Home Depot Inc. (NYSE:HD)

The financial ratios exhibit several notable trends over the examined periods, reflecting changes in valuation and market perception.

Price to Earnings (P/E) Ratio

The P/E ratio initially shows a moderate increase from 17.38 in early 2020 to a peak of 26.04 in late 2020, indicating rising market expectations or earnings growth stagnation. Subsequently, this ratio declines to a low around 17.09 by mid-2022, suggesting improved earnings relative to price or a correction in valuation. Thereafter, it fluctuates within a range of approximately 17 to 25, with peaks near 27 observed in late 2024, signaling renewed market optimism or profit margin variability.

Price to Operating Profit (P/OP) Ratio

This ratio trends similarly to the P/E ratio, rising from approximately 12.33 in early 2020 to a high near 19.12 in early 2022. This rise implies increasing prices relative to operating profits, reflecting either higher market valuations or compressed operating profit margins. Afterward, the ratio declines to near 12.16 in early 2023 before ascending again toward roughly 19 in late 2024, suggesting volatility in operating profit levels or fluctuating market perceptions.

Price to Sales (P/S) Ratio

The P/S ratio demonstrates a general upward trend from 1.77 in early 2020 to peaks around 2.89 in early 2022, indicating a growing premium placed on sales revenue. This period likely corresponds with growth expectations or higher profitability. Following the peak, the ratio decreases and then oscillates between roughly 1.86 and 2.61, denoting variable revenue growth rates or shifts in investor sentiment toward sales performance.

Price to Book Value (P/BV) Ratio

This metric reveals extreme volatility and unusually high values in the given data series, with notable spikes reaching above 1300 in early 2023 and then gradually declining to approximately 38 by mid-2025. The significant fluctuations and very high ratios may point to accounting anomalies, changes in book value measures, or extraordinary market conditions affecting book value perception. Following the peak, the downward trend could indicate normalization of valuation relative to book value or substantial changes in underlying equity.

Overall, valuation ratios reflect a period of increased market optimism and variable earnings or profit margins during 2020-2022, followed by phases of correction and renewed valuation increases toward late 2024. The pronounced irregularities in the price to book value ratio warrant further investigation to clarify the underlying causes.

The share price exhibits substantial fluctuations over the analyzed periods, starting at $189.99 in May 2019 and experiencing an overall upward trend with intermittent declines. Notable peaks are observed at $408.37 in October 2021 and $407.54 in August 2025. Periods of decline include early 2022 and mid-2023, followed by recoveries. The price variability suggests responsiveness to market conditions and possibly operational performance.

Earnings per share (EPS) data commences from February 2020, initially reported at $10.46. There is a consistent upward trajectory, peaking around early 2023 at approximately $16.85, indicating improving profitability. Post-peak, EPS gradually declines to values near $14.7 by mid-2025, implying a slight deterioration in earnings performance or possible market pressures affecting profits.

The Price-to-Earnings (P/E) ratio displays considerable volatility, ranging from a low of approximately 17.09 to a high near 27.73. Early values from February 2020 to mid-2021 show relative stability in the low twenties, followed by fluctuations that may reflect changing investor sentiment or shifts in expected growth. Peaks in the P/E ratio correspond to periods when the share price is elevated relative to earnings, notably in late 2024 and mid-2025. Conversely, lower P/E ratios align with periods of share price dips or increased earnings.

Overall, the data reflects a company experiencing growth up to early 2023, followed by modest declines in earnings and share price adjustments. The interplay between EPS and share price impacts the P/E ratio, suggesting a market that adjusts expectations based on recent financial performance and broader economic factors. Investors may perceive value changes over time, as indicated by the variability in valuation multiples.

The share price exhibited significant volatility over the observed periods with a general upward trend punctuated by intermittent declines. Starting at $189.99 in May 2019, the price increased steadily, reaching a peak of $408.37 in October 2021. After this peak, prices experienced a decline followed by fluctuations, demonstrating a pattern of recovery and subsequent dips. Notably, the price rose again to $406.80 by October 2024, reflecting resilience and growth potential. Despite occasional drops, the later periods show share prices maintaining relatively high levels compared to the initial data points.

The operating profit per share began to be recorded from the period of February 2020, starting at $14.74. A consistent upward trajectory is observed through the subsequent quarters, peaking around $23.68 in January 2023. This indicates an improvement in profitability per share over the first three years of data. After this peak, the figure stabilizes somewhat, hovering around the low $21 to $23 range, suggesting a plateau in profit growth per share in the more recent periods.

The price-to-operating-profit (P/OP) ratio shows substantial fluctuations, beginning at 12.33 in February 2020 and rising to higher multiples during certain periods. Peaks in the P/OP ratio occurred around August 2019 (17.14), November 2019 (18.45), and again in later periods such as October 2024 (19.08). This variability indicates changing market perceptions of the company's profitability relative to its share price, reflecting potential shifts in investor sentiment, expectations of future growth, or market conditions. Lower values such as 12.16 in January 2023 correspond with higher operating profits per share, indicating improving earnings relative to share price at those times.

Share Price Trend

Overall upward movement from $189.99 to peaks above $400, with some volatility and periods of decline.

Operating Profit Per Share

Steady increase from $14.74 starting in early 2020, peaking near $23.68 in early 2023, followed by stabilization.

Price-to-Operating-Profit Ratio

Variable with peaks and troughs; higher ratios indicate periods of potentially overvalued share prices relative to profits, while lower ratios suggest better valuation relative to profitability.

In summary, the company experienced growth in both share price and profitability per share over the period observed, with some fluctuations. The variations in the P/OP ratio reflect changing market valuations and investor sentiments regarding the company's earnings potential. The profit per share growth stabilizing in recent years may warrant attention for future performance forecasts.

The share price exhibited notable fluctuations throughout the periods under review. Initially starting at $189.99 in May 2019, it rose steadily to a peak of $408.37 by October 2021. Following this peak, the price experienced some volatility, dropping to around $287.92 in May 2022 before improving again towards $407.54 by August 2025. This indicates an overall upward trend with intermittent periods of correction.

Sales per share demonstrated a consistent upward trend from their first recorded value of $102.56 in May 2020, increasing steadily to reach $165.82 by August 2025. The progression reflects sustained growth in sales generation on a per-share basis, with incremental increases over each quarter and no significant declines, suggesting positive operational performance.

The price-to-sales (P/S) ratio revealed periods of both expansion and contraction. Starting at 1.77 in May 2020, the ratio climbed to a peak of 2.89 in January 2022, reflecting a period where the share price increased disproportionately relative to sales per share. Subsequently, the P/S ratio declined to values near 1.86 by May 2023, indicating either a relative increase in sales or a decrease in price. From there, the P/S ratio generally trended upward again, reaching approximately 2.46 by August 2025. These fluctuations in valuation multiples suggest changing market perceptions and investor sentiment relative to the company's sales performance.

In summary, the data reveals sustained growth in sales per share accompanied by a generally rising share price, albeit with phases of volatility. The P/S ratio's oscillations reflect dynamic valuation attitudes toward the company's revenue generation capabilities over the periods analyzed.

The share price demonstrates a general upward trajectory with fluctuations over the observed periods. Initially, the share price rose from $189.99 in May 2019 to a peak of $408.37 in October 2021. This peak was followed by a decline to $287.97 by January 2023. Subsequently, the share price recovered and increased again to reach $407.54 by August 2025, indicating strong overall growth despite intermediate volatility.

The book value per share (BVPS) exhibits significant variability and some initial negative values, indicating a deficit or negative equity position in early periods. Starting from -$1.95 in May 2019, BVPS fluctuated with negative and positive values in the early years. From around November 2020 onward, BVPS generally moves into a positive range and shows a persistent increasing trend, jumping from $0.99 in October 2021 to $10.71 by August 2025. This trend reflects improving equity per share, suggesting enhanced company intrinsic value over time.

The price-to-book value ratio (P/BV) shows high volatility across the periods observed. Where P/BV data is available, the ratio reaches very elevated levels, such as 1325.66 in January 2023, indicating that the share price was significantly higher than the book value per share at that time. The P/BV generally decreases over the later periods, from 191.69 in January 2021 to 38.04 in August 2025, implying that the share price is becoming more aligned with the book value as the latter increases substantially.

In summary, the share price demonstrates strong growth with notable peaks and troughs, while the book value per share shows a marked improvement from negative to increasing positive values. The price-to-book ratio's high initial levels and subsequent decline suggest that the market valuation, relative to intrinsic book value, has become more balanced over time. These patterns may imply increased shareholder value and strengthening financial stability in the periods analyzed.