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The Home DepotXSWX:HD +1.14%83 Debt-to-Equity is 4.55 as of Apr. 2026, which is 53% below its 10-year median of 9.72. GuruFocus rates XSWX:HD with a GF Score™ of 83/100 and a GF Value™ of CHF307.04. The stock has 3 warning signs investors should review. Among 1,014 Retail - Cyclical companies, The Home Depot ranks worse than 95.27% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for The Home Depot's Debt-to-Equity or its related term are showing as below:
XSWX:HD'
s Debt-to-Equity Range Over the Past 10 Years
Min: -98 Med: 9.72 Max: 199.91
Current: 4.55
During the past 13 years, the highest Debt-to-Equity Ratio of The Home Depot was 199.91. The lowest was -98.00. And the median was 9.72.
XSWX:HD's Debt-to-Equity is ranked worse than 95.27% of 1014
companies
in the Retail - Cyclical industry
Industry Median: 0.56
vs XSWX:HD: 4.55
The Home Depot (XSWX:HD) Debt-to-Equity Explanation
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
The Home Depot Debt-to-Equity Related Terms
The Home Depot Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for The Home Depot's Debt-to-Equity 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-Equity Comparison
For the Home Improvement Retail subindustry, The Home Depot's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where The Home Depot's Debt-to-Equity 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.
The Home Depot (XSWX:HD) has a Debt-to-Equity of 4.55 as of Apr. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on The Home Depot and its competitors. This is 53% below median its historical median of 9.72. According to the industry distribution chart, The Home Depot ranks #966 out of 1014 companies in the Retail - Cyclical industry, placing it in the top 95.3%.
Is The Home Depot's Debt-to-Equity too high?
The Home Depot's current Debt-to-Equity of 4.55 is 53% below median its 10-year median of 9.72. The Retail - Cyclical industry median Debt-to-Equity is 0.56. The Home Depot's value of 4.55 is 712.5% above this industry median. Based on the distribution chart, The Home Depot ranks #966 out of 1014 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 Debt-to-Equity compare to LOW and FND?
According to the Retail - Cyclical industry distribution chart, The Home Depot ranks #966 out of 1014 companies for Debt-to-Equity. This places The Home Depot in the lower half of its industry. The industry median Debt-to-Equity is 0.56. The Home Depot's value of 4.55 is 712.5% above this benchmark. While the company's 10-year median is 9.72 vs. the industry median of 0.56, 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-Equity for a Retail - Cyclical company?
The median Debt-to-Equity among Retail - Cyclical companies is 0.56, based on 1,014 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Home Depot's current Debt-to-Equity of 4.55 is 712.5% 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-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on The Home Depot and its competitors. For the Retail - Cyclical industry, the median Debt-to-Equity is 0.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Home Depot's current Debt-to-Equity is 4.55, which is 53% below median its own 10-year median of 9.72. 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-Equity of 4.55. The stock's GF Value™ is CHF307.04, compared to a current price of CHF276.05 — trading 10.1% below its estimated fair value. The current Debt-to-Equity is 4.55, which is 53% below median its 10-year median of 9.72 and 712.5% above the Retail - Cyclical industry median of 0.56. 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-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For The Home Depot (XSWX:HD), the current Debt-to-Equity is 4.55 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 CHF276.05 is trading 10.1% below its estimated GF Value™ of CHF307.04.
Key valuation signals for XSWX:HD:
Debt-to-Equity: 4.55 (53% below median its 10-year median of 9.72)
GF Value™: CHF307.04 vs. price of CHF276.05 (10.1% below fair value)
Industry Position: 712.5% above the Retail - Cyclical median (#966 of 1014)
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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