Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Home Depot Inc., FCFE calculation
US$ in millions
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).
The financial information reveals fluctuating trends in both net cash provided by operating activities and free cash flow to equity (FCFE) over the observed period. While operating cash flow demonstrates variability, FCFE exhibits a more pronounced pattern of initial decline followed by recovery and subsequent decrease.
- Net Cash from Operations
- Net cash provided by operating activities decreased from US$18,839 million in 2021 to US$16,571 million in 2022, and further declined to US$14,615 million in 2023. A significant increase was then observed in 2024, reaching US$21,172 million. This upward momentum continued into 2025 with a value of US$19,810 million, before decreasing again to US$16,325 million in 2026.
- Free Cash Flow to Equity (FCFE)
- FCFE followed a similar, though more dramatic, trajectory. Starting at US$20,463 million in 2021, it decreased to US$16,487 million in 2022 and US$14,912 million in 2023. A recovery was noted in 2024, with FCFE rising to US$18,670 million. This was followed by a substantial increase in 2025, reaching US$25,115 million, representing the highest value in the observed period. However, FCFE experienced a considerable decline in 2026, falling to US$13,915 million.
The correlation between net cash from operations and FCFE is apparent, as fluctuations in operating cash flow generally correspond with changes in FCFE. The substantial increase in FCFE in 2025, exceeding the increase in operating cash flow, suggests potential influences from financing activities or other non-operating factors. The decline in both metrics in 2026 warrants further investigation to determine the underlying causes and potential implications for future financial performance.
- Overall Trend
- The period began with strong FCFE, experienced a two-year decline, followed by a two-year recovery culminating in a peak in 2025, and then concluded with a significant decrease in 2026. This pattern indicates considerable volatility in the company’s ability to generate cash available to equity holders.
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Price to FCFE Ratio, Current
Home Depot Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 996,011,466 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 13,915) |
| FCFE per share | 13.97 |
| Current share price (P) | 330.90 |
| Valuation Ratio | |
| P/FCFE | 23.69 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Amazon.com Inc. | 106.49 |
| Lowe’s Cos. Inc. | 10.90 |
| TJX Cos. Inc. | 41.40 |
| P/FCFE, Sector | |
| Consumer Discretionary Distribution & Retail | 50.14 |
| P/FCFE, Industry | |
| Consumer Discretionary | 44.33 |
Based on: 10-K (reporting date: 2026-02-01).
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
| Feb 1, 2026 | Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 996,011,466 | 994,032,168 | 991,015,773 | 1,014,955,506 | 1,033,349,933 | 1,077,069,383 | |
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in millions)2 | 13,915) | 25,115) | 18,670) | 14,912) | 16,487) | 20,463) | |
| FCFE per share3 | 13.97 | 25.27 | 18.84 | 14.69 | 15.95 | 19.00 | |
| Share price1, 4 | 330.93 | 351.15 | 378.99 | 287.97 | 317.05 | 292.75 | |
| Valuation Ratio | |||||||
| P/FCFE5 | 23.69 | 13.90 | 20.12 | 19.60 | 19.87 | 15.41 | |
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| Amazon.com Inc. | — | 106.58 | 89.69 | 84.16 | 240.95 | — | |
| Lowe’s Cos. Inc. | 10.90 | 18.22 | 18.03 | 7.08 | 13.55 | 12.28 | |
| TJX Cos. Inc. | — | 33.24 | 28.74 | 33.59 | — | 10.55 | |
| P/FCFE, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 49.90 | 53.08 | 41.58 | 51.89 | 59.10 | |
| P/FCFE, Industry | |||||||
| Consumer Discretionary | — | 106.35 | 39.73 | 30.88 | 36.44 | 83.50 | |
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).
1 Data adjusted for splits and stock dividends.
3 2026 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 13,915,000,000 ÷ 996,011,466 = 13.97
4 Closing price as at the filing date of Home Depot Inc. Annual Report.
5 2026 Calculation
P/FCFE = Share price ÷ FCFE per share
= 330.93 ÷ 13.97 = 23.69
6 Click competitor name to see calculations.
The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibits fluctuations over the observed period. Initially, the ratio increased from 15.41 in 2021 to 19.87 in 2022, before stabilizing around 19.60 and 20.12 in 2023 and 2024 respectively. A notable decrease to 13.90 is then observed in 2025, followed by an increase to 23.69 in 2026.
- Share Price
- The share price generally increased from 292.75 in 2021 to 378.99 in 2024, representing a significant upward trend. However, the price experienced a decline in subsequent years, falling to 351.15 in 2025 and further to 330.93 in 2026.
- FCFE per Share
- FCFE per share decreased from 19.00 in 2021 to 14.69 in 2023, indicating a contraction in free cash flow available to equity holders. A recovery is then seen in 2024, with FCFE per share rising to 18.84. This upward trend continues into 2025, reaching 25.27, before experiencing a substantial decline to 13.97 in 2026.
- P/FCFE Ratio – Overall Trend
- The P/FCFE ratio’s movement appears to be influenced by the interplay between share price and FCFE per share. The initial increase in the ratio coincided with a rising share price and a decreasing FCFE per share. The subsequent decrease in 2025 is largely attributable to the significant increase in FCFE per share, while the increase in 2026 is driven by a decrease in FCFE per share despite a slight decline in share price.
The volatility in FCFE per share, particularly the sharp decline in 2026, warrants further investigation. The fluctuations in the P/FCFE ratio suggest a dynamic relationship between market valuation and the cash flow available to equity holders, and the observed trends may reflect changing investor sentiment or underlying business conditions.
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