Home Depot‘s CAPE ratio

The CAPE ratio for Home Depot compares its current stock price to the average inflation-adjusted earnings over the past 10 years. As a leading home improvement retailer, Home Depot typically has a moderate CAPE ratio, reflecting its stable earnings and strong market presence. A high CAPE ratio may suggest the stock is overvalued, indicating lower future returns, while a low CAPE ratio could signal undervaluation and growth potential. Investors use Home Depot’s CAPE ratio to evaluate its long-term valuation, considering its consistent profitability, market leadership, and resilience to economic cycles affecting consumer spending.