The Home Depot (XSWX:HD) Moat Score: 8/10 (As of Jun. 28, 2026)


XSWX:HD The Home Depot Inc XSWX:HD
83 GF Score
Price CHF279.94
GF Value CHF305.97
! 3 Warning Signs
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What is The Home Depot Moat Score?

The Home Depot XSWX:HD +0.80% 83 Moat Score is 8 as of Jun. 28, 2026. GuruFocus rates XSWX:HD with a GF Score™ of 83/100 and a GF Value™ of CHF305.97. The stock has 3 warning signs investors should review. Among 1,118 Retail - Cyclical companies, The Home Depot ranks better than 99.64% on this metric.

The Home Depot has the Moat Score of 8, which implies that the company might have Wide Moat - Clear and robust wide moat.

The Home Depot has Wide Moat: The Home Depot Inc has a dominant market position with strong brand loyalty and extensive distribution networks. It benefits from economies of scale and significant pricing power. The company's durable cost advantages and customer loyalty contribute to its robust wide moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes The Home Depot might have Wide Moat - Clear and robust wide moat.

The Home Depot  (XSWX:HD) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

The Home Depot Moat Score Related Terms

XSWX:HD vs LOW, FND, HVT: Moat Score Comparison

For the Home Improvement Retail subindustry, The Home Depot's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's Moat Score distribution charts can be found below:

* The bar in red indicates where The Home Depot's Moat Score falls into.


XSWX:HD
83GF Score
The Home Depot Inc XSWX:HD
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 8 mean?
The Home Depot (XSWX:HD) has a Moat Score of 8 as of Jun. 28, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, The Home Depot ranks #4 out of 1118 companies in the Retail - Cyclical industry, placing it in the top 0.40000000000001%.
Is The Home Depot's Moat Score too high?
The Home Depot's current Moat Score is 8. Based on the distribution chart, The Home Depot ranks #4 out of 1118 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position 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 Moat Score compare to LOW and FND?
According to the Retail - Cyclical industry distribution chart, The Home Depot ranks #4 out of 1118 companies for Moat Score. This places The Home Depot in the top 0% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Retail - Cyclical company?
A good Moat Score depends on the Retail - Cyclical industry context. However, Moat Score 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 Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. The Home Depot's current Moat Score is 8. 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 Moat Score of 8. The stock's GF Value™ is CHF305.97, compared to a current price of CHF279.94 — trading 8.5% below its estimated fair value. The current Moat Score is 8. 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 Moat Score calculated?
Moat Score is calculated from a company's financial statements. For The Home Depot (XSWX:HD), the current Moat Score is 8 as of Jun. 28, 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 CHF279.94 is trading 8.5% below its estimated GF Value™ of CHF305.97.

Key valuation signals for XSWX:HD:

  • Moat Score: 8
  • GF Value™: CHF305.97 vs. price of CHF279.94 (8.5% below fair value)
  • GF Score™: 83/100 with 3 warning signs

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.

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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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF279.94
Price
CHF305.97
GF Value