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The Home DepotXSWX:HD +0.56%85 3-Year FCF Growth Rate is 4.30% as of Jul. 2026, which is 65% below its 10-year median of 12.40. GuruFocus rates XSWX:HD with a GF Score™ of 85/100 and a GF Value™ of CHF313.54 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 735 Retail - Cyclical companies, The Home Depot ranks worse than 54.56% on this metric.
During the past 12 months, The Home Depot's average Free Cash Flow per Share Growth Rate was 5.90% per year.
During the past 3 years, the average Free Cash Flow per Share Growth Rate was 4.30% per year.
During the past 5 years, the average Free Cash Flow per Share Growth Rate was 0.70% per year.
During the past 10 years, the average Free Cash Flow per Share Growth Rate was 9.70% per year.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Free Cash Flow per Share growth rate.
During the past 13 years, the highest 3-Year average Free Cash Flow per Share Growth Rate of The Home Depot was 43.20% per year. The lowest was -75.10% per year. And the median was 12.40% per year.
The Home Depot (XSWX:HD) 3-Year FCF Growth Rate Explanation
Free Cash Flow per Share is the amount of Free Cash Flow per outstanding share of the company's stock. Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company. It's used in the calculation of Forward Rate of Return (Yacktman) %.
The Home Depot 3-Year FCF Growth Rate Related Terms
XSWX:HD vs LOW, FND, HVT: 3-Year FCF Growth Rate Comparison
For the Home Improvement Retail subindustry, The Home Depot's 3-Year FCF Growth Rate, along with its competitors' market caps and 3-Year FCF Growth Rate data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Home Depot 3-Year FCF Growth Rate vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's 3-Year FCF Growth Rate distribution charts can be found below:
* The bar in red indicates where The Home Depot's 3-Year FCF Growth Rate falls into.
This is the 3-year average growth rate of Free Cash Flow per Share. The growth rate is calculated using exponential compounding based on the latest four year annual data.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Free Cash Flow per Share growth rate.
The Home Depot (XSWX:HD) has a 3-Year FCF Growth Rate of 4.30% as of Jul. 2026. 3-Year FCF Growth Rate is the 3-year average growth rate of Free Cash Flow per Share. View historical data for The Home Depot and its competitors. This is 65% below median its historical median of 12.40. According to the industry distribution chart, The Home Depot ranks #401 out of 735 companies in the Retail - Cyclical industry, placing it in the top 54.6%.
Is The Home Depot's 3-Year FCF Growth Rate too high?
The Home Depot's current 3-Year FCF Growth Rate of 4.30% is 65% below median its 10-year median of 12.40. The Retail - Cyclical industry median 3-Year FCF Growth Rate is 7.90. The Home Depot's value of 4.30% is 45.6% below this industry median. Based on the distribution chart, The Home Depot ranks #401 out of 735 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, The Home Depot has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Home Depot's 3-Year FCF Growth Rate compare to LOW and FND?
According to the Retail - Cyclical industry distribution chart, The Home Depot ranks #401 out of 735 companies for 3-Year FCF Growth Rate. This places The Home Depot in the lower half of its industry. The industry median 3-Year FCF Growth Rate is 7.90. The Home Depot's value of 4.30% is 45.6% below this benchmark. While the company's 10-year median is 12.40 vs. the industry median of 7.90, The Home Depot has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year FCF Growth Rate for a Retail - Cyclical company?
The median 3-Year FCF Growth Rate among Retail - Cyclical companies is 7.90, based on 735 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year FCF Growth Rate significantly above this median, while those in the bottom quartile fall well below. However, 3-Year FCF Growth Rate should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Home Depot's current 3-Year FCF Growth Rate of 4.30% is 45.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year FCF Growth Rate mean?
A high 3-Year FCF Growth Rate can signal that a stock is expensive relative to its fundamentals. 3-Year FCF Growth Rate is the 3-year average growth rate of Free Cash Flow per Share. View historical data for The Home Depot and its competitors. For the Retail - Cyclical industry, the median 3-Year FCF Growth Rate is 7.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Home Depot's current 3-Year FCF Growth Rate is 4.30%, which is 65% below median its own 10-year median of 12.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Home Depot stock overvalued right now?
Based on GuruFocus' analysis, The Home Depot (XSWX:HD) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF313.54, compared to a current price of CHF251.20 — trading 19.9% below its estimated fair value. The current 3-Year FCF Growth Rate is 4.30%, which is 65% below median its 10-year median of 12.40 and 45.6% below the Retail - Cyclical industry median of 7.90. The Home Depot's overall GF Score™ is 85/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year FCF Growth Rate calculated?
3-Year FCF Growth Rate is calculated from a company's financial statements. For The Home Depot (XSWX:HD), the current 3-Year FCF Growth Rate is 4.30% as of Jul. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Home Depot (XSWX:HD) Overvalued in 2026?
Based on GuruFocus' analysis, The Home Depot stock appears to be undervalued.
The current stock price of CHF251.20 is trading 19.9% below its estimated GF Value™ of CHF313.54.
GuruFocus considers The Home Depot to be Modestly Undervalued.
Key valuation signals for XSWX:HD:
3-Year FCF Growth Rate: 4.30% (65% below median its 10-year median of 12.40)
GF Value™: CHF313.54 vs. price of CHF251.20 (19.9% below fair value)
Industry Position: 45.6% below the Retail - Cyclical median (#401 of 735)
No single metric tells the full story. See the XSWX:HD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Home Depot is the world's largest home improvement specialty retailer, operating 2,361 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the US, Canada, and Mexico. Its stores offer building materials, home improvement products, lawn and garden products, and decor products and provide various services, including home improvement installation services and tool and equipment rentals. The acquisition of Interline Brands in 2015 allowed Home Depot to enter the MRO business, which has been expanded through the tie-up with HD Supply (2020). The 2024 tie-up with SRS will help grow professional demand in roofing, pool, and landscaping projects, while the 2025 purchase of GMS will lift building product sales through 1,250 distribution locations.
85GF Score
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