DCF Tool


Home Depot, Inc. – Home Centers
The Home Depot, Inc., often simply referred to as Home Depot, is an American multinational home improvement retail corporation that sells tools, construction products, appliances, and services, including fuel and transportation rentals. Home Depot is the largest home improvement retailer in the United States.
Analysis Results
Intrinsic Value $1,513.56
Latest Price $324.08
Relative Value 79% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 19.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 19.4%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2024 27.9 26.7
2025 33.3 30.6
2026 39.7 35.1
2027 47.4 40.2
2028 56.6 46.1
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 1700 billion. This corresponds to a present value of 1330 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 179 billion. Adding in the terminal value gives a total present value of 1510 billion.

There are presently 995.0 million outstanding shares, so the intrinsic value per share is 1513.56.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 32,471,000,000
Current Cash 2,757,000,000
Current Liabilities 23,110,000,000
Current Debt 1,231,000,000
Non-Cash Working Capital (NCWC) 7,835,000,000
Change in NCWC 6,334,000,000
EBIT 24,039,000,000
Tax Provision 5,372,000,000
Depreciation and Amortization 2,975,000,000
Capital Expenditure -3,119,000,000
Unlevered Free Cash Flow 24,483,682,208
Current Assets 29,055,000,000
Current Cash 2,343,000,000
Current Liabilities 28,693,000,000
Current Debt 3,482,000,000
Non-Cash Working Capital (NCWC) 1,501,000,000
Change in NCWC 2,669,000,000
EBIT 23,040,000,000
Tax Provision 5,304,000,000
Depreciation and Amortization 2,862,000,000
Capital Expenditure -2,566,000,000
Unlevered Free Cash Flow 20,383,057,689
Current Assets 28,477,000,000
Current Cash 7,895,000,000
Current Liabilities 23,166,000,000
Current Debt 1,416,000,000
Non-Cash Working Capital (NCWC) -1,168,000,000
Change in NCWC -3,283,000,000
EBIT 18,278,000,000
Tax Provision 4,112,000,000
Depreciation and Amortization 2,519,000,000
Capital Expenditure -2,463,000,000
Unlevered Free Cash Flow 10,624,145,482
Current Assets 19,810,000,000
Current Cash 2,133,000,000
Current Liabilities 18,375,000,000
Current Debt 2,813,000,000
Non-Cash Working Capital (NCWC) 2,115,000,000
Change in NCWC -315,000,000
EBIT 15,843,000,000
Tax Provision 3,473,000,000
Depreciation and Amortization 2,296,000,000
Capital Expenditure -2,678,000,000
Unlevered Free Cash Flow 11,406,772,069
Current Assets 18,529,000,000
Current Cash 1,778,000,000
Current Liabilities 16,716,000,000
Current Debt 2,395,000,000
Non-Cash Working Capital (NCWC) 2,430,000,000
Change in NCWC 525,000,000
EBIT 15,777,000,000
Tax Provision 3,435,000,000
Depreciation and Amortization 2,152,000,000
Capital Expenditure -2,442,000,000
Unlevered Free Cash Flow 12,288,862,118
Current Assets 18,933,000,000
Current Cash 3,595,000,000
Current Liabilities 16,194,000,000
Current Debt 2,761,000,000
Non-Cash Working Capital (NCWC) 1,905,000,000
Change in NCWC -400,000,000
EBIT 14,681,000,000
Tax Provision 5,068,000,000
Depreciation and Amortization 2,062,000,000
Capital Expenditure -1,897,000,000
Unlevered Free Cash Flow 9,014,308,658
Current Assets 17,724,000,000
Current Cash 2,538,000,000
Current Liabilities 14,133,000,000
Current Debt 1,252,000,000
Non-Cash Working Capital (NCWC) 2,305,000,000
Change in NCWC -373,000,000
EBIT 13,427,000,000
Tax Provision 4,534,000,000
Depreciation and Amortization 1,973,000,000
Capital Expenditure -1,621,000,000
Unlevered Free Cash Flow 8,532,249,459
Current Assets 16,993,000,000
Current Cash 2,216,000,000
Current Liabilities 12,526,000,000
Current Debt 427,000,000
Non-Cash Working Capital (NCWC) 2,678,000,000
Change in NCWC 40,000,000
EBIT 11,774,000,000
Tax Provision 4,012,000,000
Depreciation and Amortization 1,863,000,000
Capital Expenditure -1,503,000,000
Unlevered Free Cash Flow 7,887,883,676
Current Assets 15,302,000,000
Current Cash 1,723,000,000
Current Liabilities 11,269,000,000
Current Debt 328,000,000
Non-Cash Working Capital (NCWC) 2,638,000,000
Change in NCWC 4,000,000
EBIT 10,469,000,000
Tax Provision 3,631,000,000
Depreciation and Amortization 1,786,000,000
Capital Expenditure -1,442,000,000
Unlevered Free Cash Flow 7,006,561,046
Current Assets 15,279,000,000
Current Cash 1,929,000,000
Current Liabilities 10,749,000,000
Current Debt 33,000,000
Non-Cash Working Capital (NCWC) 2,634,000,000
Change in NCWC -103,000,000
EBIT 9,166,000,000
Tax Provision 3,082,000,000
Depreciation and Amortization 1,757,000,000
Capital Expenditure -1,389,000,000
Unlevered Free Cash Flow 6,094,563,009
Current Assets 15,372,000,000
Current Cash 2,494,000,000
Current Liabilities 11,462,000,000
Current Debt 1,321,000,000
Non-Cash Working Capital (NCWC) 2,737,000,000
Change in NCWC -450,000,000
EBIT 7,766,000,000
Tax Provision 2,686,000,000
Depreciation and Amortization 1,684,000,000
Capital Expenditure -1,312,000,000
Unlevered Free Cash Flow 4,799,276,000

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