Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Home Depot Inc. (NYSE:HD)

Enterprise Value to FCFF (EV/FCFF)

Intermediate level

Free Cash Flow to The Firm (FCFF)

Home Depot Inc., FCFF calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Jan 31, 2021 Feb 2, 2020 Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Net earnings 12,866  11,242  11,121  8,630  7,957  7,009 
Net noncash charges 2,829  2,547  2,681  2,335  2,240  1,963 
Changes in assets and liabilities, net of acquisition effects 3,144  (66) (764) 1,066  (414) 401 
Net cash provided by operating activities 18,839  13,723  13,038  12,031  9,783  9,373 
Cash paid for interest, net of interest capitalized, net of tax1 941  850  791  624  589  556 
Capital expenditures (2,463) (2,678) (2,442) (1,897) (1,621) (1,503)
Non-cash capital expenditures (274) (136) (248) (150) (179) (165)
Free cash flow to the firm (FCFF) 17,043  11,759  11,139  10,608  8,572  8,261 

Based on: 10-K (filing date: 2021-03-24), 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24).

1 See details »

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Home Depot Inc.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Home Depot Inc.’s FCFF increased from 2019 to 2020 and from 2020 to 2021.

Interest Paid, Net of Tax

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

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Jan 31, 2021 Feb 2, 2020 Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Effective Income Tax Rate (EITR)
EITR1 24.20% 23.60% 23.60% 37.00% 36.30% 36.40%
Interest Paid, Net of Tax
Cash paid for interest, net of interest capitalized, before tax 1,241  1,112  1,035  991  924  874 
Less: Cash paid for interest, net of interest capitalized, tax2 300  262  244  367  335  318 
Cash paid for interest, net of interest capitalized, net of tax 941  850  791  624  589  556 

Based on: 10-K (filing date: 2021-03-24), 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24).

1 See details »

2 2021 Calculation
Cash paid for interest, net of interest capitalized, tax = Cash paid for interest, net of interest capitalized × EITR
= 1,241 × 24.20% = 300

Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 351,096 
Free cash flow to the firm (FCFF) 17,043 
Valuation Ratio
EV/FCFF 20.60
Benchmarks
EV/FCFF, Competitors1
Amazon.com Inc. 83.52
Booking Holdings Inc. —
Lowe’s Cos. Inc. 15.05
Target Corp. 14.36
TJX Cos. Inc. 17.50
EV/FCFF, Sector
Retailing 58.94
EV/FCFF, Industry
Consumer Discretionary 61.23

Based on: 10-K (filing date: 2021-03-24).

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 LibreOffice Calc
Jan 31, 2021 Feb 2, 2020 Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 344,655  224,695  237,232  226,291  199,083  182,559 
Free cash flow to the firm (FCFF)2 17,043  11,759  11,139  10,608  8,572  8,261 
Valuation Ratio
EV/FCFF3 20.22 19.11 21.30 21.33 23.23 22.10
Benchmarks
EV/FCFF, Competitors4
Amazon.com Inc. — 79.17 74.57 80.88 — 89.58
Booking Holdings Inc. — — 15.02 17.37 20.89 22.12
Lowe’s Cos. Inc. 14.88 20.95 18.88 19.78 17.63 20.49
Target Corp. 11.33 14.93 17.80 10.10 9.54 14.42
TJX Cos. Inc. 18.30 19.08 21.16 25.64 18.87 24.50
EV/FCFF, Sector
Retailing — 50.28 37.59 35.49 49.06 31.93
EV/FCFF, Industry
Consumer Discretionary — 57.54 36.72 34.16 75.99 62.05

Based on: 10-K (filing date: 2021-03-24), 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24).

1 See details »

2 See details »

3 2021 Calculation
EV/FCFF = EV ÷ FCFF
= 344,655 ÷ 17,043 = 20.22

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.’s EV/FCFF ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level.