Home Depot Inc. (NYSE:HD)

The analysis of the financial ratios over the evaluated quarters reveals notable patterns and fluctuations, reflecting varying market perceptions and operational performance dynamics.

Price to Earnings (P/E) Ratio

The P/E ratio exhibits moderate volatility throughout the periods. Beginning at approximately 24.24, it peaks near 27.73 in late 2025 before retreating toward the mid-20s. A declining trend is observable from mid-2020 through early 2022, reaching a low around 17.09, suggestive of either earnings growth outpacing price appreciation or a market revaluation. Subsequently, the ratio gradually increases, indicating fluctuating investor expectations and valuation multiples. The ratio remains within a range indicative of moderate investor confidence relative to earnings over the entire timeframe.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio follows a broadly similar trajectory to P/E but with generally lower absolute values. From an initial value of 17.14, it declines through early 2022 to a low near 12.16, indicative of improved operating profitability relative to stock price or a reassessment of operating earnings prospects. After this trough, the ratio trends upward and reaches levels around 18.78 by late 2025. The fluctuation suggests variations in operating performance or market valuation benchmarks, with periods of operational strength reflected in decreased ratio values and vice versa.

Price to Sales (P/S) Ratio

This ratio begins at about 2.37 and displays a relatively stable but gently oscillating pattern. A decline to approximately 1.86 in early 2023 corresponds with a period where the P/E and P/OP ratios were also at lower levels, possibly indicating market caution or increased sales relative to price. From that point, P/S gradually rises again to values near 2.61, paralleling the subsequent rise in other valuation metrics. Overall, the P/S ratio's stability suggests consistent market valuation relative to sales despite earnings and operating profit fluctuations.

Price to Book Value (P/BV) Ratio

The P/BV ratio data demonstrate significant irregularity and volatility, with extremely high and inconsistent values ranging from approximately 28.85 to over 1300 at certain points. Such anomalies may indicate data irregularities or reflect episodic accounting or market valuation distortions. The lack of a clear trend and extremely elevated readings suggest limited reliability as a valuation metric in this context. It contrasts notably with more stable valuation ratios, implying that book value may not be a primary driver of market valuation for the analyzed periods.

In summary, valuation ratios tied to earnings and operating profits indicate periods of enhanced profitability and market revaluation, especially from mid-2020 into early 2023, followed by recovery and moderate increases toward late 2025. Price to sales ratio exhibits more stability, reflecting steady revenue valuation. Price to book value shows significant irregularities, limiting its interpretive usefulness. Together, these trends suggest that market valuation heavily weighed earnings and operating outcomes, with sales as a steady reference, while book value appeared less influential or comparably volatile during the analyzed periods.

The data shows the quarterly trends in share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over a period spanning from May 2020 through November 2025.

Share Price

The share price exhibits volatility with an overall upward tendency. Starting at $247.36 in May 2020, it experienced an increase peaking at $408.37 by October 2021. After this peak, the price dropped markedly to $287.92 in May 2022, followed by fluctuations with another high point of $407.54 in August 2025. There are intermittent periods of decline but the general trend indicates resilience and growth potential with substantial variation quarter to quarter.

Earnings Per Share (EPS)

EPS demonstrates a growth trend initially, rising from $10.20 in May 2020 to a peak of $16.85 in January 2023. Post this peak, EPS shows a gradual decrease to $14.65 by November 2025. This indicates that while earnings improved significantly in the early period, recent quarters suggest a slight contraction or leveling off in profitability per share.

Price to Earnings (P/E) Ratio

The P/E ratio fluctuates within a range but without a clear sustained trend. It begins at 24.24 in May 2020, rises to a high of 27.73 in November 2025, with notable troughs such as 17.09 in January 2023. These fluctuations correspond to changes in both share price and EPS. The variability indicates changing investor sentiment or market valuations relative to company earnings over time, reflecting periods of optimism and correction.

Overall, the company experienced strong profit growth in the earlier period followed by a modest declining trend in EPS. Meanwhile, the share price showed considerable volatility but ended higher relative to the starting point. The market valuation, as indicated by the P/E ratio, reflects this dynamic environment with alternating periods of elevated and moderate investor expectations. These patterns suggest careful monitoring is advised, particularly to understand drivers behind the recent downward EPS trend and share price volatility.

The financial data presents multiple quarterly observations for share price, operating profit per share, and the price-to-operating profit ratio over several years. Analysis focuses on identifying trends and important fluctuations within these metrics.

Share Price

The share price exhibits considerable volatility over the analyzed periods. Starting at $247.36, it rises consistently until reaching a peak of $408.37 in late 2021. Following this peak, the share price declines noticeably to a low around $287 in early 2022. Subsequently, the price shows a pattern of partial recovery and further fluctuations, with notable increases in early 2024 up to approximately $407.54, but also intermittent decreases below $350 at other periods. This cyclical behavior suggests reactions to market conditions or company-specific events influencing investor sentiment.

Operating Profit per Share

The operating profit per share demonstrates a generally upward trend initially, beginning at $14.43 and growing steadily to about $23.66 by late 2022. After reaching this peak, the metric stabilizes and slightly decreases, fluctuating around the low 20s range through 2023 and into 2024, maintaining levels between $21.3 and $23.7. This pattern indicates sustained profitability improvements in the earlier periods, followed by a plateau and modest decline, possibly reflecting changes in operational efficiency or cost structures.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio shows a variable trend that inversely correlates at times with movements in operating profit and share price. Initially, the ratio ranges around 17 to 18 in 2020, dipping to a minimum near 12.16 by late 2022, coinciding with the peak in operating profit per share and modest share price levels. Post this low, the ratio climbs again, reaching values exceeding 19 by late 2024, indicating that share price valuations began to outpace earnings increases. The variations highlight investor valuation shifts independent of operating profit growth, signaling changes in market expectations or risk perceptions.

In summary, the data reveals an initial period of strong growth in operating profit per share, matched by an increase in share price, followed by a period of share price volatility and a stabilization of operating profit. The P/OP ratio's fluctuations underline changing market valuations relative to operational earnings, suggesting shifts in investor confidence or external economic factors influencing stock pricing beyond fundamental earnings performance.

Share Price Trend

The share price exhibited notable fluctuations over the observed period. Initially, it rose from $247.36 to a peak of $408.37, reflecting strong upward momentum. This peak was followed by a decline to approximately $287.92, suggesting some volatility. Subsequent quarters saw a recovery with the share price reaching around $406.80 before experiencing another decrease near $351.07 at the end of the period. Overall, the share price demonstrated periods of significant growth interspersed with corrections, indicating a dynamic market perception.

Sales Per Share Trend

Sales per share showed a consistent upward trajectory throughout the duration. From an initial value of $104.23, sales per share steadily increased quarter over quarter, reaching $166.94 by the end of the timeline. The growth trend was relatively smooth with minor plateaus, suggesting stable revenue expansion relative to outstanding shares. This indicates strengthening operational performance and effective revenue generation relative to share count.

Price-to-Sales (P/S) Ratio Analysis

The P/S ratio demonstrated considerable variability in contrast to the steady rise in sales per share. Starting at 2.37, the ratio ascended to a high of 2.89 coinciding with the peak share price, followed by a decline to levels near 1.86. Midway through the timeline, the ratio fluctuated between approximately 1.86 and 2.61, suggesting changing market valuation multiples. Towards the latter stages, the P/S ratio ranged mostly between 2.1 and 2.6, reflecting a more cautious but positive valuation environment. The oscillations imply that share price movements were influenced by factors beyond sales growth, such as market sentiment and investor expectations.

Overall Insights

The data points to a company experiencing steady revenue growth as evidenced by increasing sales per share, while market valuation metrics like share price and P/S ratio demonstrated more volatility. The share price tends to amplify market confidence and external factors, whereas the P/S ratio variability indicates evolving investor sentiment toward valuation relative to sales. The divergence between steady sales growth and fluctuating valuations suggests the importance of monitoring external market conditions and investor perceptions in addition to fundamental performance.

The financial data reveals notable fluctuations and trends in the share price, book value per share (BVPS), and the price-to-book value (P/BV) ratio over the analyzed periods. These trends offer insight into market valuation dynamics and underlying book value changes.

Share Price

The share price exhibits considerable volatility throughout the periods. Starting at approximately $247.36, it increased to a peak above $408 by late 2021, then declined sharply to around $287 by early 2022. Following this dip, the price fluctuates moderately, with subsequent peaks near $378.99 and $406.8 observed in early 2024 and late 2024, respectively. The range during the time frame analyzed spans from lows near $247 to highs exceeding $408, indicating periods of strong investor enthusiasm followed by correction phases.

Book Value Per Share (BVPS)

BVPS shows an overall upward trend despite some intermittent declines and negative values in earlier quarters. Initially, the BVPS was negative (-3.24), moving closer to neutral and positive values by late 2020 and early 2021. After fluctuations around zero, a more consistent increase is observed from 2023 onward, reaching approximately $12.17 by the last reported quarter. This gradual recovery and growth in book value per share suggest improving underlying equity value or retained earnings accumulation over time.

Price-to-Book Value (P/BV) Ratio

P/BV ratios are highly volatile and often extremely elevated, especially in periods where BVPS approaches zero or is negative. Several quarters show exceptionally high P/BV values, such as figures exceeding 800 and even reaching values above 1300, reflecting market prices vastly outpacing book value. These inflated multiples generally arise when book values are very low or negative, causing the ratio to spike excessively. Over the most recent quarters, the ratio declines steadily from very high levels above 80 down to 28.85, indicating a relative moderation in market valuation as book equity improves.

Overall, the company’s market valuation, as expressed by share price, tends to experience strong upward movements tempered by sharp corrections. Improvements in the book value per share over time help justify the sustained market interest, although extremely high price-to-book ratios during earlier periods highlight a disconnect between market price and underlying equity book value. The progressive decrease in P/BV ratio alongside rising BVPS signals a normalization in investor perception toward a more balanced valuation framework by the end of the period analyzed.