What Is HD Fair Value?
Home Depot Inc. (HD) fair value estimate using multiple valuation models, updated daily.
As of October 31, 2026, Home Depot Inc. (HD) has a composite fair value estimate of $120.95 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $329.20, suggesting the stock is overvalued by 63.3%.
Data as of October 31, 2026 (today)
Composite Fair Value
Overvalued4 of 4 models$120.95
vs. current price of $329.20(-63.3%)
How Is HD Fair Value Calculated?
Four independent models estimate what HD is worth. Each uses different inputs and assumptions. The composite blends them by weight.
HD Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
35% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$112.84
-65.7%Overvalued
Inputs used
DDM (Dividend Discount Model)
15% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
$121.24
-63.2%Overvalued
Inputs used
HD Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
25% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$75.01
-77.2%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
25% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$150.20
-54.4%Overvalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $329.20 is 65.7% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $11.22B | $10.30B |
| Year 2 | $11.70B | $9.85B |
| Year 3 | $12.21B | $9.42B |
| Year 4 | $12.73B | $9.01B |
| Year 5 | $13.27B | $8.62B |
| Year 6 | $13.84B | $8.25B |
| Year 7 | $14.44B | $7.89B |
| Year 8 | $15.06B | $7.55B |
| Year 9 | $15.70B | $7.22B |
| Year 10 | $16.37B | $6.90B |
| Terminal Value | $257.43B | $108.55B |
What Are HD's Key Financial Metrics?
Earnings & Growth
Current Price
$329.20
EPS (TTM)
$14.29
Forward P/E
20.6
Profit Margin
8.4%
Cash & Balance Sheet
Free Cash Flow
10.8B
EBITDA
24.6B
Book Value
$16.65
Total Debt
63.2B
What Do Analysts Say About HD?
Low
$310.00
Average
$379.00
High
$425.00
Upside
+15.1%
HD Fair Value FAQ
What is the fair value of HD?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), HD's estimated fair value is $120.95. The stock is currently trading at $329.20, which makes it overvalued by our analysis.
How is HD's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is HD overvalued or undervalued?
Based on our analysis, HD is overvalued. The current price of $329.20 is 63.3% above our estimated fair value of $120.95.
What do Wall Street analysts say about HD?
32 analysts cover Home Depot Inc. with a consensus rating of "Buy." The average price target is $379.00, ranging from $310.00 to $425.00. This implies 15.1% upside from the current price.