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Home Depot Debt to Equity vs. Price to Earnings To Growth

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HD -- USA Stock  

Earnings Report: May 19, 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. Please check Risk vs Return Analysis

Home Depot Price to Earnings To Growth 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 earnings to growth category among related companies producing about  0.87  of Price to Earnings To Growth per Debt to Equity. The ratio of Debt to Equity to Price to Earnings To Growth for Home Depot is roughly  1.15 
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 a 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 borrowing against the capital invested by the owners.
PEG Ratio indicates the potential value of an equity instrument and is calculated by dividing Price to Earnings (P/E) ratio into earnings growth rate.Most analysts and investors prefer this measure to a Price to Earnings (P/E) ratio because it incorporates the future growth of a firm. The low PEG ratio usually implies that an equity instrument is undervalued; where as PEG of 1 may indicate that an equity is reasonably priced under given expectations of future growth.
Home Depot 
PEG Ratio 
 = 
PE Ratio 
EPS Growth 
=
2.89 
Generally speaking, PEG ratio is a 'quick and dirty' way to measure how the current price of a firm's stock relates to its earnings and growth rate. The main benefit of using PEG ratio is that investors can compare the relative valuations of companies within different industries without analyzing their P/E ratios.

Home Depot Price to Earnings To Growth Comparison

  Price to Earnings To Growth 
    
  Home Depot Comparables 
Home Depot is rated below average in price to earnings to growth category among related companies.

Home Depot Fundamental Comparison