The Home DepotXSWX:HD -3.09%83 Debt-to-EBITDA is 2.60 as of Apr. 2026, which is 33% above its 10-year median of 1.96. GuruFocus rates XSWX:HD with a GF Score™ of 83/100 and a GF Value™ of CHF318.11. The stock has 3 warning signs investors should review. Among 895 Retail - Cyclical companies, The Home Depot ranks worse than 52.96% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for The Home Depot's Debt-to-EBITDA or its related term are showing as below:
XSWX:HD'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.53 Med: 1.96 Max: 2.6
Current: 2.52
During the past 13 years, the highest Debt-to-EBITDA Ratio of The Home Depot was 2.60. The lowest was 1.53. And the median was 1.96.
XSWX:HD's Debt-to-EBITDA is ranked worse than 52.96% of 895
companies
in the Retail - Cyclical industry
Industry Median: 2.39
vs XSWX:HD: 2.52
The Home Depot (XSWX:HD) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The Home Depot Debt-to-EBITDA Related Terms
The Home Depot Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for The Home Depot's Debt-to-EBITDA 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: Debt-to-EBITDA Comparison
For the Home Improvement Retail subindustry, The Home Depot's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where The Home Depot's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Apr. 2026) EBITDA data.
The Home Depot (XSWX:HD) has a Debt-to-EBITDA of 2.60 as of Apr. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on The Home Depot. This is 33% above median its historical median of 1.96. Over the past decade, The Home Depot's Debt-to-EBITDA has ranged from 1.53 to 2.60. According to the industry distribution chart, The Home Depot ranks #474 out of 895 companies in the Retail - Cyclical industry, placing it in the top 53%.
Is The Home Depot's Debt-to-EBITDA too high?
The Home Depot's current Debt-to-EBITDA of 2.60 is 33% above median its 10-year median of 1.96. Over the past 10 years, this metric has ranged from a low of 1.53 to a high of 2.60. The Retail - Cyclical industry median Debt-to-EBITDA is 2.39. The Home Depot's value of 2.60 is 8.8% above this industry median. Based on the distribution chart, The Home Depot ranks #474 out of 895 companies in the Retail - Cyclical industry, which is below the industry midpoint. 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 Debt-to-EBITDA compare to LOW and FND?
According to the Retail - Cyclical industry distribution chart, The Home Depot ranks #474 out of 895 companies for Debt-to-EBITDA. This places The Home Depot in the lower half of its industry. The industry median Debt-to-EBITDA is 2.39. The Home Depot's value of 2.60 is 8.8% above this benchmark. Historically, The Home Depot's own Debt-to-EBITDA has ranged from 1.53 to 2.60 over the past decade. While the company's 10-year median is 1.96 vs. the industry median of 2.39, 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 Debt-to-EBITDA for a Retail - Cyclical company?
The median Debt-to-EBITDA among Retail - Cyclical companies is 2.39, based on 895 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Home Depot's current Debt-to-EBITDA of 2.60 is 8.8% 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on The Home Depot. For the Retail - Cyclical industry, the median Debt-to-EBITDA is 2.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Home Depot's current Debt-to-EBITDA is 2.60, which is 33% above median its own 10-year median of 1.96. 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 Debt-to-EBITDA of 2.60. The stock's GF Value™ is CHF318.11, compared to a current price of CHF271.50 — trading 14.7% below its estimated fair value. The current Debt-to-EBITDA is 2.60, which is 33% above median its 10-year median of 1.96 and 8.8% above the Retail - Cyclical industry median of 2.39. 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 Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For The Home Depot (XSWX:HD), the current Debt-to-EBITDA is 2.60 as of Apr. 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 CHF271.50 is trading 14.7% below its estimated GF Value™ of CHF318.11.
Key valuation signals for XSWX:HD:
Debt-to-EBITDA: 2.60 (33% above median its 10-year median of 1.96)
GF Value™: CHF318.11 vs. price of CHF271.50 (14.7% below fair value)
Industry Position: 8.8% above the Retail - Cyclical median (#474 of 895)
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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