Book value per share is a widely used stock evaluation measure. At the end of 2012, the book value of home depots equity was. The book value of debt is commonly used in liquidity ratios, where it is compared to either assets or cash flows to see if an organization is capable of supporting its debt load. Home depot inc hd fundamental analysis, stock research. Historical price to book ratio values for home depot hd over the last 10 years. Book value per share can be defined as the amount of equity available to. Hd price to book ratio feb 02 2020 nov 03 2019 aug 04 2019 may 05 2019 feb 03 2019. However, calculating the market value of debt can be tricky, because not many firms carry their debt in bond form. To get the market value of debt, you first have to determine what items on the balance sheet qualify as debt and convert the book value of the debt into market value.
Looking back at the last five years, home depots debt equity peaked in january 2018 at 1,858. The market value of debt refers to the market price investors would be willing to buy a companys debt for, which differs from the book value on the balance sheet. You can apply the same method to get the book value growth rate using book value per share data. If the result is higher than one, thats a sign the company is carrying a large amount of debt.
Home depot book value per share 20062020 hd macrotrends. Gift cards also make excellent wedding or wedding shower gifts and are. The debt equity ratio can be defined as a measure of a companys financial leverage calculated by dividing its longterm debt by stockholders equity. Financial management assignment the home depot 00019834. Total debt carrying amount sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. Broadly speaking, a companys assets are financed by either debt or equity.
Find the latest price book value for the home depot inc hd. During the past years, the highest 3year average book value per share growth rate of the home depot was 63. Current and historical return on assets roa values for home depot hd over the last 10 years. The home depots total assets for the quarter that ended in jan. The hd, including valuation measures, fiscal year financial statistics, trading records, share statistics and more. The discrepancy in peg ratios is especially stark if consensus estimates are used in the calculation.
The market value of debt is typically difficult to calculate, therefore, gurufocus uses book value of debt d to do the calculation. Price to book ratio definition price to book value is a valuation ratio that is measured by stock price book value per share. The home depot capital estimation with operating income recategorized. Approximate the market value of debt by the book value of net debt. Jun 25, 2019 home depot is more expensive relative to book value, forward earnings and free cash flow. Home depot debt equity for the three months ending january 31, 2020 was 0. Once you know the book value, divide the value of the debt by the assets.
The hd including details of assets, liabilities and shareholders equity. Total debt of home improvement retail industry is currently estimated at about 278. The home depots book value per share for the quarter that ended in jan. Dec 15, 2018 once you know the book value, divide the value of the debt by the assets. Home depot inc has medium longterm debt at 38% of capital red circle. Find the latest book value per share for the home depot inc hd. The current price to book ratio for home depot as of may 08, 2020 is 0. Operating leases, debt equivalent this item represents the amount of additional capital leases on.
In depth view into hd book value per share explanation, calculation, historical. Home depot s debt equity for fiscal years ending january 2016 to 2020 averaged 3. Jan 31, 2020 the home depot to host first quarter 2020 earnings conference call on may 19 pr newswire 0505 08. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. Give the gift of doing with a home depot gift card. Home depot s operated at median debt equity of 335. The book value of equity should be unaffected by either adjustment, but the book value of capital will then be the sum of the debt, including converted operating leases, and the book value of equity. Offer is for new accounts, is subject to credit approval and valid 7292020. The home depot s book value per share for the quarter that ended in jan. The weighted average cost of capital or wacc is a discount rate used to find the present value a companys future cash flows that is applied in various discounted cash flow analyses. In depth view into home depot price to book value including historical data from 1981, charts, stats and industry comps. How to find book value of a debt on a balance sheet bizfluent.
Find out all the key statistics for home depot, inc. Home depot debt to equity ratio 20062020 hd macrotrends. Home depot is more expensive relative to book value, forward earnings and free cash flow. The simplest way to estimate the market value of debt is to convert the book value of debt in market value of debt by assuming the total debt as a single coupon bond with a coupon equal to the value of interest expenses on the total debt and the maturity equal to the weighted average maturity of the debt. The hd, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. Evaluating home depot and lowes ahead of building season hd. Current and historical debt to equity ratio values for home depot hd over the last 10 years. In accordance with recently published financial statements the book value per share of home depot is about 1. Home depot roa for the three months ending january 31, 2020 was 21. Use the stock price and number of shares outstanding to calculate the market value of equity. Home depot has built a solid foundation for fun,her expansion in the com ponys second decade net sales net sales approached from total with the opening ot 21 stoma total assets nearly third in book value per share book value per share was up in the latest year net earnings per share earnings share 0t reached an all. How to find book value of a debt on a balance sheet. Home depots common stock closed fiscal 2012 at a price of.
The following table provides additional summary stats. Congratulate a friend on a new home purchase, say thank you for being an amazing employee or happy birthday to the diyer in your life. The home depot to host first quarter 2020 earnings conference call on may 19 pr newswire 0505 08. Price book value is a widely used stock evaluation measure.
You need the market value of debt and a pretax cost of debt to compute a cost of capital. Get the annual and quarterly balance sheet of home depot, inc. From the latest 10q filing the numbers are 2,043,000,000 shares outstanding. Return on assets can be defined as an indicator of how profitable a company is relative to its total assets. Looking back at the last five years, home depot s debt equity peaked in january 2018 at 1,858. The market value of equity e is also called market cap. Current and historical book value per share for home depot hd from 2006 to 2020. Market value of debt learn how to calculate market value of. Home depot is rated below average in total debt category among related companies. Its products include building materials, home improvement products. Gift cards also make excellent wedding or wedding shower gifts and are the perfect solution for fathers day gifts and holiday gifts. Evaluating home depot and lowes ahead of building season.
Home depot price to book ratio 20062020 hd macrotrends. Indepth view of key statistics and finances for the home depot, inc. Approximate the market value of debt by the book value of netdebt. We need to calculate the weight of equity and the weight of debt. A companys debt doesnt always come in the form of publicly traded bonds, which have a specified market value. Home depots debt equity hit its fiveyear low in february 2019 of 1,555. How would you find the book value of equity and the book.
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