Home Depot Inc. (HD) | Valuation Ratios

Current Valuation Ratios

Home Depot Inc., current price multiples

	Home Depot Inc.	Consumer Services
Selected Financial Data
Current share price (P)	$ 78.99
No. shares of common stock outstanding	1,485,517,485
Growth rate (g)	9.87%

Earnings per share (EPS)	$ 3.05
Next year expected EPS	$ 3.35
Operating profit per share	$ 5.23
Sales per share	$ 50.32
Book value per share (BVPS)	$ 11.97
Ratios (Price Multiples)
Price to earnings (P/E)	25.87	19.24
Price to next year expected earnings	23.55	17.50
Price-earnings-growth (PEG)	2.62	1.94
Price to operating profit (P/OP)	15.11	11.36
Price to sales (P/S)	1.57	0.94
Price to book value (P/BV)	6.60	3.35

If company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.

Otherwise, if company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.

Home Depot Inc., historical price multiples

	Feb 3, 2013	Jan 29, 2012	Jan 30, 2011	Jan 31, 2010	Feb 1, 2009	Feb 3, 2008
Price to earnings (P/E)	22.86	19.49	18.15	20.76	18.59	11.24
Price to operating profit (P/OP)	13.35	11.36	10.38	11.50	9.64	6.82
Price to sales (P/S)	1.39	1.08	0.89	0.83	0.59	0.64
Price to book value (P/BV)	5.83	4.23	3.21	2.85	2.36	2.79

Ratio	Description	The company
P/E ratio	The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings.	Home Depot Inc.'s P/E ratio increased from 2011 to 2012 and from 2012 to 2013.
P/OP ratio	Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit.	Home Depot Inc.'s P/OP ratio increased from 2011 to 2012 and from 2012 to 2013.
P/S ratio	An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative.	Home Depot Inc.'s P/S ratio increased from 2011 to 2012 and from 2012 to 2013.
P/BV ratio	The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return.	Home Depot Inc.'s P/BV ratio increased from 2011 to 2012 and from 2012 to 2013.

	Feb 3, 2013	Jan 29, 2012	Jan 30, 2011	Jan 31, 2010	Feb 1, 2009	Feb 3, 2008
No. shares of common stock outstanding¹	1,485,517,485	1,523,263,533	1,622,070,458	1,693,341,736	1,696,279,008	1,690,034,627
Selected Financial Data (USD $)
Net earnings (in millions)	4,535	3,883	3,338	2,661	2,260	4,395
Earnings per share (EPS)	3.05	2.55	2.06	1.57	1.33	2.60
Share price^1, 2	69.78	49.68	37.36	32.62	24.77	29.22
P/E Ratio, Comparison to Industry
Home Depot Inc.	22.86	19.49	18.15	20.76	18.59	11.24
Industry, Consumer Services	–	15.58	13.92	15.97	15.05	21.73

¹ Data adjusted for splits and stock dividends.
² Close price on the filing date of Home Depot Inc.'s Annual Report.

Ratio	Description	The company
P/E ratio	The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings.	Home Depot Inc.'s P/E ratio increased from 2011 to 2012 and from 2012 to 2013.

	Feb 3, 2013	Jan 29, 2012	Jan 30, 2011	Jan 31, 2010	Feb 1, 2009	Feb 3, 2008
No. shares of common stock outstanding¹	1,485,517,485	1,523,263,533	1,622,070,458	1,693,341,736	1,696,279,008	1,690,034,627
Selected Financial Data (USD $)
Operating income (in millions)	7,766	6,661	5,839	4,803	4,359	7,242
Operating profit per share	5.23	4.37	3.60	2.84	2.57	4.29
Share price^1, 2	69.78	49.68	37.36	32.62	24.77	29.22
P/OP Ratio, Comparison to Industry
Home Depot Inc.	13.35	11.36	10.38	11.50	9.64	6.82
Industry, Consumer Services	–	9.20	8.44	9.36	8.85	11.04

¹ Data adjusted for splits and stock dividends.
² Close price on the filing date of Home Depot Inc.'s Annual Report.

Ratio	Description	The company
P/OP ratio	Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit.	Home Depot Inc.'s P/OP ratio increased from 2011 to 2012 and from 2012 to 2013.

	Feb 3, 2013	Jan 29, 2012	Jan 30, 2011	Jan 31, 2010	Feb 1, 2009	Feb 3, 2008
No. shares of common stock outstanding¹	1,485,517,485	1,523,263,533	1,622,070,458	1,693,341,736	1,696,279,008	1,690,034,627
Selected Financial Data (USD $)
Net sales (in millions)	74,754	70,395	67,997	66,176	71,288	77,349
Sales per share	50.32	46.21	41.92	39.08	42.03	45.77
Share price^1, 2	69.78	49.68	37.36	32.62	24.77	29.22
P/S Ratio, Comparison to Industry
Home Depot Inc.	1.39	1.08	0.89	0.83	0.59	0.64
Industry, Consumer Services	–	0.76	0.71	0.74	0.66	0.64

¹ Data adjusted for splits and stock dividends.
² Close price on the filing date of Home Depot Inc.'s Annual Report.

Ratio	Description	The company
P/S ratio	An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative.	Home Depot Inc.'s P/S ratio increased from 2011 to 2012 and from 2012 to 2013.

	Feb 3, 2013	Jan 29, 2012	Jan 30, 2011	Jan 31, 2010	Feb 1, 2009	Feb 3, 2008
No. shares of common stock outstanding¹	1,485,517,485	1,523,263,533	1,622,070,458	1,693,341,736	1,696,279,008	1,690,034,627
Selected Financial Data (USD $)
Stockholders’ equity (in millions)	17,777	17,898	18,889	19,393	17,777	17,714
Book value per share (BVPS)	11.97	11.75	11.64	11.45	10.48	10.48
Share price^1, 2	69.78	49.68	37.36	32.62	24.77	29.22
P/BV Ratio, Comparison to Industry
Home Depot Inc.	5.83	4.23	3.21	2.85	2.36	2.79
Industry, Consumer Services	–	2.72	2.45	2.39	2.26	2.13

¹ Data adjusted for splits and stock dividends.
² Close price on the filing date of Home Depot Inc.'s Annual Report.

Ratio	Description	The company
P/BV ratio	The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return.	Home Depot Inc.'s P/BV ratio increased from 2011 to 2012 and from 2012 to 2013.