Stock Analysis on Net

Home Depot Inc. (NYSE:HD)

Enterprise Value to FCFF (EV/FCFF) 

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

Home Depot Inc., FCFF calculation

US$ in millions

Microsoft Excel
12 months ended: Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019
Net earnings 15,143 17,105 16,433 12,866 11,242 11,121
Net noncash charges 3,627 3,341 3,261 2,829 2,547 2,681
Changes in assets and liabilities, net of acquisition effects 2,402 (5,831) (3,123) 3,144 (66) (764)
Net cash provided by operating activities 21,172 14,615 16,571 18,839 13,723 13,038
Cash paid for interest, net of interest capitalized, net of tax1 1,375 1,103 959 941 850 791
Capital expenditures (3,226) (3,119) (2,566) (2,463) (2,678) (2,442)
Non-cash capital expenditures (364) (351) (421) (274) (136) (248)
Free cash flow to the firm (FCFF) 18,957 12,248 14,543 17,043 11,759 11,139

Based on: 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).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Home Depot Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Home Depot Inc. FCFF decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Interest Paid, Net of Tax

Home Depot Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019
Effective Income Tax Rate (EITR)
EITR1 24.00% 23.90% 24.40% 24.20% 23.60% 23.60%
Interest Paid, Net of Tax
Cash paid for interest, net of interest capitalized, before tax 1,809 1,449 1,269 1,241 1,112 1,035
Less: Cash paid for interest, net of interest capitalized, tax2 434 346 310 300 262 244
Cash paid for interest, net of interest capitalized, net of tax 1,375 1,103 959 941 850 791

Based on: 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).

1 See details »

2 2024 Calculation
Cash paid for interest, net of interest capitalized, tax = Cash paid for interest, net of interest capitalized × EITR
= 1,809 × 24.00% = 434


Enterprise Value to FCFF Ratio, Current

Home Depot Inc., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 445,903
Free cash flow to the firm (FCFF) 18,957
Valuation Ratio
EV/FCFF 23.52
Benchmarks
EV/FCFF, Competitors1
Amazon.com Inc. 56.01
Lowe’s Cos. Inc. 26.12
TJX Cos. Inc. 29.66
EV/FCFF, Sector
Consumer Discretionary Distribution & Retail 47.99
EV/FCFF, Industry
Consumer Discretionary 40.87

Based on: 10-K (reporting date: 2024-01-28).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

Home Depot Inc., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 415,936 332,713 365,367 344,655 224,695 237,232
Free cash flow to the firm (FCFF)2 18,957 12,248 14,543 17,043 11,759 11,139
Valuation Ratio
EV/FCFF3 21.94 27.17 25.12 20.22 19.11 21.30
Benchmarks
EV/FCFF, Competitors4
Amazon.com Inc. 45.92 78.83 74.39
Lowe’s Cos. Inc. 24.69 19.56 19.56 14.88 20.95 18.88
TJX Cos. Inc. 24.44 31.93 33.03 18.30 19.08 21.16
EV/FCFF, Sector
Consumer Discretionary Distribution & Retail 38.32 111.04 130.00 51.35 42.44
EV/FCFF, Industry
Consumer Discretionary 32.71 50.20 59.78 45.72 30.57

Based on: 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).

1 See details »

2 See details »

3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 415,936 ÷ 18,957 = 21.94

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Home Depot Inc. EV/FCFF ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.