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The Home Depot (WBO:HD) Cyclically Adjusted PB Ratio : 121.20 (As of May. 24, 2024)


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What is The Home Depot Cyclically Adjusted PB Ratio?

As of today (2024-05-24), The Home Depot's current share price is €303.00. The Home Depot's Cyclically Adjusted Book per Share for the quarter that ended in Apr. 2024 was €2.50. The Home Depot's Cyclically Adjusted PB Ratio for today is 121.20.

The historical rank and industry rank for The Home Depot's Cyclically Adjusted PB Ratio or its related term are showing as below:

WBO:HD' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 5.71   Med: 21.27   Max: 135.51
Current: 123.63

During the past years, The Home Depot's highest Cyclically Adjusted PB Ratio was 135.51. The lowest was 5.71. And the median was 21.27.

WBO:HD's Cyclically Adjusted PB Ratio is ranked worse than
99.73% of 732 companies
in the Retail - Cyclical industry
Industry Median: 1.18 vs WBO:HD: 123.63

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

The Home Depot's adjusted book value per share data for the three months ended in Apr. 2024 was €1.710. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is €2.50 for the trailing ten years ended in Apr. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


The Home Depot Cyclically Adjusted PB Ratio Historical Data

The historical data trend for The Home Depot's Cyclically Adjusted PB Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Home Depot Cyclically Adjusted PB Ratio Chart

The Home Depot Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.72 44.48 70.77 80.74 122.39

The Home Depot Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24
Cyclically Adjusted PB Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 80.91 97.51 90.40 122.39 124.99

Competitive Comparison of The Home Depot's Cyclically Adjusted PB Ratio

For the Home Improvement Retail subindustry, The Home Depot's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Home Depot's Cyclically Adjusted PB Ratio Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where The Home Depot's Cyclically Adjusted PB Ratio falls into.



The Home Depot Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

The Home Depot's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=303.00/2.5
=121.20

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The Home Depot's Cyclically Adjusted Book per Share for the quarter that ended in Apr. 2024 is calculated as:

For example, The Home Depot's adjusted Book Value per Share data for the three months ended in Apr. 2024 was:

Adj_Book=Book Value per Share/CPI of Apr. 2024 (Change)*Current CPI (Apr. 2024)
=1.71/131.7762*131.7762
=1.710

Current CPI (Apr. 2024) = 131.7762.

The Home Depot Quarterly Data

Book Value per Share CPI Adj_Book
201407 6.290 100.520 8.246
201410 6.052 100.176 7.961
201501 6.141 98.604 8.207
201504 6.547 99.824 8.643
201507 6.115 100.691 8.003
201510 5.354 100.346 7.031
201601 4.646 99.957 6.125
201604 4.483 100.947 5.852
201607 4.874 101.524 6.326
201610 4.184 101.988 5.406
201701 3.386 102.456 4.355
201704 3.088 103.167 3.944
201707 2.614 103.278 3.335
201710 1.853 104.070 2.346
201801 1.030 104.578 1.298
201804 1.191 105.708 1.485
201807 1.502 106.324 1.862
201810 1.015 106.695 1.254
201901 -1.489 106.200 -1.848
201904 -1.732 107.818 -2.117
201907 -0.944 108.250 -1.149
201910 -0.897 108.577 -1.089
202001 -2.607 108.841 -3.156
202004 -2.984 108.173 -3.635
202007 -0.335 109.318 -0.404
202010 1.213 109.861 1.455
202101 2.515 110.364 3.003
202104 1.372 112.673 1.605
202107 1.658 115.183 1.897
202110 0.853 116.696 0.963
202201 -1.449 118.619 -1.610
202204 -1.538 121.978 -1.662
202207 0.228 125.002 0.240
202210 1.292 125.734 1.354
202301 1.427 126.223 1.490
202304 0.328 127.992 0.338
202307 1.206 128.974 1.232
202310 1.360 129.810 1.381
202401 0.966 130.124 0.978
202404 1.710 131.776 1.710

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


The Home Depot  (WBO:HD) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


The Home Depot Cyclically Adjusted PB Ratio Related Terms

Thank you for viewing the detailed overview of The Home Depot's Cyclically Adjusted PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


The Home Depot (WBO:HD) Business Description

Address
2455 Paces Ferry Road, Atlanta, GA, USA, 30339
Home Depot is the world's largest home improvement specialty retailer, operating more than 2,300 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the United States, Canada, and Mexico. Its stores offer numerous building materials, home improvement products, lawn and garden products, and decor products and provide various services, including home improvement installation services and tool and equipment rentals. The acquisition of distributor Interline Brands in 2015 allowed Home Depot to enter the maintenance, repair, and operations business, which has been expanded through the tie-up with HD Supply (2020). Moreover, the additions of the Company Store brought textile exposure to the lineup, while Redi Carpet added multifamily flooring.