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The Home Depot GF Value Rank

: 9 (As of Today)
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The Home Depot has the GF Value Rank of 9.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison

For the Home Improvement Retail subindustry, The Home Depot's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution

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

* The bar in red indicates where The Home Depot's GF Value Rank falls into.



The Home Depot GF Value Rank Related Terms

Thank you for viewing the detailed overview of The Home Depot's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


The Home Depot Business Description

The Home Depot logo
Address
2455 Paces Ferry Road, Atlanta, GA, USA, 30339
Home Depot is the world's largest home improvement specialty retailer, operating more than 2,300 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the United States, Canada, and Mexico. Its stores offer numerous 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 distributor Interline Brands in 2015 allowed Home Depot to enter the maintenance, repair, and operations business, which has been expanded through the tie-up with HD Supply (2020). The addition of the Company Store brought textile exposure to Home Depot's lineup.
Executives
Siddiqui Fahim officer: EVP and CIO 2455 PACES FERRY RD., SE ATLANTA GA 30339
Santilli Paula director PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Seidman Becker Caryn director 65 EAST 55TH STREET, 17TH FLOOR NEW YORK NY 10022
Deaton John A. officer: EVP - Supply Chain & Prod. Dev 2455 PACES FERRY RD., SE ATLANTA GA 30339
Arpey Gerard J director 4333 AMON CARTER BLVD FORT WORTH TX 76155
Gooden Linda R director LOCKHEED MARTIN CORPORATION 6801 ROCKLEDGE DRIVE BETHESDA MD 20817
Brenneman Gregory D director
Linnartz Stephanie director 10400 FERNWOOD ROAD BETHESDA MD 20817
Boyd Jeffery H director C/O ASPEN GROVE CAPITAL, LLC PO BOX 9389 AVON CO 81620
Bousbib Ari director UNITED TECHNOLOGIES CORP ONE FINANCIAL PLAZA HARTFORD CT 06101
Foulkes Helena director ONE CVS DRIVE WOONSOCKET RI 02895
Carey Albert P director PEPSICO, INC. 700 ANDERSON HILL ROAD PURCHASE NY 10577
Kadre Manuel director 2020 SALZEDO STREET, SUITE 301 CORAL GABLES FL 33134
Brown J Frank director PARK AVENUE PLAZA 55 EAST 52ND STREET NEW YORK NY 10055
Hewett Wayne M. director 5 WESTBROOK CORPORATE CENTER WESTCHESTER IL 60154

The Home Depot Headlines

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