The Home DepotXSWX:HD -0.82%83 FCF Yield % is 4.42 as of Jun. 24, 2026, which is 4% below its 10-year median of 4.59. GuruFocus rates XSWX:HD with a GF Score™ of 83/100 and a GF Value™ of CHF312.72. The stock has 3 warning signs investors should review. Among 1,127 Retail - Cyclical companies, The Home Depot ranks better than 50.84% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
The Home Depot FCF Yield % Related Terms
The Home Depot FCF Yield % Historical Data
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The historical data trend for The Home Depot's FCF Yield % 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 FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's FCF Yield % distribution charts can be found below:
* The bar in red indicates where The Home Depot's FCF Yield % 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 FCF Yield % of 4.42 as of Jun. 24, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on The Home Depot and its competitors. This is near median its historical median of 4.59. Over the past decade, The Home Depot's FCF Yield % has ranged from 2.77 to 6.65. According to the industry distribution chart, The Home Depot ranks #554 out of 1127 companies in the Retail - Cyclical industry, placing it in the top 49.2%.
Is The Home Depot's FCF Yield % too high?
The Home Depot's current FCF Yield % of 4.42 is near median its 10-year median of 4.59. Over the past 10 years, this metric has ranged from a low of 2.77 to a high of 6.65. The Retail - Cyclical industry median FCF Yield % is 4.15. The Home Depot's value of 4.42 is 6.5% above this industry median. Based on the distribution chart, The Home Depot ranks #554 out of 1127 companies in the Retail - Cyclical industry, which is above 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 FCF Yield % compare to LOW and FND?
According to the Retail - Cyclical industry distribution chart, The Home Depot ranks #554 out of 1127 companies for FCF Yield %. This puts The Home Depot in the upper half of its industry. The industry median FCF Yield % is 4.15. The Home Depot's value of 4.42 is 6.5% above this benchmark. Historically, The Home Depot's own FCF Yield % has ranged from 2.77 to 6.65 over the past decade. While the company's 10-year median is 4.59 vs. the industry median of 4.15, 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 FCF Yield % for a Retail - Cyclical company?
The median FCF Yield % among Retail - Cyclical companies is 4.15, based on 1,127 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Home Depot's current FCF Yield % of 4.42 is 6.5% 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on The Home Depot and its competitors. For the Retail - Cyclical industry, the median FCF Yield % is 4.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Home Depot's current FCF Yield % is 4.42, which is near median its own 10-year median of 4.59. 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 FCF Yield % of 4.42. The stock's GF Value™ is CHF312.72, compared to a current price of CHF266.14 — trading 14.9% below its estimated fair value. The current FCF Yield % is 4.42, which is near median its 10-year median of 4.59 and 6.5% above the Retail - Cyclical industry median of 4.15. 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 FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For The Home Depot (XSWX:HD), the current FCF Yield % is 4.42 as of Jun. 24, 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 CHF266.14 is trading 14.9% below its estimated GF Value™ of CHF312.72.
Key valuation signals for XSWX:HD:
FCF Yield %: 4.42 (near median its 10-year median of 4.59)
GF Value™: CHF312.72 vs. price of CHF266.14 (14.9% below fair value)
Industry Position: 6.5% above the Retail - Cyclical median (#554 of 1127)
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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