Home Depot Inc., FCFE 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)
Capital expenditures	(3,226)	(3,119)	(2,566)	(2,463)	(2,678)	(2,442)
Proceeds from (repayments of) short-term debt, net	—)	(1,035)	1,035)	(974)	(365)	(220)
Proceeds from long-term debt, net of discounts	1,995)	6,942)	2,979)	7,933)	3,420)	3,466)
Repayments of long-term debt	(1,271)	(2,491)	(1,532)	(2,872)	(1,070)	(1,209)
Free cash flow to equity (FCFE)	18,670)	14,912)	16,487)	20,463)	13,030)	12,633)

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
FCFE	Free cash flow to equity is the cash flow available to Home Depot Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Home Depot Inc. FCFE decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Home Depot Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	993,293,377
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	18,670)
FCFE per share	18.80
Current share price (P)	410.44
Valuation Ratio
P/FCFE	21.84
Benchmarks
P/FCFE, Competitors¹
Amazon.com Inc.	100.02
Lowe’s Cos. Inc.	19.13
TJX Cos. Inc.	35.19
P/FCFE, Sector
Consumer Discretionary Distribution & Retail	51.42
P/FCFE, Industry
Consumer Discretionary	38.17

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

¹ Click competitor name to see calculations.

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

Home Depot Inc., historical P/FCFE calculation, comparison to benchmarks

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
No. shares of common stock outstanding¹	991,015,773	1,014,955,506	1,033,349,933	1,077,069,383	1,074,741,592	1,103,903,507
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	18,670)	14,912)	16,487)	20,463)	13,030)	12,633)
FCFE per share³	18.84	14.69	15.95	19.00	12.12	11.44
Share price^1, 4	378.99	287.97	317.05	292.75	181.76	190.06
Valuation Ratio
P/FCFE⁵	20.12	19.60	19.87	15.41	14.99	16.61
Benchmarks
P/FCFE, Competitors⁶
Amazon.com Inc.	—	84.16	240.95	—	55.66	63.35
Lowe’s Cos. Inc.	18.03	7.08	13.55	12.28	8.69	20.45
TJX Cos. Inc.	28.74	33.59	—	10.55	19.71	21.79
P/FCFE, Sector
Consumer Discretionary Distribution & Retail	—	41.58	51.89	59.10	38.09	38.19
P/FCFE, Industry
Consumer Discretionary	—	30.84	36.19	82.92	32.04	28.99

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).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 18,670,000,000 ÷ 991,015,773 = 18.84

⁴ Closing price as at the filing date of Home Depot Inc. Annual Report.

⁵ 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 378.99 ÷ 18.84 = 20.12

⁶ Click competitor name to see calculations.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Home Depot Inc. P/FCFE ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Home Depot Inc. (NYSE:HD)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical