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The Home Depot (BUE:HD) Cyclically Adjusted PS Ratio : 2.89 (As of Jun. 05, 2024)


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What is The Home Depot Cyclically Adjusted PS Ratio?

As of today (2024-06-05), The Home Depot's current share price is ARS12497.50. The Home Depot's Cyclically Adjusted Revenue per Share for the quarter that ended in Apr. 2024 was ARS4,324.86. The Home Depot's Cyclically Adjusted PS Ratio for today is 2.89.

The historical rank and industry rank for The Home Depot's Cyclically Adjusted PS Ratio or its related term are showing as below:

BUE:HD' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 1.62   Med: 2.77   Max: 4.48
Current: 2.59

During the past years, The Home Depot's highest Cyclically Adjusted PS Ratio was 4.48. The lowest was 1.62. And the median was 2.77.

BUE:HD's Cyclically Adjusted PS Ratio is ranked worse than
89.45% of 768 companies
in the Retail - Cyclical industry
Industry Median: 0.49 vs BUE:HD: 2.59

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

The Home Depot's adjusted revenue per share data for the three months ended in Apr. 2024 was ARS125,919.636. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is ARS4,324.86 for the trailing ten years ended in Apr. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


The Home Depot Cyclically Adjusted PS Ratio Historical Data

The historical data trend for The Home Depot's Cyclically Adjusted PS Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Home Depot Cyclically Adjusted PS Ratio Chart

The Home Depot Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.13 3.33 3.81 2.90 2.86

The Home Depot Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24
Cyclically Adjusted PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.61 2.82 2.35 2.86 2.64

Competitive Comparison of The Home Depot's Cyclically Adjusted PS Ratio

For the Home Improvement Retail subindustry, The Home Depot's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Home Depot's Cyclically Adjusted PS Ratio Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where The Home Depot's Cyclically Adjusted PS Ratio falls into.



The Home Depot Cyclically Adjusted PS Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio.

The Home Depot's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=12497.50/4324.86
=2.89

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The Home Depot's Cyclically Adjusted Revenue per Share for the quarter that ended in Apr. 2024 is calculated as:

For example, The Home Depot's adjusted Revenue per Share data for the three months ended in Apr. 2024 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Apr. 2024 (Change)*Current CPI (Apr. 2024)
=125919.636/131.7762*131.7762
=125,919.636

Current CPI (Apr. 2024) = 131.7762.

The Home Depot Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201407 574.421 100.520 753.033
201410 521.605 100.176 686.147
201501 503.192 98.604 672.478
201504 570.201 99.824 752.717
201507 707.871 100.691 926.407
201510 654.371 100.346 859.329
201601 918.997 99.957 1,211.535
201604 1,067.487 100.947 1,393.500
201607 1,283.252 101.524 1,665.645
201610 1,156.381 101.988 1,494.132
201701 1,170.144 102.456 1,505.002
201704 1,222.165 103.167 1,561.079
201707 1,683.407 103.278 2,147.925
201710 1,508.381 104.070 1,909.956
201801 1,608.026 104.578 2,026.240
201804 1,732.847 105.708 2,160.177
201807 3,062.738 106.324 3,795.907
201810 3,806.206 106.695 4,700.950
201901 3,552.722 106.200 4,408.326
201904 4,129.366 107.818 5,046.932
201907 4,766.885 108.250 5,802.882
201910 5,732.159 108.577 6,956.926
202001 5,673.936 108.841 6,869.578
202004 6,765.607 108.173 8,241.830
202007 9,965.152 109.318 12,012.440
202010 9,487.141 109.861 11,379.699
202101 10,064.953 110.364 12,017.677
202104 12,809.023 112.673 14,980.748
202107 14,830.357 115.183 16,966.825
202110 13,814.668 116.696 15,599.914
202201 14,065.683 118.619 15,625.807
202204 16,725.172 121.978 18,068.635
202207 21,430.310 125.002 22,591.677
202210 22,389.968 125.734 23,465.853
202301 24,947.523 126.223 26,045.093
202304 26,017.206 127.992 26,786.407
202307 43,934.348 128.974 44,888.799
202310 52,846.846 129.810 53,647.428
202401 113,283.952 130.124 114,721.979
202404 125,919.636 131.776 125,919.636

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


The Home Depot  (BUE:HD) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PS Ratio should give similar results to regular PS Ratio.


The Home Depot Cyclically Adjusted PS Ratio Related Terms

Thank you for viewing the detailed overview of The Home Depot's Cyclically Adjusted PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


The Home Depot (BUE:HD) Business Description

Address
2455 Paces Ferry Road, Atlanta, GA, USA, 30339
Home Depot is the world's largest home improvement specialty retailer, operating more than 2,300 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the United States, Canada, and Mexico. Its stores offer numerous building materials, home improvement products, lawn and garden products, and decor products and provide various services, including home improvement installation services and tool and equipment rentals. The acquisition of distributor Interline Brands in 2015 allowed Home Depot to enter the maintenance, repair, and operations business, which has been expanded through the tie-up with HD Supply (2020). Moreover, the additions of the Company Store brought textile exposure to the lineup, while Redi Carpet added multifamily flooring.