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The Home Depot (HD) Cyclically Adjusted PB Ratio : 116.76 (As of Apr. 27, 2024)


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What is The Home Depot Cyclically Adjusted PB Ratio?

As of today (2024-04-27), The Home Depot's current share price is $335.09. The Home Depot's Cyclically Adjusted Book per Share for the quarter that ended in Jan. 2024 was $2.87. The Home Depot's Cyclically Adjusted PB Ratio for today is 116.76.

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

HD' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 5.71   Med: 21.1   Max: 135.99
Current: 116.82

During the past years, The Home Depot's highest Cyclically Adjusted PB Ratio was 135.99. The lowest was 5.71. And the median was 21.10.

HD's Cyclically Adjusted PB Ratio is ranked worse than
99.72% of 717 companies
in the Retail - Cyclical industry
Industry Median: 1.16 vs HD: 116.82

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 Jan. 2024 was $1.052. 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 $2.87 for the trailing ten years ended in Jan. 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 80.74 123.05

The Home Depot Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 80.74 80.91 97.51 90.40 123.05

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
=335.09/2.87
=116.76

* 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 Jan. 2024 is calculated as:

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

Adj_Book=Book Value per Share/CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=1.052/129.4194*129.4194
=1.052

Current CPI (Jan. 2024) = 129.4194.

The Home Depot Quarterly Data

Book Value per Share CPI Adj_Book
201404 8.879 100.023 11.488
201407 8.512 100.520 10.959
201410 7.671 100.176 9.910
201501 7.132 98.604 9.361
201504 7.085 99.824 9.186
201507 6.727 100.691 8.646
201510 6.009 100.346 7.750
201601 5.045 99.957 6.532
201604 5.088 100.947 6.523
201607 5.386 101.524 6.866
201610 4.608 101.988 5.847
201701 3.602 102.456 4.550
201704 3.310 103.167 4.152
201707 3.015 103.278 3.778
201710 2.177 104.070 2.707
201801 1.256 104.578 1.554
201804 1.462 105.708 1.790
201807 1.755 106.324 2.136
201810 1.167 106.695 1.416
201901 -1.700 106.200 -2.072
201904 -1.946 107.818 -2.336
201907 -1.058 108.250 -1.265
201910 -0.993 108.577 -1.184
202001 -2.893 108.841 -3.440
202004 -3.243 108.173 -3.880
202007 -0.385 109.318 -0.456
202010 1.427 109.861 1.681
202101 3.063 110.364 3.592
202104 1.641 112.673 1.885
202107 1.959 115.183 2.201
202110 0.989 116.696 1.097
202201 -1.639 118.619 -1.788
202204 -1.661 121.978 -1.762
202207 0.231 125.002 0.239
202210 1.273 125.734 1.310
202301 1.537 126.223 1.576
202304 0.359 127.992 0.363
202307 1.334 128.974 1.339
202310 1.436 129.810 1.432
202401 1.052 129.419 1.052

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  (NYSE: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 (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.
Executives
William D Bastek officer: EVP, Merchandising 2455 PACES FERRY RD., SE, C-20, ATLANTA GA 30339
Ann Marie Campbell officer: EVP - U.S. Stores 2455 PACES FERRY ROAD, ATLANTA GA 30339
Kimberly R Scardino officer: SVP-Finance, CAO & Controller 108 WILMOT ROAD, DEERFIELD IL 60015
Richard V Mcphail officer: EVP & CFO 2455 PACES FERRY RD SE, ATLANTA GA 30339
Timothy A. Hourigan officer: EVP - Human Resources 2455 PACES FERRY RD, SE, ATLANTA GA 30339
Fahim Siddiqui officer: EVP and CIO 2455 PACES FERRY RD., SE, ATLANTA GA 30339
Teresa Wynn Roseborough officer: EVP, Gen. Counsel & Corp. Sec. 2455 PACES FERRY ROAD NW, C-20, ATLANTA GA 30339
Hector A Padilla officer: EVP - Outside Sales & Service 2455 PACES FERRY RD., SE, ATLANTA GA 30339
Jeffrey G Kinnaird officer: EVP - Merchandising 2455 PACES FERRY RD., SE, C-20 LEGAL AFFAIRS, ATLANTA GA 30339
Edward P. Decker officer: EVP, Merchandising 2455 PACES FERRY RD NW, C-20, ATLANTA X1 30339
Matt Carey officer: EVP & CIO 11216 WAPLES MILL ROAD SUITE 100, FAIRFAX VA 22030
Paula Santilli director PEPSICO, INC., 700 ANDERSON HILL ROAD, PURCHASE NY 10577
Becker Caryn Seidman director 65 EAST 55TH STREET, 17TH FLOOR, NEW YORK NY 10022
John A. Deaton officer: EVP - Supply Chain & Prod. Dev 2455 PACES FERRY RD., SE, ATLANTA GA 30339
Craig A Menear director, officer: Chairman & CEO 1436 PEACHTREE BATTLE AVENUE, ATLANTA GA 30327

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