Home Depot Valuation
| HD Stock | MXN 5,760 20.00 0.35% |
At this time, the firm appears to be fairly valued. Home Depot retains a regular Real Value of 5934.51 per share. The prevalent price of the firm is 5760.0. Our model calculates the value of Home Depot from evaluating the firm fundamentals such as Return On Equity of 0.15, return on asset of 0.2, and Current Valuation of 7.57 T as well as inspecting its technical indicators and probability of bankruptcy. In general, most investors encourage acquiring undervalued assets and dropping overvalued assets since, at some point, asset prices and their ongoing real values will come together.
Fairly Valued
Today
Please note that Home Depot's price fluctuation is very steady at this time. Calculation of the real value of Home Depot is based on 3 months time horizon. Increasing Home Depot's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for The Home Depot is useful when determining the fair value of the Home stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Home Depot. Since Home Depot is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Home Stock. However, Home Depot's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 5760.0 | Real 5934.51 | Hype 5760.0 | Naive 5894.64 |
The real value of Home Stock, also known as its intrinsic value, is the underlying worth of Home Depot Company, which is reflected in its stock price. It is based on Home Depot's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Home Depot's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Home Depot's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of The Home Depot helps investors to forecast how Home stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Home Depot more accurately as focusing exclusively on Home Depot's fundamentals will not take into account other important factors: Home Depot Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Home Depot's current stock value. Our valuation model uses many indicators to compare Home Depot value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Home Depot competition to find correlations between indicators driving Home Depot's intrinsic value. More Info.The Home Depot is one of the top stocks in price to earning category among related companies. It is one of the top stocks in price to book category among related companies fabricating about 10.35 of Price To Book per Price To Earning. Comparative valuation analysis is a catch-all model that can be used if you cannot value Home Depot by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Home Depot's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Home Depot's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Home Depot's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Home Depot and how it compares across the competition.
About Home Depot Valuation
The stock valuation mechanism determines the current worth of The Home Depot on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of The Home Depot. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Home Depot based exclusively on its fundamental and basic technical indicators. By analyzing Home Depot's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Home Depot's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Home Depot. We calculate exposure to Home Depot's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Home Depot's related companies.The Home Depot, Inc. operates as a home improvement retailer. The Home Depot, Inc. was incorporated in 1978 and is based in Atlanta, Georgia. HOME DEPOT operates under Home Improvement Retail classification in Mexico and is traded on Mexico Stock Exchange. It employs 500000 people.
8 Steps to conduct Home Depot's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Home Depot's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Home Depot's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Home Depot's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Home Depot's revenue streams: Identify Home Depot's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Home Depot's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Home Depot's growth potential: Evaluate Home Depot's management, business model, and growth potential.
- Determine Home Depot's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Home Depot's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in The Home Depot. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population. For more information on how to buy Home Stock please use our How to Invest in Home Depot guide.You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Complementary Tools for Home Stock analysis
When running Home Depot's price analysis, check to measure Home Depot's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Home Depot is operating at the current time. Most of Home Depot's value examination focuses on studying past and present price action to predict the probability of Home Depot's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Home Depot's price. Additionally, you may evaluate how the addition of Home Depot to your portfolios can decrease your overall portfolio volatility.
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |