What Is HD Fair Value?
Home Depot Inc. (HD) fair value estimate using multiple valuation models, updated daily.
As of August 1, 2026, Home Depot Inc. (HD) has a composite fair value estimate of $123.79 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $331.96, suggesting the stock is overvalued by 62.7%.
Data as of August 1, 2026 (today)
Composite Fair Value
Overvalued4 of 4 models$123.79
vs. current price of $331.96(-62.7%)
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 →
$121.18
-63.5%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 →
$129.29
-61.1%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 →
$68.43
-79.4%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.
$149.55
-54.9%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 $331.96 is 63.5% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $11.12B | $10.22B |
| Year 2 | $11.64B | $9.83B |
| Year 3 | $12.19B | $9.46B |
| Year 4 | $12.76B | $9.11B |
| Year 5 | $13.36B | $8.76B |
| Year 6 | $13.99B | $8.44B |
| Year 7 | $14.65B | $8.12B |
| Year 8 | $15.34B | $7.81B |
| Year 9 | $16.06B | $7.52B |
| Year 10 | $16.81B | $7.24B |
| Terminal Value | $273.69B | $117.78B |
What Are HD's Key Financial Metrics?
Earnings & Growth
Current Price
$331.96
EPS (TTM)
$14.08
Forward P/E
20.6
Profit Margin
8.4%
Cash & Balance Sheet
Free Cash Flow
10.1B
EBITDA
24.9B
Book Value
$13.92
Total Debt
63.7B
What Do Analysts Say About HD?
Low
$310.00
Average
$370.34
High
$430.00
Upside
+11.6%
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 $123.79. The stock is currently trading at $331.96, 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 $331.96 is 62.7% above our estimated fair value of $123.79.
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 $370.34, ranging from $310.00 to $430.00. This implies 11.6% upside from the current price.