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Stocks HD DCF valuation

DCF valuation

What is Home Depot, Inc. worth?

With the base-case assumptions below, a discounted cash flow model on Home Depot, Inc.'s reported free cash flow gives $178.79 per share. The share price was $293.20 on September 25, 2026, 64% above that value.

Inputs from the filings

Free cash flow, fiscal 2025
$12.65B
Average free cash flow, last 5 years
$14.48B
Cash
$2.09B
balance sheet of August 2, 2026
Debt
$48.65B
balance sheet of August 2, 2026
Diluted shares, fiscal 2025
995,000,000
Revenue growth per year, last 5 years
4.5%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear-0.5%0.5%2.0%10.0%$92.77-68%
Base4.5%3.5%2.5%9.0%$178.79-39%
Bull9.5%6.5%3.0%8.0%$346.31+18%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$240.06$258.67$281.41$309.83$346.37
8.0%$194.41$206.48$220.74$237.85$258.76
9.0%$161.02$169.27$178.79$189.89$203.01
10.0%$135.55$141.41$148.06$155.66$164.42
11.0%$115.49$119.79$124.60$130.00$136.13

Where the presets come from

Base: years 1 to 5 grow at Home Depot, Inc.'s revenue growth rate over the last 5 fiscal years (4.5% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Home Depot, Inc. company page