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The Home DepotHD -1.81%85 EV-to-OCF is 21.78 as of Jul. 30, 2026, which is 6% above its 10-year median of 20.51. GuruFocus rates HD with a GF Score™ of 85/100 and a GF Value™ of $382.65 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,134 Retail - Cyclical companies, The Home Depot ranks worse than 82.36% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, The Home Depot's Enterprise Value is $392,758 Mil.
The Home Depot's Cash Flow from Operations for the trailing twelve months (TTM) ended in Apr. 2026 was $18,032 Mil. Therefore, The Home Depot's EV-to-OCF for today is 21.78.
The historical rank and industry rank for The Home Depot's EV-to-OCF or its related term are showing as below:
HD'
s EV-to-OCF Range Over the Past 10 Years
Min: 14.67 Med: 20.51 Max: 32.25
Current: 21.78
During the past 13 years, the highest EV-to-OCF of The Home Depot was 32.25. The lowest was 14.67. And the median was 20.51.
HD's EV-to-OCF is ranked worse than 82.36% of 1134
companies
in the Retail - Cyclical industry
Industry Median: 7.09
vs HD: 21.78
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
The Home Depot's PE Ratio (TTM) for today is calculated as:
The Home Depot's share price for today is $332.16.
The Home Depot's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $14.080.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
The Home Depot EV-to-OCF Related Terms
The Home Depot EV-to-OCF Historical Data
* Premium members only.
The historical data trend for The Home Depot's EV-to-OCF 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.
For the Home Improvement Retail subindustry, The Home Depot's EV-to-OCF, along with its competitors' market caps and EV-to-OCF 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 EV-to-OCF vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where The Home Depot's EV-to-OCF falls into.
The Home Depot's current Enterprise Value is $392,758 Mil.
The Home Depot's Cash Flow from Operations for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $18,032 Mil.
* 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 (HD) has a EV-to-OCF of 21.78 as of Jul. 30, 2026. This is near median its historical median of 20.51. Over the past decade, The Home Depot's EV-to-OCF has ranged from 14.67 to 32.25. According to the industry distribution chart, The Home Depot ranks #934 out of 1134 companies in the Retail - Cyclical industry, placing it in the top 82.4%.
Is The Home Depot's EV-to-OCF too high?
The Home Depot's current EV-to-OCF of 21.78 is near median its 10-year median of 20.51. Over the past 10 years, this metric has ranged from a low of 14.67 to a high of 32.25. The Retail - Cyclical industry median EV-to-OCF is 7.09. The Home Depot's value of 21.78 is 207.2% above this industry median. Based on the distribution chart, The Home Depot ranks #934 out of 1134 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, The Home Depot has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Home Depot's EV-to-OCF compare to LOW and FND?
According to the Retail - Cyclical industry distribution chart, The Home Depot ranks #934 out of 1134 companies for EV-to-OCF. This places The Home Depot in the lower half of its industry. The industry median EV-to-OCF is 7.09. The Home Depot's value of 21.78 is 207.2% above this benchmark. Historically, The Home Depot's own EV-to-OCF has ranged from 14.67 to 32.25 over the past decade. While the company's 10-year median is 20.51 vs. the industry median of 7.09, 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 EV-to-OCF for a Retail - Cyclical company?
The median EV-to-OCF among Retail - Cyclical companies is 7.09, based on 1,134 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Home Depot's current EV-to-OCF of 21.78 is 207.2% 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 EV-to-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Retail - Cyclical industry, the median EV-to-OCF is 7.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Home Depot's current EV-to-OCF is 21.78, which is near median its own 10-year median of 20.51. 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?
Based on GuruFocus' analysis, The Home Depot (HD) is currently considered Modestly Undervalued. The stock's GF Value™ is $382.65, compared to a current price of $332.16 — trading 13.2% below its estimated fair value. The current EV-to-OCF is 21.78, which is near median its 10-year median of 20.51 and 207.2% above the Retail - Cyclical industry median of 7.09. The Home Depot's overall GF Score™ is 85/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For The Home Depot (HD), the current EV-to-OCF is 21.78 as of Jul. 30, 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 (HD) Overvalued in 2026?
Based on GuruFocus' analysis, The Home Depot stock appears to be undervalued.
The current stock price of $332.16 is trading 13.2% below its estimated GF Value™ of $382.65.
GuruFocus considers The Home Depot to be Modestly Undervalued.
Key valuation signals for HD:
EV-to-OCF: 21.78 (near median its 10-year median of 20.51)
GF Value™: $382.65 vs. price of $332.16 (13.2% below fair value)
Industry Position: 207.2% above the Retail - Cyclical median (#934 of 1134)
No single metric tells the full story. See the 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.
85GF Score
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