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The Home Depot (BSP:HOME34) Cyclically Adjusted Price-to-FCF : 26.73 (As of May. 21, 2024)


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What is The Home Depot Cyclically Adjusted Price-to-FCF?

As of today (2024-05-21), The Home Depot's current share price is R$61.22. The Home Depot's Cyclically Adjusted FCF per Share for the quarter that ended in Apr. 2024 was R$2.29. The Home Depot's Cyclically Adjusted Price-to-FCF for today is 26.73.

The historical rank and industry rank for The Home Depot's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

BSP:HOME34' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 24.07   Med: 35.84   Max: 46.78
Current: 27.75

During the past years, The Home Depot's highest Cyclically Adjusted Price-to-FCF was 46.78. The lowest was 24.07. And the median was 35.84.

BSP:HOME34's Cyclically Adjusted Price-to-FCF is ranked worse than
75.4% of 435 companies
in the Retail - Cyclical industry
Industry Median: 12.83 vs BSP:HOME34: 27.75

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

The Home Depot's adjusted free cash flow per share data for the three months ended in Apr. 2024 was R$0.859. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is R$2.29 for the trailing ten years ended in Apr. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


The Home Depot Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for The Home Depot's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Home Depot Cyclically Adjusted Price-to-FCF Chart

The Home Depot Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 36.08 35.18 39.86 31.03 29.41

The Home Depot Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 27.72 29.41 24.34 29.41 26.95

Competitive Comparison of The Home Depot's Cyclically Adjusted Price-to-FCF

For the Home Improvement Retail subindustry, The Home Depot's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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's Cyclically Adjusted Price-to-FCF Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where The Home Depot's Cyclically Adjusted Price-to-FCF falls into.



The Home Depot Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

The Home Depot's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=61.22/2.29
=26.73

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The Home Depot's Cyclically Adjusted FCF per Share for the quarter that ended in Apr. 2024 is calculated as:

For example, The Home Depot's adjusted Free Cash Flow per Share data for the three months ended in Apr. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Apr. 2024 (Change)*Current CPI (Apr. 2024)
=0.859/131.7762*131.7762
=0.859

Current CPI (Apr. 2024) = 131.7762.

The Home Depot Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201407 0.139 100.520 0.182
201410 0.039 100.176 0.051
201501 0.111 98.604 0.148
201504 0.257 99.824 0.339
201507 0.192 100.691 0.251
201510 0.115 100.346 0.151
201601 0.182 99.957 0.240
201604 0.337 100.947 0.440
201607 0.271 101.524 0.352
201610 0.055 101.988 0.071
201701 0.131 102.456 0.168
201704 0.382 103.167 0.488
201707 0.280 103.278 0.357
201710 0.133 104.070 0.168
201801 0.172 104.578 0.217
201804 0.360 105.708 0.449
201807 0.403 106.324 0.499
201810 0.178 106.695 0.220
201901 0.285 106.200 0.354
201904 0.507 107.818 0.620
201907 0.401 108.250 0.488
201910 0.214 108.577 0.260
202001 0.287 108.841 0.347
202004 0.908 108.173 1.106
202007 1.512 109.318 1.823
202010 0.394 109.861 0.473
202101 0.083 110.364 0.099
202104 1.070 112.673 1.251
202107 0.541 115.183 0.619
202110 0.516 116.696 0.583
202201 0.446 118.619 0.495
202204 0.507 121.978 0.548
202207 0.496 125.002 0.523
202210 0.380 125.734 0.398
202301 0.674 126.223 0.704
202304 0.834 127.992 0.859
202307 0.991 128.974 1.013
202310 0.644 129.810 0.654
202401 0.685 130.124 0.694
202404 0.859 131.776 0.859

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


The Home Depot  (BSP:HOME34) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


The Home Depot Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of The Home Depot's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


The Home Depot (BSP:HOME34) Business Description

Address
2455 Paces Ferry Road, Atlanta, GA, USA, 30339
Home Depot is the world's largest home improvement specialty retailer, operating more than 2,300 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the United States, Canada, and Mexico. Its stores offer numerous 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 distributor Interline Brands in 2015 allowed Home Depot to enter the maintenance, repair, and operations business, which has been expanded through the tie-up with HD Supply (2020). Moreover, the additions of the Company Store brought textile exposure to the lineup, while Redi Carpet added multifamily flooring.

The Home Depot (BSP:HOME34) Headlines

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