Question 1

What is Home Depot's P/E ratio?

Accepted Answer

Home Depot (HD) P/E ratio is 23.6× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month earnings (net income), using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/E ratio calculated?

Accepted Answer

P/E = Share Price ÷ Trailing Twelve-Month (TTM) Diluted EPS, or equivalently Market Capitalisation ÷ TTM Net Income. 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/E ratio?

Accepted Answer

The price-to-earnings (P/E) ratio, also called the earnings multiple, measures how much investors pay per dollar of a company's trailing twelve-month (TTM) earnings. It is calculated as share price ÷ TTM diluted EPS (equivalent to market capitalisation ÷ TTM net income). A higher P/E implies the market is pricing in stronger future earnings growth or lower risk; a lower P/E can signal slower expected growth, higher risk, or potential undervaluation.

Question 4

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

Accepted Answer

There is no universal "good" P/E. As a rule of thumb, the S&P 500 has historically averaged a P/E in the mid-to-high teens; mature, slow-growth businesses commonly trade in the 10–18× range, while high-growth or asset-light companies often trade at 25–50×+. What matters is the comparison to sector peers and to the company's own historical range. For Home Depot specifically, the relevant sector benchmark is the current sector median of 21.7×.

Question 5

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

Accepted Answer

Home Depot's P/E ratio of 23.6× is above its own 5-year average of 22.5× and above the sector median of 21.7×. That places the current reading at the 55th 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/E ratio range?

Accepted Answer

In the available daily series, Home Depot (HD) P/E ratio has ranged from a low of 11.6× in 2008 to a high of 32.1× in 2002. The 5-year average is 22.5× and the 5-year median is 22.9×.

Question 7

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

Accepted Answer

Home Depot (HD) P/E ratio at the end of 2026 was 26.5×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month earnings figure available at that date.

Question 8

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

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (earnings). 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	$14.2B	26.5×	-0.8×	Feb 1, 2026
2025	$405B	$14.8B	27.4×	+4.3×	Feb 2, 2025
2024	$350B	$15.1B	23.1×	+3.9×	Jan 31, 2024
2023	$329B	$17.1B	19.2×	-3.9×	Jan 31, 2023
2022	$381B	$16.4B	23.2×	+0.6×	Jan 31, 2022
2021	$290B	$12.9B	22.5×	+0.6×	Jan 31, 2021
2020	$247B	$11.2B	22.0×	+3.6×	Jan 31, 2020
2019	$205B	$11.1B	18.4×	-8.6×	Jan 31, 2019
2018	$233B	$8.63B	27.0×	+6.2×	Jan 31, 2018
2017	$166B	$7.96B	20.9×	-1.7×	Jan 31, 2017
2016	$158B	$7.01B	22.6×	+1.1×	Jan 31, 2016
2015	$136B	$6.35B	21.5×	+1.8×	Jan 31, 2015
2014	$106B	$5.39B	19.7×	-2.1×	Jan 31, 2014
2013	$99B	$4.54B	21.8×	+4.3×	Jan 31, 2013
2012	$68B	$3.88B	17.5×	-0.3×	Jan 31, 2012
2011	$59.6B	$3.34B	17.9×	-0.1×	Jan 31, 2011
2010	$47.7B	$2.66B	17.9×	+1.9×	Jan 31, 2010
2009	$36.2B	$2.26B	16.0×	+4.4×	Jan 31, 2009
2008	$51B	$4.4B	11.6×	-2.5×	Jan 31, 2008
2007	$81.2B	$5.76B	14.1×	-0.6×	Jan 31, 2007
2006	$85.8B	$5.84B	14.7×	-3.4×	Jan 31, 2006
2005	$90.3B	$5B	18.1×	-0.6×	Jan 31, 2005
2004	$80.3B	$4.3B	18.7×	+5.5×	Jan 31, 2004
2003	$48.1B	$3.66B	13.1×	—	Jan 31, 2003


Avery Dennison (AVY)	19.3×
Darden Restaurants (DRI)	19.1×
Williams-Sonoma (WSM)	19.1×
Expedia Group (EXPE)	18.9×
Domino's Pizza (DPZ)	17.7×
Etsy (ETSY)	16.9×
Ball (BALL)	16.8×
Royal Caribbean Cruises (RCL)	16.6×
GameStop (GME)	15.6×
D.R. Horton (DHI)	15.3×
Norwegian Cruise Line (NCLH)	15.0×
Hasbro (HAS)	15.0×
NVR (NVR)	14.8×
LKQ (LKQ)	14.5×
Mohawk Industries (MHK)	14.3×
Deckers Outdoor (DECK)	13.8×
Lennar (LEN)	13.5×
Weyco Group (WEYS)	12.8×
Carnival Corporation (CCL)	12.4×
KB Home (KBH)	11.7×
Best Buy Co. (BBY)	11.1×
PDD Holdings (PDD)	10.7×
Toll Brothers (TOL)	10.5×
Lululemon Athletica (LULU)	10.2×
Leggett & Platt (LEG)	6.1×

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

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

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

About P/E Ratio at Home Depot (HD)

Home Depot P/E Ratio by Year

Home Depot P/E Ratio 2026: 26.5×

Home Depot P/E Ratio 2025: 27.4×

Home Depot P/E Ratio 2024: 23.1×

Home Depot P/E Ratio 2023: 19.2×

Home Depot P/E Ratio 2022: 23.2×

Sector peers by P/E Ratio — chart

Sector peers by P/E Ratio — table

Frequently asked questions

Home Depot (HD) Key Financials