Home Depot Debt to Equity vs. Price to Book

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HD -- USA Stock  

Fiscal Quarter End: January 31, 2020  

The Drivers Module shows relationships between Home Depot's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of Home Depot over time as well as its relative position and ranking within its peers. Plese check Risk vs Return Analysis

Home Depot Price to Book vs. Debt to Equity Fundamental Analysis

Home Depot is rated below average in debt to equity category among related companies. It is rated below average in price to book category among related companies fabricating about  49.65  of Price to Book per Debt to Equity.
Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
Home Depot 
D/E 
 = 
Total Debt 
Total Equity 
=
3.31 
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging barrowing against the capital invested by the owners.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is accounting value of assets minus liabilities.
Home Depot 
P/B 
 = 
MV Per Share 
BV Per Share 
=
164.37 
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.

Home Depot Price to Book Comparison

Home Depot is rated below average in price to book category among related companies.

Home Depot Fundamental Comparison