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The Home Depot (HD) Cyclically Adjusted Price-to-FCF : 28.06 (As of Apr. 27, 2024)


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What is The Home Depot Cyclically Adjusted Price-to-FCF?

As of today (2024-04-27), The Home Depot's current share price is $335.09. The Home Depot's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 was $11.94. The Home Depot's Cyclically Adjusted Price-to-FCF for today is 28.06.

The historical rank and industry rank for The Home Depot's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

HD' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 24.07   Med: 35.84   Max: 46.78
Current: 28.07

During the past years, The Home Depot's highest Cyclically Adjusted Price-to-FCF was 46.78. The lowest was 24.07. And the median was 35.84.

HD's Cyclically Adjusted Price-to-FCF is ranked worse than
75.4% of 435 companies
in the Retail - Cyclical industry
Industry Median: 13.15 vs HD: 28.07

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 Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

The Home Depot's adjusted free cash flow per share data for the three months ended in Jan. 2024 was $3.902. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $11.94 for the trailing ten years ended in Jan. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


The Home Depot Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for The Home Depot's Cyclically Adjusted Price-to-FCF 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 Price-to-FCF Chart

The Home Depot Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 36.08 35.18 39.86 31.03 29.57

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 Price-to-FCF 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 31.03 27.72 29.41 24.34 29.57

Competitive Comparison of The Home Depot's Cyclically Adjusted Price-to-FCF

For the Home Improvement Retail subindustry, The Home Depot's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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 Price-to-FCF Distribution in the Retail - Cyclical Industry

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

* The bar in red indicates where The Home Depot's Cyclically Adjusted Price-to-FCF falls into.



The Home Depot Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF 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 Price-to-FCF.

The Home Depot's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=335.09/11.94
=28.06

* 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 FCF per Share for the quarter that ended in Jan. 2024 is calculated as:

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

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=3.902/129.4194*129.4194
=3.902

Current CPI (Jan. 2024) = 129.4194.

The Home Depot Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201404 1.658 100.023 2.145
201407 1.754 100.520 2.258
201410 0.445 100.176 0.575
201501 1.179 98.604 1.547
201504 2.362 99.824 3.062
201507 1.666 100.691 2.141
201510 0.827 100.346 1.067
201601 1.258 99.957 1.629
201604 2.645 100.947 3.391
201607 2.314 101.524 2.950
201610 0.483 101.988 0.613
201701 1.147 102.456 1.449
201704 3.410 103.167 4.278
201707 2.447 103.278 3.066
201710 1.168 104.070 1.453
201801 1.498 104.578 1.854
201804 2.958 105.708 3.622
201807 2.951 106.324 3.592
201810 1.323 106.695 1.605
201901 2.137 106.200 2.604
201904 3.646 107.818 4.376
201907 2.971 108.250 3.552
201910 1.467 108.577 1.749
202001 1.937 108.841 2.303
202004 4.783 108.173 5.722
202007 8.028 109.318 9.504
202010 1.962 109.861 2.311
202101 0.430 110.364 0.504
202104 5.382 112.673 6.182
202107 2.937 115.183 3.300
202110 2.606 116.696 2.890
202201 2.259 118.619 2.465
202204 2.984 121.978 3.166
202207 2.585 125.002 2.676
202210 2.023 125.734 2.082
202301 3.633 126.223 3.725
202304 4.649 127.992 4.701
202307 5.782 128.974 5.802
202310 3.567 129.810 3.556
202401 3.902 129.419 3.902

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF 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 Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow 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 Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


The Home Depot Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of The Home Depot's Cyclically Adjusted Price-to-FCF 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