Question 1

What is Home Depot's P/FCF ratio?

Accepted Answer

Home Depot (HD) P/FCF ratio is 23.1× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month free cash flow, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/FCF ratio calculated?

Accepted Answer

P/FCF = Market Capitalisation ÷ Trailing Twelve-Month (TTM) Free Cash Flow, where Free Cash Flow = Operating Cash Flow − Capital Expenditures. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the P/FCF ratio?

Accepted Answer

The price-to-free-cash-flow (P/FCF) ratio compares a company's market capitalisation to its trailing twelve-month (TTM) free cash flow. It is calculated as market cap ÷ TTM free cash flow, where free cash flow = operating cash flow − capital expenditures. Because FCF cannot be inflated by non-cash accounting items, P/FCF is often considered a cleaner measure of "earnings-power valuation" than P/E — especially for capital-intensive businesses where depreciation diverges from real cash outflows.

Question 4

What is a good P/FCF ratio for Home Depot?

Accepted Answer

Mature companies that consistently convert profit into cash often trade at 15–25× P/FCF; capital-intensive businesses with lumpy capex typically trade lower. Compare against sector peers and against the company's own multi-year average — single-year P/FCF can be distorted by working-capital swings. For Home Depot specifically, the relevant sector benchmark is the current sector median of 17.1×.

Question 5

Is Home Depot's P/FCF ratio high or low?

Accepted Answer

Home Depot's P/FCF ratio of 23.1× is below its own 5-year average of 25.0× and above the sector median of 17.1×. That places the current reading at the 33th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is Home Depot's historical P/FCF ratio range?

Accepted Answer

In the available daily series, Home Depot (HD) P/FCF ratio has ranged from a low of 9.6× in 2009 to a high of 51.7× in 2005. The 5-year average is 25.0× and the 5-year median is 25.7×.

Question 7

What was Home Depot's P/FCF ratio in 2026?

Accepted Answer

Home Depot (HD) P/FCF ratio at the end of 2026 was 29.7×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month free cash flow figure available at that date.

Question 8

Why does Home Depot's P/FCF ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (free cash flow). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2026	$375B	$12.6B	29.7×	+4.9×	Feb 1, 2026
2025	$405B	$16.3B	24.8×	+5.3×	Feb 2, 2025
2024	$350B	$17.9B	19.5×	-9.1×	Jan 31, 2024
2023	$329B	$11.5B	28.6×	+1.4×	Jan 31, 2023
2022	$381B	$14B	27.2×	+9.5×	Jan 31, 2022
2021	$290B	$16.4B	17.7×	-4.4×	Jan 31, 2021
2020	$247B	$11.2B	22.1×	+2.8×	Jan 31, 2020
2019	$205B	$10.6B	19.3×	-3.7×	Jan 31, 2019
2018	$233B	$10.1B	23.0×	+2.7×	Jan 31, 2018
2017	$166B	$8.16B	20.3×	+0.2×	Jan 31, 2017
2016	$158B	$7.87B	20.1×	+0.1×	Jan 31, 2016
2015	$136B	$6.8B	20.1×	+3.0×	Jan 31, 2015
2014	$106B	$6.24B	17.0×	-0.5×	Jan 31, 2014
2013	$99B	$5.66B	17.5×	+5.0×	Jan 31, 2013
2012	$68B	$5.43B	12.5×	-4.6×	Jan 31, 2012
2011	$59.6B	$3.49B	17.1×	+5.6×	Jan 31, 2011
2010	$47.7B	$4.16B	11.5×	+1.6×	Jan 31, 2010
2009	$36.2B	$3.68B	9.8×	-13.7×	Jan 31, 2009
2008	$51B	$2.17B	23.5×	+5.2×	Jan 31, 2008
2007	$81.2B	$4.43B	18.3×	-18.6×	Jan 31, 2007
2006	$85.8B	$2.33B	36.9×	+6.4×	Jan 31, 2006
2005	$90.3B	$2.96B	30.6×	-2.4×	Jan 31, 2005
2004	$80.3B	$2.44B	32.9×	+9.5×	Jan 31, 2004
2003	$48.1B	$2.05B	23.4×	—	Jan 31, 2003


DraftKings (DKNG)	15.5×
Avery Dennison (AVY)	15.2×
Wynn Resorts (WYNN)	15.1×
NVR (NVR)	14.9×
Booking Holdings (BKNG)	14.7×
D.R. Horton (DHI)	14.2×
V.F. (VFC)	12.6×
Deckers Outdoor (DECK)	12.0×
Carnival Corporation (CCL)	11.9×
Lululemon Athletica (LULU)	11.6×
Toll Brothers (TOL)	11.1×
Hasbro (HAS)	9.8×
PDD Holdings (PDD)	9.5×
LKQ (LKQ)	9.3×
KB Home (KBH)	8.8×
Mohawk Industries (MHK)	8.4×
MercadoLibre (MELI)	8.2×
Best Buy Co. (BBY)	7.9×
Etsy (ETSY)	7.2×
Leggett & Platt (LEG)	6.6×
Weyco Group (WEYS)	6.2×
Expedia Group (EXPE)	6.0×
MGM Resorts (MGM)	5.5×
Ford Motor (F)	4.8×
General Motors (GM)	4.3×

P/FCF Ratio for Home Depot (HD) 2003-2026

P/FCF Ratio daily chart for Home Depot (HD)

Historical P/FCF Ratio for Home Depot (HD) from 2003 to 2026

About P/FCF Ratio at Home Depot (HD)

Home Depot P/FCF Ratio by Year

Home Depot P/FCF Ratio 2026: 29.7×

Home Depot P/FCF Ratio 2025: 24.8×

Home Depot P/FCF Ratio 2024: 19.5×

Home Depot P/FCF Ratio 2023: 28.6×

Home Depot P/FCF Ratio 2022: 27.2×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

Home Depot (HD) Key Financials