The Home Depot
Financial ratios & Valuation

Forward Multiples (2026 – 2029)

202620262027202720282029
Price/Earnings ratio
25.1223.9023.3523.7020.8719.12
Price/Sales ratio
2.672.632.562.622.422.34
Earnings per Share (EPS)
$16.20$17.03$17.43$17.18$19.51$21.3

Historical Multiples (2010 – 2022)

2010 2011 2012 2016 2017 2019 2020 2022 TTM Median
Valuation Ratios
Price/Earnings ratio
19.8318.2518.9923.0421.3819.0622.5123.5326.6423.04
Price/Sales ratio
0.790.891.041.821.791.952.292.552.521.82
Price/Book Value ratio
2.723.224.1225.5739.27-112.87-81.21-228.0667.2825.57
Price/Cash Flow ratio
10.2913.2911.0917.2317.3916.2518.4423.3419.5917.23
Price/Free Cash Flow ratio
12.6917.4613.5820.5220.8520.0022.9127.6123.4620.52
Price/Earnings Growth ratio
1.100.660.831.451.190.574.310.78-26.481.19
Dividend Yield
2.88%2.57%2.21%1.87%2.00%2.21%2.35%1.80%2.29%1.87%
Profitability Indicator Ratios
Gross Profit Margin
33.86%34.27%34.46%34.19%34.15%34.34%34.08%33.62%33.05%34.15%
Operating Profit Margin
7.25%8.58%9.46%13.30%14.19%14.35%14.37%15.24%13.69%13.30%
Pretax Profit Margin
6.01%7.75%8.61%12.45%13.20%13.45%13.35%14.38%12.42%13.20%
Net Profit Margin
4.02%4.90%5.51%7.91%8.41%10.27%10.19%10.87%9.45%7.91%
Effective Tax Rate
34.20%36.69%36.00%36.40%36.29%23.59%23.60%24.40%23.92%36.29%
Return on Assets
6.50%8.31%9.58%16.47%18.51%25.27%21.94%22.86%15.02%18.51%
Return On Equity
13.72%17.67%21.69%110.97%183.63%-592.17%-360.78%-968.92%447.13%110.97%
Return on Capital Employed
15.74%19.46%21.38%43.53%46.56%56.91%48.21%53.35%31.05%46.56%
Liquidity Ratios
Current Ratio
1.341.331.54N/AN/AN/AN/AN/A1.13N/A
Quick Ratio
0.230.160.340.330.360.270.280.240.310.36
Cash ratio
0.130.050.210.140.170.100.110.080.050.17
Days of Sales Outstanding
5.315.826.457.797.826.536.978.2713.657.79
Days of Inventory outstanding
84.9686.7781.6973.9973.5471.5473.0080.2884.2773.99
Operating Cycle
90.2892.5988.1481.7881.3778.0779.9788.5697.9281.78
Days of Payables Outstanding
40.5538.5238.4241.1341.0239.8439.1248.9747.6241.13
Cash Conversion Cycle
49.7254.0749.7240.6540.3438.2340.8539.5850.2940.65
Debt Ratios
Debt Ratio
0.520.520.550.490.540.660.600.520.570.49
Debt Equity Ratio
1.101.121.263.355.44-15.54-10.02-22.339.653.35
Long-term Debt to Capitalization
0.300.310.370.760.831.071.121.050.890.76
Total Debt to Capitalization
0.330.340.370.770.841.061.111.040.900.77
Interest Coverage Ratio
7.1011.0110.99N/AN/AN/AN/AN/A9.64N/A
Cash Flow to Debt Ratio
0.520.470.610.440.410.440.430.430.350.41
Company Equity Multiplier
2.102.122.266.739.91-23.43-16.44-42.3716.816.73
Cash Flow Ratios
Operating Cash Flow / Sales Ratio
0.070.060.090.100.100.120.120.100.120.10
Free Cash Flow / Operating Cash Flow Ratio
0.810.760.810.830.830.810.800.840.830.83
Cash Flow Coverage Ratio
0.520.470.610.440.410.440.430.430.350.41
Short Term Coverage Ratio
5.024.40221.721.957.815.443.763.843.437.81
Dividend Payout Ratio
57.30%47.00%42.02%43.24%42.77%42.29%52.99%42.50%60.04%43.24%