The Home Depot (XSWX:HD) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
The Home Depot Forward PE Ratio Related Terms
The Home Depot Forward PE Ratio Historical Data
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The historical data trend for The Home Depot's Forward PE 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.
The Home Depot Forward PE Ratio Chart
The Home Depot Annual Data
Trend
2016-01
2017-01
2018-01
2019-01
2020-01
2021-01
2026-01
Forward PE Ratio
20.04
17.64
23.42
17.15
20.16
18.55
25.79
The Home Depot Quarterly Data
2016-01
2016-04
2016-07
2016-10
2017-01
2017-07
2017-10
2018-01
2018-04
2018-07
2018-10
2019-01
2019-04
2019-07
2019-10
2020-01
2020-04
2020-07
2020-10
2021-01
2021-04
2026-01
2026-04
Forward PE Ratio
20.04
21.23
21.79
17.95
17.64
20.37
20.58
23.42
18.12
20.83
17.48
17.15
20.04
20.41
18.80
20.16
21.88
22.08
19.05
18.55
17.42
25.79
22.60
XSWX:HD vs LOW, FND, HVT: Forward PE Ratio Comparison
For the Home Improvement Retail subindustry, The Home Depot's Forward PE Ratio, along with its competitors' market caps and Forward PE 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 Forward PE Ratio vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where The Home Depot's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
The Home Depot (XSWX:HD) has a Forward PE Ratio of 23.83 as of Jul. 05, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on The Home Depot and its competitors. According to the industry distribution chart, The Home Depot ranks #383 out of 501 companies in the Retail - Cyclical industry, placing it in the top 76.4%.
Is The Home Depot's Forward PE Ratio too high?
The Home Depot's current Forward PE Ratio is 23.83. The Retail - Cyclical industry median Forward PE Ratio is 15.01. The Home Depot's value of 23.83 is 58.8% above this industry median. Based on the distribution chart, The Home Depot ranks #383 out of 501 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 Forward PE Ratio compare to LOW and FND?
According to the Retail - Cyclical industry distribution chart, The Home Depot ranks #383 out of 501 companies for Forward PE Ratio. This places The Home Depot in the lower half of its industry. The industry median Forward PE Ratio is 15.01. The Home Depot's value of 23.83 is 58.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Retail - Cyclical company?
The median Forward PE Ratio among Retail - Cyclical companies is 15.01, based on 501 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Home Depot's current Forward PE Ratio of 23.83 is 58.8% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on The Home Depot and its competitors. For the Retail - Cyclical industry, the median Forward PE Ratio is 15.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Home Depot's current Forward PE Ratio is 23.83. 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 Forward PE Ratio of 23.83. The stock's GF Value™ is CHF303.97, compared to a current price of CHF285.10 — trading 6.2% below its estimated fair value. The current Forward PE Ratio is 23.83 and 58.8% above the Retail - Cyclical industry median of 15.01. 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 Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For The Home Depot (XSWX:HD), the current Forward PE Ratio is 23.83 as of Jul. 05, 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 CHF285.10 is trading 6.2% below its estimated GF Value™ of CHF303.97.
Key valuation signals for XSWX:HD:
Forward PE Ratio: 23.83
GF Value™: CHF303.97 vs. price of CHF285.10 (6.2% below fair value)
Industry Position: 58.8% above the Retail - Cyclical median (#383 of 501)
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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Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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