Stock Analysis on Net

Home Depot Inc. (NYSE:HD)

$24.99

Price to Sales (P/S)
since 2005

Microsoft Excel

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Calculation

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

Microsoft Excel

Based on: 10-K (reporting date: 2026-02-01), 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.


The price-to-sales (P/S) ratio, calculated from the provided share price and sales per share figures, exhibits considerable fluctuation over the analyzed period from 2005 to 2026. Initially, the ratio remained relatively stable around 1.11 in 2005 and 2006. A subsequent decline is observed, reaching a low of 0.59 in 2009, coinciding with a period of lower share prices.

Initial Stability and Decline (2005-2009)
From 2005 to 2009, the P/S ratio experienced a notable decrease. This suggests that investor valuation of the company’s sales decreased relative to its share price during this timeframe. The lowest point, 0.59 in 2009, indicates a potentially undervalued position based on sales, or potentially reflects broader market conditions impacting valuation.

Following 2009, the P/S ratio demonstrated a recovery, increasing to 1.08 by 2012. This upward movement suggests improving investor confidence or a reassessment of the company’s growth prospects. The ratio continued to climb, peaking at 2.01 in 2018, indicating a significant increase in the market’s willingness to pay for each dollar of sales.

Recovery and Peak (2009-2018)
The period between 2009 and 2018 shows a clear recovery and subsequent peak in the P/S ratio. This could be attributed to improved financial performance, successful strategic initiatives, or favorable market conditions. The ratio exceeding 2.0 in 2018 suggests a premium valuation relative to sales.

From 2018 to 2022, the P/S ratio experienced volatility, decreasing to 1.86 in 2022. A subsequent increase to 2.46 in 2023 was followed by a decrease to 2.00 in 2024 and a further decline to 1.94 in the projected value for 2026. This recent fluctuation suggests increased sensitivity to market conditions or company-specific factors impacting investor sentiment.

Recent Volatility (2018-2026)
The more recent trend reveals increased volatility in the P/S ratio. The peak in 2018 was followed by a period of fluctuation, with a notable increase in 2023 and subsequent declines. This suggests a more dynamic valuation environment, potentially influenced by factors such as economic uncertainty, competitive pressures, or changes in growth expectations. The projected value for 2026 indicates a potential continuation of this trend.

Overall, the P/S ratio demonstrates a cyclical pattern over the analyzed period, with periods of decline, recovery, and peak valuation. The ratio’s recent volatility warrants further investigation to understand the underlying drivers and potential implications for future performance.


Comparison to Competitors


Comparison to Sector (Consumer Discretionary Distribution & Retail)

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

Microsoft Excel

Based on: 10-K (reporting date: 2026-02-01), 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)