The Home DepotXSWX:HD +0.09%83 Cyclically Adjusted PS Ratio is 2.45 as of Jul. 04, 2026, which is 15% below its 10-year median of 2.89. GuruFocus rates XSWX:HD with a GF Score™ of 83/100 and a GF Value™ of CHF303.97. The stock has 3 warning signs investors should review. Among 796 Retail - Cyclical companies, The Home Depot ranks worse than 86.18% on this metric.
The historical rank and industry rank for The Home Depot's Cyclically Adjusted PS Ratio or its related term are showing as below:
XSWX:HD'
s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 1.98 Med: 2.89 Max: 4.48
Current: 2.38
During the past years, The Home Depot's highest Cyclically Adjusted PS Ratio was 4.48. The lowest was 1.98. And the median was 2.89.
XSWX:HD's Cyclically Adjusted PS Ratio is ranked worse than 86.18% of 796
companies
in the Retail - Cyclical industry
Industry Median: 0.49
vs XSWX:HD: 2.38
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 PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.
The Home Depot's adjusted revenue per share data for the three months ended in Apr. 2026 was CHF33.026. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is CHF116.56 for the trailing ten years ended in Apr. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
The Home Depot (XSWX:HD) Cyclically Adjusted PS Ratio Explanation
Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue 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 PS Ratio should give similar results to regular PS Ratio.
The Home Depot Cyclically Adjusted PS Ratio Related Terms
The Home Depot Cyclically Adjusted PS Ratio Historical Data
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The historical data trend for The Home Depot's Cyclically Adjusted PS Ratio 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.
XSWX:HD vs LOW, FND, HVT: Cyclically Adjusted PS Ratio Comparison
For the Home Improvement Retail subindustry, The Home Depot's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio 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 Cyclically Adjusted PS Ratio vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's Cyclically Adjusted PS Ratio distribution charts can be found below:
* The bar in red indicates where The Home Depot's Cyclically Adjusted PS Ratio falls into.
The Home Depot Cyclically Adjusted PS Ratio Calculation
Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS 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 PS Ratio.
The Home Depot's Cyclically Adjusted PS Ratio for today is calculated as
* 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.
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.
What does a Cyclically Adjusted PS Ratio of 2.45 mean?
The Home Depot (XSWX:HD) has a Cyclically Adjusted PS Ratio of 2.45 as of Jul. 04, 2026. Cyclically Adjusted PS Ratio is the ratio of share price to a company's inflation-adjusted revenue per share over a 10-year period. View historical data on The Home Depot and its competitors. This is 15% below median its historical median of 2.89. Over the past decade, The Home Depot's Cyclically Adjusted PS Ratio has ranged from 1.98 to 4.48. According to the industry distribution chart, The Home Depot ranks #686 out of 796 companies in the Retail - Cyclical industry, placing it in the top 86.2%.
Is The Home Depot's Cyclically Adjusted PS Ratio too high?
The Home Depot's current Cyclically Adjusted PS Ratio of 2.45 is 15% below median its 10-year median of 2.89. Over the past 10 years, this metric has ranged from a low of 1.98 to a high of 4.48. The Retail - Cyclical industry median Cyclically Adjusted PS Ratio is 0.49. The Home Depot's value of 2.45 is 400% above this industry median. Based on the distribution chart, The Home Depot ranks #686 out of 796 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, The Home Depot has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does The Home Depot's Cyclically Adjusted PS Ratio compare to LOW and FND?
According to the Retail - Cyclical industry distribution chart, The Home Depot ranks #686 out of 796 companies for Cyclically Adjusted PS Ratio. This places The Home Depot in the lower half of its industry. The industry median Cyclically Adjusted PS Ratio is 0.49. The Home Depot's value of 2.45 is 400% above this benchmark. Historically, The Home Depot's own Cyclically Adjusted PS Ratio has ranged from 1.98 to 4.48 over the past decade. While the company's 10-year median is 2.89 vs. the industry median of 0.49, The Home Depot has consistently been above 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 Cyclically Adjusted PS Ratio for a Retail - Cyclical company?
The median Cyclically Adjusted PS Ratio among Retail - Cyclical companies is 0.49, based on 796 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted PS Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted PS Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Home Depot's current Cyclically Adjusted PS Ratio of 2.45 is 400% above 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 Cyclically Adjusted PS Ratio mean?
A high Cyclically Adjusted PS Ratio can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted PS Ratio is the ratio of share price to a company's inflation-adjusted revenue per share over a 10-year period. View historical data on The Home Depot and its competitors. For the Retail - Cyclical industry, the median Cyclically Adjusted PS Ratio is 0.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Home Depot's current Cyclically Adjusted PS Ratio is 2.45, which is 15% below median its own 10-year median of 2.89. 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?
The Home Depot (XSWX:HD) has a current Cyclically Adjusted PS Ratio of 2.45. The stock's GF Value™ is CHF303.97, compared to a current price of CHF285.10 — trading 6.2% below its estimated fair value. The current Cyclically Adjusted PS Ratio is 2.45, which is 15% below median its 10-year median of 2.89 and 400% above the Retail - Cyclical industry median of 0.49. The Home Depot's overall GF Score™ is 83/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted PS Ratio calculated?
Cyclically Adjusted PS Ratio is calculated from a company's financial statements. For The Home Depot (XSWX:HD), the current Cyclically Adjusted PS Ratio is 2.45 as of Jul. 04, 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 CHF285.10 is trading 6.2% below its estimated GF Value™ of CHF303.97.
Key valuation signals for XSWX:HD:
Cyclically Adjusted PS Ratio: 2.45 (15% below median its 10-year median of 2.89)
GF Value™: CHF303.97 vs. price of CHF285.10 (6.2% below fair value)
Industry Position: 400% above the Retail - Cyclical median (#686 of 796)
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.
83GF Score
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