Home Depot Stock Market Value
HD Stock | USD 371.91 1.32 0.35% |
Symbol | Home |
Home Depot Price To Book Ratio
Is Home Depot's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Home Depot. If investors know Home will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Home Depot listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.15) | Dividend Share 8.52 | Earnings Share 15.12 | Revenue Per Share 152.822 | Quarterly Revenue Growth (0.03) |
The market value of Home Depot is measured differently than its book value, which is the value of Home that is recorded on the company's balance sheet. Investors also form their own opinion of Home Depot's value that differs from its market value or its book value, called intrinsic value, which is Home Depot's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Home Depot's market value can be influenced by many factors that don't directly affect Home Depot's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Home Depot's value and its price as these two are different measures arrived at by different means. Investors typically determine if Home Depot is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Home Depot's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Home Depot 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Home Depot's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Home Depot.
09/25/2022 |
| 03/18/2024 |
If you would invest 0.00 in Home Depot on September 25, 2022 and sell it all today you would earn a total of 0.00 from holding Home Depot or generate 0.0% return on investment in Home Depot over 540 days. Home Depot is related to or competes with Macys, Wayfair, 1StdibsCom, AutoNation, Boqii Holding, Foot Locker, and JD. The Home Depot, Inc. operates as a home improvement retailer More
Home Depot Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Home Depot's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Home Depot upside and downside potential and time the market with a certain degree of confidence.
Downside Deviation | 0.9395 | |||
Information Ratio | 0.0499 | |||
Maximum Drawdown | 5.22 | |||
Value At Risk | (1.58) | |||
Potential Upside | 2.02 |
Home Depot Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Home Depot's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Home Depot's standard deviation. In reality, there are many statistical measures that can use Home Depot historical prices to predict the future Home Depot's volatility.Risk Adjusted Performance | 0.1196 | |||
Jensen Alpha | 0.0431 | |||
Total Risk Alpha | (0.04) | |||
Sortino Ratio | 0.0568 | |||
Treynor Ratio | 0.172 |
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Home Depot's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Home Depot in the context of predictive analytics.
Home Depot Backtested Returns
We consider Home Depot very steady. Home Depot holds Efficiency (Sharpe) Ratio of 0.1, which attests that the entity had 0.1% return per unit of risk over the last 3 months. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Home Depot, which you can use to evaluate the future volatility of the firm. Please check out Home Depot's Market Risk Adjusted Performance of 0.182, downside deviation of 0.9395, and Risk Adjusted Performance of 0.1196 to validate if the risk estimate we provide is consistent with the expected return of 0.1%. Home Depot has a performance score of 8 on a scale of 0 to 100. The company retains a Market Volatility (i.e., Beta) of 1.08, which attests to a somewhat significant risk relative to the market. Home Depot returns are very sensitive to returns on the market. As the market goes up or down, Home Depot is expected to follow. Although it is important to respect Home Depot current price history, it is better to be realistic regarding the information on the equity's current price movements. Home Depot right now retains a risk of 0.98%. Please check out Home Depot downside variance, daily balance of power, and the relationship between the maximum drawdown and skewness to decide if Home Depot will be following its current trending patterns.
Auto-correlation | -0.34 |
Poor reverse predictability
Home Depot has poor reverse predictability. Overlapping area represents the amount of predictability between Home Depot time series from 25th of September 2022 to 22nd of June 2023 and 22nd of June 2023 to 18th of March 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Home Depot price movement. The serial correlation of -0.34 indicates that nearly 34.0% of current Home Depot price fluctuation can be explain by its past prices.
Correlation Coefficient | -0.34 | |
Spearman Rank Test | -0.38 | |
Residual Average | 0.0 | |
Price Variance | 784.42 |
Home Depot lagged returns against current returns
Autocorrelation, which is Home Depot stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Home Depot's stock expected returns. We can calculate the autocorrelation of Home Depot returns to help us make a trade decision. For example, suppose you find that Home Depot stock has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the stock movement to match the lagging time series.
Current and Lagged Values |
Timeline |
Home Depot regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Home Depot stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Home Depot stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Home Depot stock over time.
Current vs Lagged Prices |
Timeline |
Home Depot Lagged Returns
When evaluating Home Depot's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Home Depot stock have on its future price. Home Depot autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Home Depot autocorrelation shows the relationship between Home Depot stock current value and its past values and can show if there is a momentum factor associated with investing in Home Depot.
Regressed Prices |
Timeline |
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Try AI Portfolio ArchitectCheck out Home Depot Correlation, Home Depot Volatility and Home Depot Alpha and Beta module to complement your research on Home Depot. For information on how to trade Home Stock refer to our How to Trade Home Stock guide.Note that the Home Depot information on this page should be used as a complementary analysis to other Home Depot's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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.
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