looks overpriced.

HD Free Cash Flow Trend

Based on historical returns, we believe that The Home Depot can grow its free cash at a rate of about 6%. That's positive!

Free Cash Flow trendline for HD
Free Cash Flow trendline for The Home Depot

Inside the HD Numbers

HD Price
(The Home Depot stock price per share)
$183.41
[?] HD Fair Price
(based on intrinsic value)
$68.14
[?] HD Safety Price (based on a variable margin of safety) $57.92
[?] PE Ratio versus Sector 23% higher than other Services stocks
[?] PE Ratio versus Industry 54% higher than other Home Improvement Stores stocks
[?] Cash Yield 4.54%
[?] Free Cash Flow Jitter 11%
[?] Dividend Yield 2%

Is The Home Depot Stock on Sale?

We believe that The Home Depot may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

The Home Depot looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy HD Stock?

Does The Home Depot have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.