The Home DepotXSWX:HD +0.80%83 PEG Ratio is 5.90 as of Jun. 28, 2026, which is 276% above its 10-year median of 1.57. 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 413 Retail - Cyclical companies, The Home Depot ranks worse than 85.71% on this metric.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for The Home Depot's PEG Ratio or its related term are showing as below:
XSWX:HD'
s PEG Ratio Range Over the Past 10 Years
Min: 1.01 Med: 1.57 Max: 13.76
Current: 5.84
During the past 13 years, The Home Depot's highest PEG Ratio was 13.76. The lowest was 1.01. And the median was 1.57.
XSWX:HD's PEG Ratio is ranked worse than 85.71% of 413
companies
in the Retail - Cyclical industry
Industry Median: 1.3
vs XSWX:HD: 5.84
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
The Home Depot (XSWX:HD) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
The Home Depot PEG Ratio Related Terms
The Home Depot PEG Ratio Historical Data
* Premium members only.
The historical data trend for The Home Depot's PEG 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.
For the Home Improvement Retail subindustry, The Home Depot's PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's PEG Ratio distribution charts can be found below:
* The bar in red indicates where The Home Depot's PEG Ratio 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The Home Depot (XSWX:HD) has a PEG Ratio of 5.90 as of Jun. 28, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on The Home Depot and its competitors. This is 276% above median its historical median of 1.57. Over the past decade, The Home Depot's PEG Ratio has ranged from 1.01 to 13.76. According to the industry distribution chart, The Home Depot ranks #354 out of 413 companies in the Retail - Cyclical industry, placing it in the top 85.7%.
Is The Home Depot's PEG Ratio too high?
The Home Depot's current PEG Ratio of 5.90 is 276% above median its 10-year median of 1.57. Over the past 10 years, this metric has ranged from a low of 1.01 to a high of 13.76. The Retail - Cyclical industry median PEG Ratio is 1.30. The Home Depot's value of 5.90 is 353.8% above this industry median. Based on the distribution chart, The Home Depot ranks #354 out of 413 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 PEG Ratio compare to LOW and FND?
According to the Retail - Cyclical industry distribution chart, The Home Depot ranks #354 out of 413 companies for PEG Ratio. This places The Home Depot in the lower half of its industry. The industry median PEG Ratio is 1.30. The Home Depot's value of 5.90 is 353.8% above this benchmark. Historically, The Home Depot's own PEG Ratio has ranged from 1.01 to 13.76 over the past decade. While the company's 10-year median is 1.57 vs. the industry median of 1.30, 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 PEG Ratio for a Retail - Cyclical company?
The median PEG Ratio among Retail - Cyclical companies is 1.30, based on 413 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Home Depot's current PEG Ratio of 5.90 is 353.8% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on The Home Depot and its competitors. For the Retail - Cyclical industry, the median PEG Ratio is 1.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Home Depot's current PEG Ratio is 5.90, which is 276% above median its own 10-year median of 1.57. 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 PEG Ratio of 5.90. 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 PEG Ratio is 5.90, which is 276% above median its 10-year median of 1.57 and 353.8% above the Retail - Cyclical industry median of 1.30. 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 PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For The Home Depot (XSWX:HD), the current PEG Ratio is 5.90 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:
PEG Ratio: 5.90 (276% above median its 10-year median of 1.57)
GF Value™: CHF305.97 vs. price of CHF279.94 (8.5% below fair value)
Industry Position: 353.8% above the Retail - Cyclical median (#354 of 413)
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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