Home Depot operates as a home improvement retailer, selling various building materials, home improvement products, and lawn and garden products, as well as provide installation, home maintenance, and professional service programs to do-it-yourself, do-it-for-me, and professional customers. The company was founded in 1978 and is based in Atlanta, Georgia.
HD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for HD, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Home Depot Inc ranked in the 34th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Home Depot Inc, consider:
HD's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 37.91% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Cyclical), Home Depot Inc has a reliance on debt greater than just 13.38% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Home Depot Inc? See ATR, DLX, ROST, BFAM, and RELX.