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The Home Depot (NEOE:HD) Shiller PE Ratio : 28.70 (As of May. 16, 2024)


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What is The Home Depot Shiller PE Ratio?

As of today (2024-05-16), The Home Depot's current share price is C$22.67. The Home Depot's E10 for the quarter that ended in Apr. 2024 was C$0.79. The Home Depot's Shiller PE Ratio for today is 28.70.

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

NEOE:HD' s Shiller PE Ratio Range Over the Past 10 Years
Min: 24.31   Med: 39.07   Max: 53.27
Current: 28.86

During the past years, The Home Depot's highest Shiller PE Ratio was 53.27. The lowest was 24.31. And the median was 39.07.

NEOE:HD's Shiller PE Ratio is ranked worse than
72.27% of 559 companies
in the Retail - Cyclical industry
Industry Median: 17.38 vs NEOE:HD: 28.86

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

The Home Depot's adjusted earnings per share data for the three months ended in Apr. 2024 was C$4.964. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is C$0.79 for the trailing ten years ended in Apr. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


The Home Depot Shiller PE Ratio Historical Data

The historical data trend for The Home Depot's Shiller PE 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 Shiller PE Ratio Chart

The Home Depot Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 38.94 39.25 42.17 30.70 29.79

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
Shiller PE 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 27.37 29.37 24.34 29.79 27.66

Competitive Comparison of The Home Depot's Shiller PE Ratio

For the Home Improvement Retail subindustry, The Home Depot's Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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 Shiller PE Ratio Distribution in the Retail - Cyclical Industry

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

* The bar in red indicates where The Home Depot's Shiller PE Ratio falls into.



The Home Depot Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

The Home Depot's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=22.67/0.79
=28.70

* 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 E10 for the quarter that ended in Apr. 2024 is calculated as:

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

Adj_EPS=Earnings per Share (Diluted)/CPI of Apr. 2024 (Change)*Current CPI (Apr. 2024)
=4.964/131.7762*131.7762
=4.964

Current CPI (Apr. 2024) = 131.7762.

The Home Depot Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201407 1.632 100.520 2.139
201410 1.289 100.176 1.696
201501 1.273 98.604 1.701
201504 1.493 99.824 1.971
201507 2.225 100.691 2.912
201510 1.765 100.346 2.318
201601 1.662 99.957 2.191
201604 1.846 100.947 2.410
201607 2.571 101.524 3.337
201610 2.120 101.988 2.739
201701 1.898 102.456 2.441
201704 2.244 103.167 2.866
201707 2.855 103.278 3.643
201710 2.320 104.070 2.938
201801 1.889 104.578 2.380
201804 2.648 105.708 3.301
201807 4.006 106.324 4.965
201810 3.264 106.695 4.031
201901 2.780 106.200 3.450
201904 3.037 107.818 3.712
201907 4.154 108.250 5.057
201910 3.337 108.577 4.050
202001 2.984 108.841 3.613
202004 2.922 108.173 3.560
202007 5.426 109.318 6.541
202010 4.203 109.861 5.041
202101 3.372 110.364 4.026
202104 4.823 112.673 5.641
202107 5.676 115.183 6.494
202110 4.874 116.696 5.504
202201 4.052 118.619 4.501
202204 5.165 121.978 5.580
202207 6.533 125.002 6.887
202210 5.804 125.734 6.083
202301 4.429 126.223 4.624
202304 5.151 127.992 5.303
202307 6.143 128.974 6.276
202310 5.224 129.810 5.303
202401 3.785 130.124 3.833
202404 4.964 131.776 4.964

Add all the adjusted EPS together and divide 10 will get our E10.

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  (NEOE:HD) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


The Home Depot Shiller PE Ratio Related Terms

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


The Home Depot (NEOE: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.

The Home Depot (NEOE:HD) Headlines