Stock Analysis on Net

Home Depot Inc. (NYSE:HD)

Price to FCFE (P/FCFE)

Microsoft Excel

Free Cash Flow to Equity (FCFE)

Home Depot Inc., FCFE 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
Capital expenditures (3,226) (3,119) (2,566) (2,463) (2,678) (2,442)
Proceeds from (repayments of) short-term debt, net (1,035) 1,035 (974) (365) (220)
Proceeds from long-term debt, net of discounts 1,995 6,942 2,979 7,933 3,420 3,466
Repayments of long-term debt (1,271) (2,491) (1,532) (2,872) (1,070) (1,209)
Free cash flow to equity (FCFE) 18,670 14,912 16,487 20,463 13,030 12,633

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
FCFE Free cash flow to equity is the cash flow available to Home Depot Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Home Depot Inc. FCFE decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Price to FCFE Ratio, Current

Home Depot Inc., current P/FCFE calculation, comparison to benchmarks

Microsoft Excel
No. shares of common stock outstanding 991,015,773
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 18,670
FCFE per share 18.84
Current share price (P) 383.60
Valuation Ratio
P/FCFE 20.36
Benchmarks
P/FCFE, Competitors1
Amazon.com Inc. 88.36
Lowe’s Cos. Inc. 18.09
TJX Cos. Inc. 44.00
P/FCFE, Sector
Consumer Discretionary Distribution & Retail 45.89
P/FCFE, Industry
Consumer Discretionary 33.51

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

1 Click competitor name to see calculations.

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


Price to FCFE Ratio, Historical

Home Depot Inc., historical P/FCFE calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2024 Jan 29, 2023 Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019
No. shares of common stock outstanding1 991,015,773 1,014,955,506 1,033,349,933 1,077,069,383 1,074,741,592 1,103,903,507
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 18,670 14,912 16,487 20,463 13,030 12,633
FCFE per share3 18.84 14.69 15.95 19.00 12.12 11.44
Share price1, 4 378.99 287.97 317.05 292.75 181.76 190.06
Valuation Ratio
P/FCFE5 20.12 19.60 19.87 15.41 14.99 16.61
Benchmarks
P/FCFE, Competitors6
Amazon.com Inc. 84.16 240.95 55.66 63.35
Lowe’s Cos. Inc. 18.03 7.08 13.55 12.28 8.69 20.45
TJX Cos. Inc. 33.59 10.55 19.71 21.79
P/FCFE, Sector
Consumer Discretionary Distribution & Retail 41.58 51.89 59.10 38.09 38.19
P/FCFE, Industry
Consumer Discretionary 32.05 38.34 85.76 30.50 28.80

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 Data adjusted for splits and stock dividends.

2 See details »

3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 18,670,000,000 ÷ 991,015,773 = 18.84

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

5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 378.99 ÷ 18.84 = 20.12

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Home Depot Inc. P/FCFE ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.