Highly Regarded

Is The Home Depot Inc. (HD) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Consumer Discretionary sector peers in our coverage

Insufficient Data TTM fundamentals · sector averages from covered peers

We don’t have enough peer data to compute a reliable sector comparison for HD right now.

HD has negative trailing-twelve-month earnings, so a P/E ratio isn't meaningful — we compare on price-to-sales instead.

The Numbers

P/E (TTM)

—

Sector avg: 133.3×

P/S (TTM)

—

Sector avg: 6.6×

Market Cap

$326.57B

EPS (TTM): —

Revenue (TTM)

—

Net income: —

Consumer Discretionary Peer Comparison

How HD's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
HD This page $328.04 —
AMZN $259.85 36.2×
TSLA $367.81 340.6×
NKE $39.07 23.0×

Is the Multiple Justified?

August 30, 2026

The Home Depot Inc. currently reports negative TTM earnings, rendering its P/E ratio not applicable. This indicates that the company has incurred a net loss over the past twelve months. As a key player in the consumer discretionary sector, Home Depot's performance is highly sensitive to macroeconomic conditions, consumer spending on home improvement projects, and the health of the housing market. The negative earnings suggest that the company has faced significant operational challenges, increased costs, or a downturn in demand within its core markets during this period. Investors would typically evaluate such a company based on other metrics, such as its price-to-sales ratio, while closely monitoring its efforts to return to profitability.

Sources

Frequently Asked Questions

Is HD overvalued or undervalued?
We don't have enough peer data to compute a sector comparison for HD right now.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing HD with its own Consumer Discretionary peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Consumer Discretionary names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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Same question, Consumer Discretionary peers

NKE TSLA AMZN