Stock Analysis on Net

Home Depot Inc. (NYSE:HD)

$24.99

Price to Earnings (P/E)
since 2005

Microsoft Excel

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Calculation

Home Depot Inc., P/E, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31), 10-K (reporting date: 2015-02-01), 10-K (reporting date: 2014-02-02), 10-K (reporting date: 2013-02-03), 10-K (reporting date: 2012-01-29), 10-K (reporting date: 2011-01-30), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-02-01), 10-K (reporting date: 2008-02-03), 10-K (reporting date: 2007-01-28), 10-K (reporting date: 2006-01-29), 10-K (reporting date: 2005-01-30).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of Home Depot Inc. Annual Report.

Share Price Trend
The share price exhibited a fluctuating yet overall upward trajectory over the period analyzed. Starting at $37.74 in April 2005, the price experienced an initial decline to $24.77 by April 2009. Following this trough, a steady increase occurred, peaking at $317.05 in March 2022. Noteworthy is a significant spike between March 2020 and March 2022, where the price rose from $181.76 to $317.05. After this peak, the price showed some volatility, declining to $287.97 by March 2023, before rebounding to $378.99 in March 2024 and slightly retreating to $351.15 by March 2025.
Earnings Per Share (EPS) Evolution
EPS demonstrated a gradual and substantial growth over the analyzed timeframe, increasing from $2.32 in 2005 to a peak of $16.85 in March 2023. There was a notable decline in EPS in 2009, declining to $1.33, coinciding with broader economic challenges. From that point onward, EPS improved steadily, reaching a high of $15.9 by March 2022, closely mirrored by subsequent values. A mild decrease is observed in the final years, with EPS declining to $14.89 in March 2025 after peaking.
Price to Earnings (P/E) Ratio Analysis
The P/E ratio showed variability throughout the period without a clear linear trend. Early years featured P/E ratios ranging from around 11.24 to 20.76, with a peak in 2010 at 20.76 and a low in 2008 at 11.24. Subsequent years saw a general clustering in the 18 to 24 range, with some spikes reaching as high as 24.8 in March 2024. The ratio indicates periods of relative market optimism or valuation stretching, particularly in later years despite fluctuations in share price and EPS.
Correlations and Insights
Share price increases generally align with rising EPS, reflecting improved profitability and investor confidence. However, periods of share price declines amidst rising EPS in recent years suggest external factors or market sentiment influences. The P/E ratio’s volatility indicates changing market perceptions of value, with higher ratios potentially signaling growth expectations or overvaluation phases.

Comparison to Competitors


Comparison to Sector (Consumer Discretionary Distribution & Retail)

Home Depot Inc., P/E, long-term trends, comparison to sector (consumer discretionary distribution & retail)

Microsoft Excel

Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31), 10-K (reporting date: 2015-02-01), 10-K (reporting date: 2014-02-02), 10-K (reporting date: 2013-02-03), 10-K (reporting date: 2012-01-29), 10-K (reporting date: 2011-01-30), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-02-01), 10-K (reporting date: 2008-02-03), 10-K (reporting date: 2007-01-28), 10-K (reporting date: 2006-01-29), 10-K (reporting date: 2005-01-30).


Comparison to Industry (Consumer Discretionary)