PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, The Home Depot's PE Ratio without NRI is 22.05. The Home Depot's 5-Year EBITDA growth rate is 12.20%. Therefore, The Home Depot's PEG Ratio for today is 1.81.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for The Home Depot's PEG Ratio or its related term are showing as below:
HD'
s PEG Ratio Range Over the Past 10 Years
Min: 1 Med: 1.34 Max: 2.49
Current: 1.81
During the past 13 years, The Home Depot's highest PEG Ratio was 2.49. The lowest was 1.00. And the median was 1.34.
HD's PEG Ratio is ranked worse than 63.55% of 439
companies
in the Retail - Cyclical industry
Industry Median: 1.32
vs HD: 1.81
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
The Home Depot PEG Ratio Historical Data
The historical data trend for The Home Depot's PEG 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.
Competitive Comparison of The Home Depot's PEG Ratio
For the Home Improvement Retail subindustry, The Home Depot's PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's PEG Ratio distribution charts can be found below:
* The bar in red indicates where The Home Depot's PEG Ratio falls into.
The Home Depot PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year EBITDA growth rate.
The Home Depot's PEG Ratio for today is calculated as
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The Home Depot (NYSE:HD) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
The Home Depot PEG Ratio Related Terms
Thank you for viewing the detailed overview of The Home Depot's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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