---
title: Home Depot (HD) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/hd
ticker: HD
as_of: 2026-10-17
sector: Consumer Cyclical
industry: Home Improvement
---
# Home Depot (HD)

Home Depot (HD) closed at $309.63 on Oct 16, 2026, overvalued by 34% vs its model value of $231.88 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $309.63 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $231.88 |
| Price vs model | overvalued by 34% vs model |
| Range of that model | $139.41 – $521.45 |
| Market value | $308.9B |
| P/E (fiscal 2026) | 21.8 |
| Net margin (fiscal 2026) | 8.6% |
| Free cash flow (fiscal 2026) | $12.6B |
| Dividend yield (trailing twelve months) | 3.00% |
| Beta | 1.00 |
| Cost of capital (WACC) | 8.29% |
| Business classification | Dividend Payer (Low/slowing growth (~4% recent), Moderate margins (9% net margin), Pays dividends, Highly cyclical earnings, High leverage (D/E 5.1x)) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Largest companies | #38 | $308.9B | https://sweetvaluelab.com/lists/largest-companies |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 3.00% |
| Dividends per share, last 12 months | $9.29 |
| Dividends / free cash flow (fiscal 2026) | 72.4% |
| Raised | 16 years in a row |
| Growth over 5 years | 7.6% a year |
| Latest payment | $2.33, ex-date Sep 3, 2026, paid Sep 17, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Sep 1, 2021 | $6.45 |
| To Aug 31, 2022 | $7.35 |
| To Aug 30, 2023 | $8.17 |
| To Aug 29, 2024 | $8.84 |
| To Sep 4, 2025 | $9.15 |
| Trailing twelve months (to Sep 3, 2026) | $9.29 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $231.88 | $139.41 | $521.45 |
| DCF · Perpetuity growth · 10y | cross check | $242.64 | $152.11 | $520.96 |
| DCF · EBITDA exit · 5y | cross check | $369.59 | $260.48 | $497.75 |
| DCF · EBITDA exit · 10y | cross check | $351.97 | $239.80 | $500.54 |
| P/E · peers | cross check | $351.02 | $289.69 | $402.25 |
| P/E · own history | cross check | $336.31 | $287.22 | $367.51 |
| PEG | sanity check | $143.06 | $143.06 | $143.06 |
| EV/EBITDA · peers | cross check | $247.95 | $131.14 | $303.65 |
| EV/Revenue · peers | cross check | $333.59 | $174.07 | $503.38 |
| Earnings power value | cross check | $136.41 | $105.69 | $180.71 |
| Dividend discount | cross check | $176.19 | $124.32 | $275.14 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 4 open-market sales ($3.3M); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Sep 20, 2026 | Scardino Kimberly R | SVP-Finance, CAO & Controller | Tax withholding | 81 | $24,298.4 |
| Sep 20, 2026 | Broggi Jordan | EVP-Interconnected Retail | Tax withholding | 130 | $38,997.4 |
| Sep 20, 2026 | BROWN ANGIE | EVP & CIO | Tax withholding | 96 | $28,798.1 |
| Sep 20, 2026 | Deaton John A. | EVP - Supply Chain & Prod. Dev | Tax withholding | 344 | $103,193.1 |
| Sep 20, 2026 | McPhail Richard V | EVP & CFO | Tax withholding | 554 | $166,188.9 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Sep 4, 2026 | S-3ASR | Shelf registration (automatic) | https://www.sec.gov/Archives/edgar/data/354950/000035495026000163/forms-3asrxdepotdirectx2026.htm |
| Aug 25, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/354950/000162828026058715/hd-20260802.htm |
| Aug 21, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers | https://www.sec.gov/Archives/edgar/data/354950/000035495026000148/hd-20260820.htm |
| Aug 18, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/354950/000035495026000145/hd-20260818.htm |
| Aug 12, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers; 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/354950/000035495026000141/hd-20260811.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Stephen Mandel | 2026-06-30 | 2,603,189 | $918.1M |
| Gates | 2026-06-30 | 1,000,000 | $352.7M |
| Thomas Gayner | 2026-06-30 | 922,500 | $325.3M |
| Viking Global | 2026-06-30 | 920,595 | $324.7M |

10 tracked managers in all.

## About

The Home Depot, Inc. operates as a prominent retailer specializing in home renovation and improvement. Through its expansive network of "The Home Depot" stores, it furnishes consumers with an extensive array of goods, including building materials, home enhancement products, lawn and garden supplies, decorative items, and facilities maintenance, repair, and operational (MRO) supplies. In addition to selling products, the company extends professional installation services for key home features like flooring, cabinetry (including makeovers), countertops, furnaces and central air conditioning systems, and window replacements. Customers can also access tool and equipment rental options. Its diverse clientele includes both individual homeowners and a broad spectrum of professional clients, such as renovators, general contractors, maintenance personnel, handymen, property managers, building ser…

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Source: https://sweetvaluelab.com/stocks/hd (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.