The Home Depot (HAM:HDI) Margin of Safety % (DCF Earnings Based): -29.00% (As of Jun. 24, 2026)


HAM:HDI The Home Depot Inc HAM:HDI
83 GF Score
Price €286.50
GF Value €336.64
Valuation Modestly Undervalued
! 3 Warning Signs
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What is The Home Depot Margin of Safety % (DCF Earnings Based)?

The Home Depot HAM:HDI -1.00% 83 Margin of Safety % (DCF Earnings Based) is -29.00% as of Jun. 24, 2026. GuruFocus rates HAM:HDI with a GF Score™ of 83/100 and a GF Value™ of €336.64 (Modestly Undervalued). The stock has 3 warning signs investors should review.

Margin of Safety % (DCF Earnings Based) = (Intrinsic Value: DCF (Earnings Based) - Current Price) / Intrinsic Value: DCF (Earnings Based).

Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-06-24), The Home Depot's Predictability Rank is 3.5-Stars. The Home Depot's intrinsic value calculated from the Discounted Earnings model is €222.10 and current share price is €286.50. Consequently,

The Home Depot's Margin of Safety % (DCF Earnings Based) using Discounted Earnings model is -29.00%.

HAM:HDI vs LOW, FND, HVT: Margin of Safety % (DCF Earnings Based) Comparison

For the Home Improvement Retail subindustry, The Home Depot's Margin of Safety % (DCF Earnings Based), along with its competitors' market caps and Margin of Safety % (DCF Earnings Based) 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 Margin of Safety % (DCF Earnings Based) vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's Margin of Safety % (DCF Earnings Based) distribution charts can be found below:

* The bar in red indicates where The Home Depot's Margin of Safety % (DCF Earnings Based) falls into.


HAM:HDI
83GF Score
The Home Depot Inc HAM:HDI
Margin of Safety % (DCF Earnings Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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The Home Depot Margin of Safety % (DCF Earnings Based) Calculation

The Home Depot's Margin of Safety % (DCF Earnings Based) for today is calculated as

Margin of Safety % (DCF Earnings Based)=(Intrinsic Value: DCF (Earnings Based)-Current Price)/Intrinsic Value: DCF (Earnings Based)
=(222.10-286.50)/222.10
=-29.00 %

* 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 intrinsic value is calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow.

What does a Margin of Safety % (DCF Earnings Based) of -29.00% mean?
The Home Depot (HAM:HDI) has a Margin of Safety % (DCF Earnings Based) of -29.00% as of Jun. 24, 2026. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on The Home Depot.
Is The Home Depot's Margin of Safety % (DCF Earnings Based) too high?
The Home Depot's current Margin of Safety % (DCF Earnings Based) is -29.00%. Overall, The Home Depot has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Home Depot's Margin of Safety % (DCF Earnings Based) compare to LOW and FND?
The Home Depot's Margin of Safety % (DCF Earnings Based) of -29.00% can be compared against companies in the Retail - Cyclical industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF Earnings Based) for a Retail - Cyclical company?
A good Margin of Safety % (DCF Earnings Based) depends on the Retail - Cyclical industry context. However, Margin of Safety % (DCF Earnings Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Margin of Safety % (DCF Earnings Based) mean?
A high Margin of Safety % (DCF Earnings Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on The Home Depot. The Home Depot's current Margin of Safety % (DCF Earnings Based) is -29.00%. 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 (HAM:HDI) is currently considered Modestly Undervalued. The stock's GF Value™ is €336.64, compared to a current price of €286.50 — trading 14.9% below its estimated fair value. The current Margin of Safety % (DCF Earnings Based) is -29.00%. 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 Margin of Safety % (DCF Earnings Based) calculated?
Margin of Safety % (DCF Earnings Based) is calculated from a company's financial statements. For The Home Depot (HAM:HDI), the current Margin of Safety % (DCF Earnings Based) is -29.00% 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 (HAM:HDI) Overvalued in 2026?

Based on GuruFocus' analysis, The Home Depot stock appears to be undervalued. The current stock price of €286.50 is trading 14.9% below its estimated GF Value™ of €336.64. GuruFocus considers The Home Depot to be Modestly Undervalued.

Key valuation signals for HAM:HDI:

  • Margin of Safety % (DCF Earnings Based): -29.00%
  • GF Value™: €336.64 vs. price of €286.50 (14.9% below fair value)
  • GF Score™: 83/100 with 3 warning signs

No single metric tells the full story. See the HAM:HDI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

The Home Depot Business Description

Address 2455 Paces Ferry Road, Atlanta, GA, USA, 30339
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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Margin of Safety % (DCF Earnings Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€286.50
Price
€336.64
GF Value