Home Depot stock: fundamental analysis
Stocks · HD · Consumer Cyclical
The Home Depot, Inc. operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. Below are its fundamentals, explained in the order worth reading them: business quality, debt, growth and, last, whether the price is reasonable.
- Price: 299.98 USD
- Market cap: 299.3B USD
Data as of September 18, 2026 · Yahoo Finance
Quick read
Business quality
ROE of 104.3%: it earns a high return on shareholders' money. An ROE this high is usually driven by debt or buybacks, not only by the business. Out of every 100 in sales, 8.4 end up as profit.
Financial health
Net debt/EBITDA of 2.5x: moderate leverage, manageable for stable businesses such as utilities or infrastructure.
Growth
Revenue is growing 5.7% year on year: modest growth. Earnings are up 4.6%.
Valuation
It trades at a P/E of 21.0, in line with the 20.4 median of the consumer cyclical companies we track. On expected earnings the P/E falls to 18.7: the market expects profits to rise.
Dividend
Dividend yield of 3.1% (9.32 USD per share per year) with a payout ratio of 64.8%.
Tools
All metrics
| Home Depot | Sector median | |
|---|---|---|
| Business quality | ||
| ROE | 104.3% | 26.4% |
| ROA | 12.1% | 7.0% |
| Gross margin | 32.8% | 50.8% |
| Operating margin | 12.9% | 13.7% |
| Net margin | 8.4% | 8.4% |
| Financial health | ||
| Net debt/EBITDA | 2.5x | 2.5x |
| Debt/equity | 3.8x | 0.6x |
| Current ratio | 1.1x | 1.2x |
| Growth | ||
| Revenue growth | 5.7% | 7.4% |
| Earnings growth | 4.6% | 8.0% |
| Valuation | ||
| P/E ratio | 21.0x | 20.4x |
| Forward P/E | 18.7x | 18.7x |
| EV/EBITDA | 14.6x | 15.4x |
| Price/book | 18.0x | 7.0x |
| FCF yield | 3.6% | 3.6% |
| Dividend | ||
| Dividend yield | 3.1% | 3.1% |
| Payout ratio | 64.8% | 59.7% |
| Beta (volatility) | 1.0x | 1.0x |
Frequently asked questions
What is Home Depot's P/E ratio?
Home Depot's P/E is 21.0 based on trailing 12-month earnings and 18.7 on expected earnings. The median for its sector among the companies we track is 20.4. Data as of September 18, 2026.
What dividend does Home Depot pay?
Dividend yield of 3.1% (9.32 USD per share per year) with a payout ratio of 64.8%.
Is Home Depot stock expensive?
It trades at a P/E of 21.0, in line with the 20.4 median of the consumer cyclical companies we track. On expected earnings the P/E falls to 18.7: the market expects profits to rise. This is an educational reading based on ratios, not a buy or sell recommendation.
Does Home Depot have a lot of debt?
Net debt/EBITDA of 2.5x: moderate leverage, manageable for stable businesses such as utilities or infrastructure.
What is Home Depot's market cap?
Home Depot has a market cap of 299.3B USD and its shares trade at 299.98 USD, with a 52-week range of 289.10 USD to 418.58 USD (data as of September 18, 2026).
Other companies in the sector
Trailing 12-month metrics. Educational content, not investment advice.