Home Depot Inc., FCFF calculation

US$ in millions

12 months ended:	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
Net earnings	15,143)	17,105)	16,433)	12,866)	11,242)	11,121)
Net noncash charges	3,627)	3,341)	3,261)	2,829)	2,547)	2,681)
Changes in assets and liabilities, net of acquisition effects	2,402)	(5,831)	(3,123)	3,144)	(66)	(764)
Net cash provided by operating activities	21,172)	14,615)	16,571)	18,839)	13,723)	13,038)
Cash paid for interest, net of interest capitalized, net of tax¹	1,375)	1,103)	959)	941)	850)	791)
Capital expenditures	(3,226)	(3,119)	(2,566)	(2,463)	(2,678)	(2,442)
Non-cash capital expenditures	(364)	(351)	(421)	(274)	(136)	(248)
Free cash flow to the firm (FCFF)	18,957)	12,248)	14,543)	17,043)	11,759)	11,139)

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Home Depot Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Home Depot Inc. FCFF decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Home Depot Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
Effective Income Tax Rate (EITR)
EITR¹	24.00%	23.90%	24.40%	24.20%	23.60%	23.60%
Interest Paid, Net of Tax
Cash paid for interest, net of interest capitalized, before tax	1,809)	1,449)	1,269)	1,241)	1,112)	1,035)
Less: Cash paid for interest, net of interest capitalized, tax²	434)	346)	310)	300)	262)	244)
Cash paid for interest, net of interest capitalized, net of tax	1,375)	1,103)	959)	941)	850)	791)

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

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² 2024 Calculation
Cash paid for interest, net of interest capitalized, tax = Cash paid for interest, net of interest capitalized × EITR
= 1,809 × 24.00% = 434

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Home Depot Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	444,451)
Free cash flow to the firm (FCFF)	18,957)
Valuation Ratio
EV/FCFF	23.45
Benchmarks
EV/FCFF, Competitors¹
Amazon.com Inc.	55.40
Lowe’s Cos. Inc.	24.93
TJX Cos. Inc.	30.04
EV/FCFF, Sector
Consumer Discretionary Distribution & Retail	47.47
EV/FCFF, Industry
Consumer Discretionary	40.30

Based on: 10-K (reporting date: 2024-01-28).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Home Depot Inc., historical EV/FCFF calculation, comparison to benchmarks

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	415,936)	332,713)	365,367)	344,655)	224,695)	237,232)
Free cash flow to the firm (FCFF)²	18,957)	12,248)	14,543)	17,043)	11,759)	11,139)
Valuation Ratio
EV/FCFF³	21.94	27.17	25.12	20.22	19.11	21.30
Benchmarks
EV/FCFF, Competitors⁴
Amazon.com Inc.	—	45.92	—	—	78.83	74.39
Lowe’s Cos. Inc.	24.69	19.56	19.56	14.88	20.95	18.88
TJX Cos. Inc.	24.44	31.93	33.03	18.30	19.08	21.16
EV/FCFF, Sector
Consumer Discretionary Distribution & Retail	—	38.32	111.04	130.00	51.35	42.44
EV/FCFF, Industry
Consumer Discretionary	—	32.71	50.20	59.78	45.72	30.57

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

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² See details »

³ 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 415,936 ÷ 18,957 = 21.94

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Home Depot Inc. EV/FCFF ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Home Depot Inc. (NYSE:HD)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical