Home Depot
HD
#22
Rank
$333.34 B
Marketcap
$327.07
Share price
0.95%
Change (1 day)
-18.32%
Change (1 year)

The Home Depot, Inc is an American home improvement chain based in Atlanta. It operates 2,284 DIY stores (as of April 2018) in North America (USA, Canada, Mexico, Puerto Rico) and claims to be the largest DIY store chain in the world. The company has over 400,000 employees.

The Home Depot also owns home improvement stores and user stores, such as the EXPO Design Center, Landscape Supply Garden Center, and a number of specialized stores.

The company was founded in Atlanta in 1978 by Bernie Marcus and Arthur Blank. It grew rapidly, with annual sales of $1 billion in 1986. In fiscal 2017, sales were $ 100.9 billion.

P/E ratio for Home Depot (HD)

P/E ratio as of December 2022 (TTM): 20.0

According to Home Depot's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 20.0165. At the end of 2021 the company had a P/E ratio of 27.6.

P/E ratio history for Home Depot from 2001 to 2022

PE ratio at the end of each year

Year P/E ratio Change
202127.620.95%
202022.95.72%
201921.615.9%
201818.7-28.74%
201726.221.25%
201621.6-12.17%
201524.63.51%
201423.77.87%
201322.0

P/E ratio for similar companies or competitors

Company P/E ratio P/E ratio differencediff. Country
16.9-15.44%๐Ÿ‡บ๐Ÿ‡ธ USA
3.87-80.68%๐Ÿ‡บ๐Ÿ‡ธ USA
15.3-23.73%๐Ÿ‡บ๐Ÿ‡ธ USA

How to read a P/E ratio?

The Price/Earnings ratio measures the relationship between a company's stock price and its earnings per share. A low but positive P/E ratio stands for a company that is generating high earnings compared to its current valuation and might be undervalued. A company with a high negative (near 0) P/E ratio stands for a company that is generating heavy losses compared to its current valuation.

Companies with a P/E ratio over 30 or a negative one are generaly seen as "growth stocks" meaning that investors typically expect the company to grow or to become profitable in the future.
Companies with a positive P/E ratio bellow 10 are generally seen as "value stocks" meaning that the company is already very profitable and unlikely to strong growth in the future.