Fundamentals · HD
Valuation Summary for HD
AI-generated plain-English read of valuation summary for HD. Updated daily.
Cheap multiples, compressing
moderateCheap on absolute multiples (19.5x) but trading at a sector premium. Suggests the market has more confidence in this name than peers — verify whether that premium is justified by superior growth or margins.
What will probably happen
- Compression has driven multiples into value territory — if the business is fundamentally sound, re-rating upside is significant.
- Modest income yield provides a partial floor while waiting for valuation normalisation.
What to do
- If you HOLD this stock
- Valuation doesn't give a strong signal for or against adding. Hold and monitor earnings delivery against the current multiple.
- If you're EVALUATING this stock
- Cheap multiples are a good starting point. Before initiating, verify: earnings quality (is the low P/E on growing or shrinking earnings?), debt load, and whether peers are also cheap (sector re-pricing).
- If you trade OPTIONS
- Long calls (90+ DTE) on the value thesis; buy time for re-rating. Avoid weeklies — cheap multiples can stay cheap for longer than expected.
9 quarters / 3 populated multiples — directionally informative; use more data for full conviction.
Technical details
Technical analysis
- P/Book
- 26.7x
- P/Sales
- 1.7x
- EV/EBITDA
- —
- FCF yield
- —
- EV/Revenue
- —
- P/E (forward)
- —
- Dividend yield
- 2.7%
- Earnings yield
- —
- Income profile
- Balanced Income
- P/E (trailing)
- 19.5x
- Sector context
- Retail
- Sector comparison
- Unknown Vs Sector
- Absolute valuation
- Cheap
- History (quarters)
- 9
- Multiple trajectory
- Compressing
Key levels
| Level | Value |
|---|---|
| pb ratio | 26.721 |
| pe ratio | 19.466 |
| ps ratio | 1.674 |
| n quarters | 9 |
| prior year pe | 26.115 |
| dividend yield | 0.027 |
Caveats
- Multiples should be read alongside growth and quality metrics — a low P/E on declining earnings isn't cheap, it's a value trap warning.
- Sector context wasn't provided — absolute multiples may mislead without industry comparison.