Home Depot Inc. (NYSE:HD)

Price to Earnings (P/E) Ratio

The Price to Earnings ratio exhibited fluctuations throughout the observed periods. Initially, it showed moderate variation, moving from 24.24 to a lower value of 17.09 by early 2023, indicating a decreasing market valuation relative to earnings. Following this decline, the ratio increased again, peaking at 27.73 in August 2025. This pattern reflects a cyclical investor sentiment, alternating between more conservative and optimistic valuations of earnings over time.

Price to Operating Profit (P/OP) Ratio

The Price to Operating Profit ratio followed a similar trend to the P/E ratio, starting at 17.14 and declining to a low near 12.16 by early 2023. Thereafter, it experienced a recovery phase, climbing back to values approximating 18.78 by August 2025. This indicates changes in market valuation relative to the company’s operating profitability, with periods of both compression and expansion in investor willingness to pay for operating profits.

Price to Sales (P/S) Ratio

The Price to Sales ratio showed a pattern of gradual decline from around 2.37 at the beginning to a trough near 1.86 in early 2023. Post this period, the ratio rose steadily to about 2.61 by late 2024 before a slight moderation toward 2.46 in mid-2025. This trend suggests variations in market valuation relative to revenues, with a general recovery observed after a phase of lower multiples.

Price to Book Value (P/BV) Ratio

The Price to Book Value ratio presented highly irregular and volatile values, including several substantial spikes and declines. Notably, there were exceptionally high values around 412.02 and 1325.66 at various points, indicating significant market premiums relative to book value. Over time, after these spikes, the ratio declined steadily to around 38.04 by mid-2025. This volatility implies considerable fluctuations in market perception of the company’s net asset value, potentially reflecting changes in asset composition, goodwill, or intangible asset valuations.

Overall Observations

The analyzed valuation ratios depict a common narrative of an initial decline in market valuation multiples across earnings, operating profit, and sales metrics through early 2023, followed by a phase of gradual recovery and increased multiples. The exceptional volatility in the Price to Book Value ratio suggests underlying shifts in balance sheet valuations or investor sentiment particular to net asset valuation. The patterns indicate changing investor confidence and market dynamics affecting how the company’s financial performance and position are priced over time.

The share price demonstrates notable fluctuations over the observed periods, with a general upward trajectory interrupted by periodic declines. Initially, the share price rose from $247.36 to a peak near $408.37 in late 2021. Subsequently, the price retreated to a lower range around $287 to $324 in 2022 and early 2023. From mid-2023 onward, the price experienced renewed growth, climbing again to over $400 by late 2024, although intermittent declines are evident. This pattern suggests market volatility with episodes of strong investor confidence and occasional corrections.

Earnings per share (EPS) exhibit a consistent upward trend through the first several quarters, increasing from $10.20 to a maximum of approximately $16.85 by early 2023. However, following this peak, EPS began a gradual decline, reaching levels near $14.70 in the most recent quarters. The initial growth indicates improving profitability, while the subsequent slight decrease may reflect emerging operational or market challenges affecting earnings capacity.

The price-to-earnings (P/E) ratio reveals varying investor valuation relative to earnings. Early values hovered around mid-20s, then fell to below 20 in mid-2021 through early 2023, coinciding with the EPS peak and a lower share price, suggesting more conservative valuations or market caution during that period. Toward late 2023 and 2024, the P/E ratio climbed back into the mid to high 20s, even reaching near 28, indicating rising market optimism or possibly higher valuation multiples being applied despite stagnating or slightly reducing EPS.

Share Price Trend

Growth with volatility, peaking in late 2021, correction phase in 2022-early 2023, followed by recovery and new highs in 2024.

Earnings Per Share Trend

Steady increase until early 2023 peak, followed by gradual decline through the most recent periods.

P/E Ratio Dynamics

Fluctuated within mid-20s initially, declined below 20 during EPS peak, then rose above 25 again in 2024, signaling changing valuation perspectives.

Insight

The disconnect between rising P/E ratios and declining EPS in 2024 suggests increased investor confidence or expectations of future growth not yet reflected in earnings. The share price volatility aligns with these valuation adjustments and earnings performance.

Share Price Trend

The share price experienced notable volatility over the observed periods. Starting at $247.36, it increased significantly to a peak of $408.37 around October 2021. Subsequently, the price declined and fluctuated between approximately $287 and $324 through early 2023. From that point, the share price again showed a rising trend, reaching around $406.80 by October 2024, before experiencing another dip to about $351.15 in early 2025, and then climbing back towards $407.54 by August 2025. This suggests phases of rapid growth followed by corrections, reflecting changing market conditions and investor sentiment.

Operating Profit per Share (OPPS) Trend

The operating profit per share showed a strong upward trajectory from $14.43 to a peak of $23.68 between May 2020 and January 2023, indicating steady operational performance improvements. After reaching that high point, OPPS exhibited a moderate decline, stabilizing around the low $21 range through the latter part of the dataset, showing some easing of growth momentum but maintaining relatively high profitability levels compared to the initial periods.

Price-to-Operating Profit Ratio (P/OP) Analysis

The P/OP ratio followed a fluctuating pattern without a clear long-term trend. Initially, the ratio hovered between about 16 and 18, then dipped to a low of approximately 12.16 in early 2023, reflecting a lower market price relative to operating profits during that period. Following this, the ratio increased again, reaching highs near 19 in late 2024, indicating that market valuations increased relative to operating profit. This volatility in the multiple suggests changes in market expectations or risk assessments at different times.

Overall Insights

The company demonstrated strong operational performance growth through early 2023, followed by stabilization in profitability. The share price movement displays more variability, with periods of sharp increases rivaled by significant declines, possibly influenced by broader market factors beyond operational results. The varying P/OP ratio indicates changing investor perceptions of the company’s valuation relative to its profitability, reflecting alternating phases of optimism and caution.

Share Price Trend

The share price exhibited considerable fluctuations over the observed periods. Initially, there was an upward movement from approximately $247 to a peak near $408, followed by a decline to around $287. Subsequently, the price showed volatility with alternating increases and decreases, reaching highs close to $407 again towards the end of the timeline. Overall, the share price demonstrates a cyclical pattern with periods of growth followed by corrections.

Sales per Share Progression

Sales per share displayed a consistent upward trajectory throughout the periods. Starting at just above $104, it steadily increased to nearly $166 by the end of the data range. The growth was relatively smooth, with minor fluctuations around the later quarters but no significant reversals. This suggests ongoing revenue growth on a per-share basis over time.

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

The P/S ratio reflected variable investor sentiment and valuation changes across the periods. Early values hovered around 2.3 to 2.6, spiking close to 2.9 at one point, indicating a relatively high valuation. Following this, the ratio decreased to under 2.0, fluctuating between 1.8 and 2.6 over the subsequent periods. This indicates that despite steadily increasing sales per share, market valuation relative to sales experienced periodic compression and expansion, possibly due to changes in market conditions or investor expectations.

Insights

The combination of steadily increasing sales per share and intermittent volatility in share price and P/S ratio suggests that while the underlying business performance improved consistently, market valuation was influenced by external factors including market cycles or investor sentiment shifts. The recurring peaks in share price and P/S ratio may reflect optimistic valuations during growth phases, while the declines potentially correspond with market corrections or profit-taking events. Overall, the financial data points to a company with solid revenue growth but shares subject to stock price variability.

Share Price Trend

The share price exhibited considerable volatility over the reported periods. Initially, it increased from $247.36 in early May 2020 to a peak of $408.37 by late October 2021. Following this peak, the price declined notably to around $287.92 by May 2022, before experiencing a series of fluctuations. A subsequent upward trend is observed beginning early 2023, reaching $406.80 by late October 2024. However, the price showed some dips and recoveries after that, closing near $407.54 in August 2025. Overall, the share price demonstrated periods of strong appreciation interspersed with corrections.

Book Value Per Share (BVPS) Trend

The BVPS showed significant variability, starting at a negative value of -3.24 in May 2020 and moving toward positive territory by early 2021. From that point onwards, BVPS fluctuated but with a general increasing trend, reaching a low negative around -1.66 in May 2022. After this trough, BVPS steadily improved with some short-term oscillations, rising from approximately 0.36 in mid-2023 to 10.71 by August 2025. This indicates an improvement in the underlying equity value per share over the longer term.

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

The P/BV ratio demonstrated extreme volatility and in some periods exhibited extraordinarily high values, such as 191.69 in November 2020 and a peak of 1325.66 in May 2022. These elevated ratios correspond to intervals with very low or negative BVPS, causing the denominator in the ratio to be small or negative, leading to inflated or undefined P/BV values. In later periods, as the BVPS became consistently positive and increased significantly, the P/BV ratio declined steadily from very high levels to 38.04 by August 2025. This decline suggests a gradual normalization and reduction of the premium investors place on the stock relative to its book value.

Overall Insights

The data reflect a recovery and strengthening in the company's book value per share after notable struggles early in the timeframe. Share prices have generally trended upward with intermittent corrections, reflecting market reactions possibly tied to changes in fundamental value and other external factors. The extreme P/BV ratios seen in earlier periods highlight the distortions caused by negative or near-zero book values. As equity value improved over time, valuation metrics stabilized, suggesting enhanced financial health and greater investor confidence by the most recent periods. The relationship between the rising BVPS and fluctuating share price underscores the evolving market perception of the company’s intrinsic worth.