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: 131.0×

P/S (TTM)

—

Sector avg: 6.4×

Market Cap

$306.92B

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 $308.30 —
AMZN $254.76 35.5×
TSLA $362.44 335.6×
NKE $37.17 21.9×

Is the Multiple Justified?

October 11, 2026

The Home Depot Inc. is currently reporting negative TTM earnings, rendering a P/E multiple inapplicable. The company's performance is significantly influenced by the challenging housing market and cautious consumer spending. While second-quarter sales improved as customers focused on smaller projects, with revenue increasing to $47.86 billion, big-ticket discretionary projects remain subdued due to high interest rates and financing concerns. Housing affordability and historically low housing turnover continue to pressure larger home improvement initiatives. Home Depot's Pro business and strengthening digital sales, which saw double-digit growth, provide some resilience. However, consumers are prioritizing essential maintenance over elective renovations, leading to negative free cash flow growth year-over-year. The company has reaffirmed its fiscal 2026 sales growth guidance, indicating an expectation to navigate these headwinds.

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 AMZN TSLA