Latest Ratios: P/E Ratio 24.3x · EV/EBITDA 16.9x · ROE 145.5%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $343.8B | $373.5B | $409.1B | $356.0B | $324.6B | $387.8B | $291.9B | $250.2B | $209.8B | $237.9B | $169.8B |
| Enterprise Value | $407.8B | $437.4B | $469.7B | $404.5B | $372.2B | $431.7B | $327.5B | $285.5B | $237.2B | $261.3B | $190.8B |
| P/E Ratio → | 24.26 | 26.32 | 27.63 | 23.51 | 18.97 | 23.60 | 22.68 | 22.25 | 18.86 | 27.56 | 21.33 |
| P/S Ratio | 2.09 | 2.27 | 2.56 | 2.33 | 2.06 | 2.57 | 2.21 | 2.27 | 1.94 | 2.36 | 1.79 |
| P/B Ratio | 26.86 | 29.15 | 61.61 | 341.01 | 207.82 | — | 88.49 | — | — | 163.59 | 39.18 |
| P/FCF | 27.19 | 29.53 | 25.06 | 19.84 | 28.24 | 27.69 | 17.83 | 22.66 | 19.56 | 23.47 | 20.80 |
| P/OCF | 21.06 | 22.88 | 20.65 | 16.82 | 22.21 | 23.40 | 15.50 | 18.23 | 15.93 | 19.77 | 17.35 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.66 | 2.94 | 2.65 | 2.36 | 2.86 | 2.48 | 2.59 | 2.19 | 2.59 | 2.02 |
| EV / EBITDA | 16.88 | 18.10 | 18.58 | 16.22 | 13.78 | 16.67 | 15.75 | 15.74 | 13.41 | 15.61 | 12.39 |
| EV / EBIT | 19.52 | 20.82 | 21.62 | 18.50 | 15.48 | 18.74 | 17.92 | 18.02 | 15.03 | 17.71 | 14.21 |
| EV / FCF | — | 34.59 | 28.77 | 22.54 | 32.38 | 30.83 | 20.00 | 25.85 | 22.12 | 25.78 | 23.38 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 33.3% | 33.3% | 33.4% | 33.4% | 33.5% | 33.6% | 34.0% | 34.1% | 34.3% | 34.0% | 34.2% |
| Operating Margin | 12.7% | 12.7% | 13.5% | 14.2% | 15.3% | 15.2% | 13.8% | 14.4% | 14.4% | 14.5% | 14.2% |
| Net Profit Margin | 8.6% | 8.6% | 9.3% | 9.9% | 10.9% | 10.9% | 9.7% | 10.2% | 10.3% | 8.6% | 8.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 145.5% | 145.5% | 385.4% | 1162.2% | 1095.1% | 2050.3% | 14061.2% | — | — | 298.3% | 149.4% |
| ROA | 14.1% | 14.1% | 17.2% | 19.8% | 23.1% | 23.1% | 21.1% | 23.6% | 25.1% | 19.7% | 18.7% |
| ROIC | 21.8% | 21.8% | 27.6% | 33.0% | 39.5% | 42.6% | 38.6% | 41.2% | 46.2% | 43.8% | 39.7% |
| ROCE | 29.8% | 29.8% | 35.3% | 40.2% | 49.8% | 50.9% | 45.5% | 52.7% | 55.8% | 51.4% | 46.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 5.10 | 5.10 | 9.38 | 50.04 | 32.24 | — | 13.16 | — | — | 18.59 | 5.45 |
| Debt / EBITDA | 2.70 | 2.70 | 2.46 | 2.10 | 1.86 | 1.79 | 2.09 | 2.06 | 1.65 | 1.61 | 1.53 |
| Net Debt / Equity | — | 4.99 | 9.13 | 46.44 | 30.48 | — | 10.77 | — | — | 16.12 | 4.86 |
| Net Debt / EBITDA | 2.65 | 2.65 | 2.40 | 1.94 | 1.76 | 1.70 | 1.71 | 1.94 | 1.55 | 1.40 | 1.37 |
| Debt / FCF | — | 5.06 | 3.71 | 2.70 | 4.14 | 3.14 | 2.17 | 3.19 | 2.56 | 2.31 | 2.58 |
| Interest Coverage | 8.71 | 8.71 | 9.36 | 11.25 | 14.87 | 17.10 | 13.57 | 13.19 | 15.01 | 13.96 | 13.81 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.06 | 1.06 | 1.11 | 1.35 | 1.41 | 1.01 | 1.23 | 1.08 | 1.11 | 1.17 | 1.25 |
| Quick Ratio | 0.26 | 0.26 | 0.29 | 0.40 | 0.33 | 0.24 | 0.51 | 0.29 | 0.28 | 0.38 | 0.37 |
| Cash Ratio | 0.04 | 0.04 | 0.06 | 0.17 | 0.12 | 0.08 | 0.34 | 0.12 | 0.11 | 0.22 | 0.18 |
| Asset Turnover | — | 1.57 | 1.66 | 1.99 | 2.06 | 2.10 | 1.87 | 2.15 | 2.46 | 2.27 | 2.20 |
| Inventory Turnover | 4.25 | 4.25 | 4.53 | 4.85 | 4.20 | 4.55 | 5.25 | 5.00 | 5.10 | 5.22 | 4.96 |
| Days Sales Outstanding | — | 12.41 | 11.22 | 7.96 | 7.69 | 8.27 | 8.27 | 6.97 | 6.53 | 7.06 | 7.83 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.7% | 2.5% | 2.2% | 2.4% | 2.4% | 1.8% | 2.2% | 2.4% | 2.2% | 1.8% | 2.0% |
| Payout Ratio | 64.7% | 64.7% | 60.3% | 55.4% | 45.5% | 42.5% | 50.1% | 53.0% | 42.3% | 48.8% | 42.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.1% | 3.8% | 3.6% | 4.3% | 5.3% | 4.2% | 4.4% | 4.5% | 5.3% | 3.6% | 4.7% |
| FCF Yield | 3.7% | 3.4% | 4.0% | 5.0% | 3.5% | 3.6% | 5.6% | 4.4% | 5.1% | 4.3% | 4.8% |
| Buyback Yield | 0.0% | 0.0% | 0.2% | 2.2% | 2.1% | 3.8% | 0.3% | 2.8% | 4.7% | 3.4% | 4.1% |
| Total Shareholder Yield | 2.7% | 2.5% | 2.3% | 4.6% | 4.5% | 5.6% | 2.5% | 5.2% | 7.0% | 5.1% | 6.1% |
| Shares Outstanding | — | $997M | $993M | $1.0B | $1.0B | $1.1B | $1.1B | $1.1B | $1.1B | $1.2B | $1.2B |
High leverage and cyclicality
Based on current market data, The Home Depot trades at a P/E of 24.52, which appears to price in a growth trajectory that may be disconnected from the recent volatility in earnings and the broader cyclical headwinds facing the home improvement sector.
The current PEG ratio of 6.86 suggests that investors are paying a significant premium for future growth that may not materialize given the current housing market stagnation. This valuation appears elevated compared to peers like Lowe's, implying that the market is assigning a scarcity premium to HD's professional distribution strategy that warrants further investigation.
According to reported financial statements, ROIC has trended downward from 8.5% in 2024Q2 to 5.1% in 2026Q1, indicating that the company's ability to generate returns on its invested capital is being challenged by both margin compression and the integration of large-scale acquisitions.
The decline in ROIC suggests that the capital deployed into the 'Complex Pro' segment and recent acquisitions may not yet be yielding the expected efficiency gains. Investors should monitor whether this trend represents a temporary integration hurdle or a permanent shift toward a lower-return, capital-intensive business model.
As indicated by the latest quarterly filings, the Cash Conversion Cycle has fluctuated between 41 and 63 days, reflecting the inherent difficulty in managing inventory turnover while simultaneously scaling a complex professional distribution network across a volatile macroeconomic landscape.
The increase in Days Inventory Outstanding to 86 days in 2026Q1 suggests that inventory management is becoming less efficient, potentially due to the accumulation of bulk materials for the Pro segment. This trend warrants caution, as it may indicate a mismatch between inventory procurement and actual customer demand cycles.
Based on the provided balance sheet data, the debt-to-EBITDA ratio of 11.62 in 2026Q1 highlights a significant reliance on debt financing, which may limit the company's financial flexibility during periods of prolonged economic contraction or rising interest rate environments.
The high leverage profile, combined with an interest coverage ratio that has moderated to 8.16, suggests that debt service is becoming a more prominent factor in the company's capital allocation decisions. Investors should monitor whether this debt burden constrains the company's ability to maintain its dividend and share repurchase programs.
The market frequently misapplies standard retail P/E multiples to The Home Depot, which obscures the reality that the company is increasingly functioning as a wholesale industrial distributor rather than a traditional consumer-facing retail entity.
By treating HD as a pure retailer, analysts may overlook the margin dilution inherent in the wholesale-style Pro business model. A more appropriate approach would involve evaluating the company through the lens of industrial distribution multiples, which typically account for lower margins and higher capital intensity.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying HD stock.
The Home Depot, Inc.'s current P/E ratio is 24.3x. The historical average is 24.8x. This places it at the 70th percentile of its historical range.
The Home Depot, Inc.'s current EV/EBITDA is 16.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.4x.
The Home Depot, Inc.'s return on equity (ROE) is 145.5%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 62.2%.
Based on historical data, The Home Depot, Inc. is trading at a P/E of 24.3x. This is at the 70th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
The Home Depot, Inc.'s current dividend yield is 2.66% with a payout ratio of 64.7%.
The Home Depot, Inc. has 33.3% gross margin and 12.7% operating margin. Operating margin between 10-20% is typical for established companies.
The Home Depot, Inc.'s Debt/EBITDA ratio is 2.7x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.