The Home Depot (LIM:HD) Shiller PE Ratio: (As of Sep. 21, 2026)

Author: Vera Yuan Vera Yuan
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Director of Data and Quant Analytics at GuruFocus
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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

LIM:HD The Home Depot Inc LIM:HD
68 GF Score
Price $305.60
GF Value $374.08
Valuation Modestly Undervalued
! 4 Warning Signs
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What is The Home Depot Shiller PE Ratio?

Shiller PE for Stocks: The True Measure of Stock Valuation


The Home Depot  (LIM:HD) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


The Home Depot Shiller PE Ratio Related Terms


The Home Depot Shiller PE Ratio Historical Data

* Premium members only.

The historical data trend for The Home Depot's Shiller PE 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.

The Home Depot Shiller PE Ratio Chart

The Home Depot Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - 27.08 28.00 28.12

The Home Depot Quarterly Data
Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26 Jul26
Shiller PE Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 26.51 28.26 27.86 26.81 26.37

LIM:HD vs LOW, FND, HVT: Shiller PE Ratio Comparison

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

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

* The bar in red indicates where The Home Depot's Shiller PE Ratio falls into.


LIM:HD
68GF Score
The Home Depot Inc LIM:HD
Shiller PE Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

The Home Depot Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

The Home Depot's E10 for the quarter that ended in Jul. 2026 is calculated as:

For example, The Home Depot's adjusted earnings per share data for the three months ended in Jul. 2026 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Jul. 2026 (Change)*Current CPI (Jul. 2026)
=4.7851/333.9180*333.9180
=4.785

Current CPI (Jul. 2026) = 333.9180.

The Home Depot Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201610 1.600 241.729 2.210
201701 1.440 242.839 1.980
201704 1.670 244.524 2.281
201707 2.250 244.786 3.069
201710 1.840 246.663 2.491
201801 1.520 247.867 2.048
201804 2.080 250.546 2.772
201807 3.050 252.006 4.041
201810 2.510 252.885 3.314
201901 2.090 251.712 2.773
201904 2.272 255.548 2.969
201907 3.166 256.571 4.120
201910 2.531 257.346 3.284
202001 2.280 257.971 2.952
202004 2.085 256.389 2.715
202007 4.022 259.101 5.184
202010 3.184 260.388 4.083
202101 2.650 261.582 3.383
202104 3.856 267.054 4.821
202107 4.526 273.003 5.536
202110 3.921 276.589 4.734
202201 3.214 281.148 3.817
202204 4.092 289.109 4.726
202207 5.047 296.276 5.688
202210 4.242 298.012 4.753
202301 3.303 299.170 3.686
202304 3.823 303.363 4.208
202307 4.645 305.691 5.074
202310 3.814 307.671 4.139
202401 2.818 308.417 3.051
202404 3.629 313.548 3.865
202407 4.598 314.540 4.881
202410 3.674 315.664 3.886
202501 3.015 317.671 3.169
202504 3.454 320.795 3.595
202507 4.579 323.048 4.733
202510 3.619 0.000
202601 2.584 325.252 2.653
202604 3.302 333.020 3.311
202607 4.785 333.918 4.785

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

Is The Home Depot (LIM:HD) Overvalued in 2026?

Based on GuruFocus' analysis, The Home Depot stock appears to be undervalued. The current stock price of $305.60 is trading 18.3% below its estimated GF Value™ of $374.08. GuruFocus considers The Home Depot to be Modestly Undervalued.

Key valuation signals for LIM:HD:

  • Shiller PE Ratio:
  • GF Value™: $374.08 vs. price of $305.60 (18.3% below fair value)
  • GF Score™: 68/100 with 4 warning signs

No single metric tells the full story. See the LIM: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.
68GF Score

Get the complete analysis for LIM:HD

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

$305.60
Price
$374.08
GF Value