The Home Depot, Inc. (HD)
ValueMarkers Composite Index
10% above intrinsic value ($291)
The Home Depot, Inc. (HD) — VMCI valuation read
The Home Depot, Inc. sits at VMCI 53/100, with the Consumer Cyclical sector median at 50. That 3-point spread is the first thing to note on HD: it tells the reader the composite is favorable before any single ratio is examined, and the mid-cap tier sets the comparison set.
Form 4 disclosures on HD are blank for the trailing 30 days. With the insider channel offline, the EV/EBITDA delta, free-cash-flow trajectory, and the next earnings print do the talking.
**Investor frame.** The Value read on HD: HD trades at 24.0x earnings, 33% above the Consumer Cyclical median of 18.0x, with EV/EBITDA at 13.0x against 12.0x. The Quality read: ROIC of 8.0% trails the Consumer Cyclical median (10.0%) by 2.0pp. The Risk read: net debt to EBITDA of 0.1x leaves covenant headroom, anchoring the bear scenario on a measurable balance-sheet metric.
HD fell 3.1% over the trailing 7 days, with a -0.5% read on a 30-day basis.
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.
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