HD

$382.37

Public overview and default valuation.

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Valuation Details
Default assumptions: 10Y forecast, 9% market return, 2.5% terminal growth, 4.45% trendline growth.
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$326.72

With 20% Margin of Safety (MoS):

$261.38
-31.64% downside
Capital Efficiency
Average Quarterly ROIC
6.92%
Cost of Capital (estimated)11%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.
Fundamental Score
39
BearishWeighted across 6 signals
DCF Discount
31.6% premium to price
0
FCF Yield
5.6% trailing FCF yield
90
ROIC vs WACC
ROIC 6.9% vs WACC 11.0% (0.6x)
31
Net Debt / FCF
2.2x net debt to FCF
23
Buybacks
Share count flat
50
FCF CAGR (5Y)
5.4% 5Y FCF CAGR
52
Strengths: FCF Yield. Concerns: DCF Discount, ROIC vs WACC.
Narrative Score
66
Improving
Weighted across 6 recent drivers · Last 30 days-1 vs previousVs 6-Month Baseline: Low (11th pct)
Trend: Deteriorating downConfidence: 100%Updated: 3h ago
Sources: 210 (News 183 · Analyst 27)
Drivers
67 regulatory scrutiny+1.8
107 news sentiment-0.2
Restructuring-0.1
Layoffs-0.0
Upgrade headlines+0.0
4 legal risk+0.0
Other Metrics
P/E26.0
Profit Margin8.8%
Owner Earnings$21.74b
One Dollar Premise63.00%
Debt/Equity9.74
Current Ratio1.10
PEG-76.736
Free Cash Flow (in millions)
20062007200820092010201120122013201420152016201720182019202020212022202320242025
$10,501$11,203$9,285$7,375$6,091$5,681$7,872$8,287$9,017$9,684$10,876$11,404$13,928$15,607$16,401$21,302$19,137$17,734$24,398$21,371
How Intrinziq Estimates Fair Value

Intrinziq estimates The Home Depot, Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

The Home Depot, Inc.Consumer Cyclical

The Home Depot, Inc. operates as a home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products The company also offers installation services for flooring, cabinets and cabinet makeovers, countertops, furnaces and central air systems, and windows. In addition, it provides tool and equipment rental services. The company primarily serves homeowners; and professional renovators/remodelers, general contractors, maintenance professionals, handymen, property managers, building service contractors, and specialty tradesmen, such as electricians, plumbers, and painters. It also sells its products through websites, including homedepot.com; blinds.com, an online site for custom window coverings; and thecompanystore.com, an online site for textiles and décor products. As of December 31, 2021, the company operated 2,317 stores in the United States. The Home Depot, Inc. was incorporated in 1978 and is based in Atlanta, Georgia.

Last updated: Feb 06, 2026
Data sources: Financial Modeling Prep
This valuation is based on assumptions and publicly available data. It is not financial advice or a recommendation to buy or sell any security. Always do your own research before making investment decisions.