GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » The Home Depot Inc (WBO:HD) » Definitions » Cyclically Adjusted PS Ratio

The Home Depot (WBO:HD) Cyclically Adjusted PS Ratio : 2.72 (As of Apr. 28, 2024)


View and export this data going back to 2017. Start your Free Trial

What is The Home Depot Cyclically Adjusted PS Ratio?

As of today (2024-04-28), The Home Depot's current share price is €312.60. The Home Depot's Cyclically Adjusted Revenue per Share for the quarter that ended in Jan. 2024 was €114.73. The Home Depot's Cyclically Adjusted PS Ratio for today is 2.72.

The historical rank and industry rank for The Home Depot's Cyclically Adjusted PS Ratio or its related term are showing as below:

WBO:HD' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 1.62   Med: 2.77   Max: 4.48
Current: 2.73

During the past years, The Home Depot's highest Cyclically Adjusted PS Ratio was 4.48. The lowest was 1.62. And the median was 2.77.

WBO:HD's Cyclically Adjusted PS Ratio is ranked worse than
90.16% of 752 companies
in the Retail - Cyclical industry
Industry Median: 0.48 vs WBO:HD: 2.73

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 Jan. 2024 was €32.159. 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 €114.73 for the trailing ten years ended in Jan. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


The Home Depot Cyclically Adjusted PS Ratio Historical Data

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.

* Premium members only.

The Home Depot Cyclically Adjusted PS Ratio Chart

The Home Depot Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.13 3.33 3.81 2.90 2.88

The Home Depot Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Cyclically Adjusted PS Ratio 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 2.90 2.61 2.82 2.35 2.88

Competitive Comparison of The Home Depot's Cyclically Adjusted PS Ratio

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's Cyclically Adjusted PS Ratio Distribution in the 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

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=312.60/114.73
=2.72

* 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 Revenue per Share for the quarter that ended in Jan. 2024 is calculated as:

For example, The Home Depot's adjusted Revenue per Share data for the three months ended in Jan. 2024 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=32.159/129.4194*129.4194
=32.159

Current CPI (Jan. 2024) = 129.4194.

The Home Depot Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201404 10.359 100.023 13.403
201407 13.005 100.520 16.744
201410 12.134 100.176 15.676
201501 12.537 98.604 16.455
201504 14.792 99.824 19.178
201507 17.509 100.691 22.505
201510 15.260 100.346 19.681
201601 15.311 99.957 19.824
201604 16.017 100.947 20.535
201607 19.320 101.524 24.629
201610 17.106 101.988 21.707
201701 17.252 102.456 21.792
201704 18.510 103.167 23.220
201707 20.496 103.278 25.684
201710 18.141 104.070 22.560
201801 16.796 104.578 20.786
201804 17.558 105.708 21.496
201807 22.695 106.324 27.625
201810 20.055 106.695 24.326
201901 20.683 106.200 25.205
201904 21.229 107.818 25.482
201907 25.030 108.250 29.925
201910 22.495 108.577 26.813
202001 21.351 108.841 25.388
202004 24.140 108.173 28.881
202007 30.739 109.318 36.391
202010 26.443 109.861 31.151
202101 24.570 110.364 28.812
202104 29.163 112.673 33.497
202107 32.755 115.183 36.803
202110 30.141 116.696 33.427
202201 30.274 118.619 33.030
202204 34.844 121.978 36.970
202207 41.998 125.002 43.482
202210 38.568 125.734 39.698
202301 32.728 126.223 33.557
202304 33.542 127.992 33.916
202307 38.680 128.974 38.813
202310 35.747 129.810 35.640
202401 32.159 129.419 32.159

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue 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  (WBO: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

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


The Home Depot (WBO:HD) 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 (WBO:HD) Headlines

From GuruFocus

Q2 2021 Home Depot Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Home Depot Inc ESG Webcast Transcript

By GuruFocus Research 01-23-2024

Q3 2022 Home Depot Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q2 2023 Home Depot Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q4 2022 Home Depot Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Home Depot Inc Annual Shareholders Meeting Transcript

By GuruFocus Research 01-23-2024