The Home Depot (XSWX:HD) 1-Year Sharpe Ratio: 0.91 (As of Jul. 12, 2026)


XSWX:HD The Home Depot Inc XSWX:HD
83 GF Score
Price CHF276.05
GF Value CHF307.04
! 3 Warning Signs
View Full Analysis

What is The Home Depot 1-Year Sharpe Ratio?

The Home Depot XSWX:HD +1.14% 83 1-Year Sharpe Ratio is 0.91 as of Jul. 12, 2026. GuruFocus rates XSWX:HD with a GF Score™ of 83/100 and a GF Value™ of CHF307.04. The stock has 3 warning signs investors should review.

The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-07-12), The Home Depot's 1-Year Sharpe Ratio is 0.91.

The Home Depot  (XSWX:HD) 1-Year Sharpe Ratio Explanation

The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.

The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.

The Home Depot 1-Year Sharpe Ratio Related Terms

XSWX:HD vs LOW, FND, HVT: 1-Year Sharpe Ratio Comparison

For the Home Improvement Retail subindustry, The Home Depot's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-Year Sharpe 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 1-Year Sharpe Ratio vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's 1-Year Sharpe Ratio distribution charts can be found below:

* The bar in red indicates where The Home Depot's 1-Year Sharpe Ratio falls into.


XSWX:HD
83GF Score
The Home Depot Inc XSWX:HD
1-Year Sharpe Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

The Home Depot 1-Year Sharpe Ratio Calculation

The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.

Frequently Asked Questions Learn more about 1-Year Sharpe Ratio →
What does a 1-Year Sharpe Ratio of 0.91 mean?
The Home Depot (XSWX:HD) has a 1-Year Sharpe Ratio of 0.91 as of Jul. 12, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for The Home Depot and its competitors.
Is The Home Depot's 1-Year Sharpe Ratio too high?
The Home Depot's current 1-Year Sharpe Ratio is 0.91. 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 1-Year Sharpe Ratio compare to LOW and FND?
The Home Depot's 1-Year Sharpe Ratio of 0.91 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 1-Year Sharpe Ratio for a Retail - Cyclical company?
A good 1-Year Sharpe Ratio depends on the Retail - Cyclical industry context. However, 1-Year Sharpe Ratio 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 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for The Home Depot and its competitors. The Home Depot's current 1-Year Sharpe Ratio is 0.91. 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 1-Year Sharpe Ratio of 0.91. The stock's GF Value™ is CHF307.04, compared to a current price of CHF276.05 — trading 10.1% below its estimated fair value. The current 1-Year Sharpe Ratio is 0.91. 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 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For The Home Depot (XSWX:HD), the current 1-Year Sharpe Ratio is 0.91 as of Jul. 12, 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 CHF276.05 is trading 10.1% below its estimated GF Value™ of CHF307.04.

Key valuation signals for XSWX:HD:

  • 1-Year Sharpe Ratio: 0.91
  • GF Value™: CHF307.04 vs. price of CHF276.05 (10.1% 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

Get the complete analysis for XSWX:HD

1-Year Sharpe Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF276.05
Price
CHF307.04
GF Value