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. Operating leases, debt equivalent this item represents the amount of additional capital leases on. The following table provides additional summary stats. 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. Home depot is more expensive relative to book value, forward earnings and free cash flow.
You need the market value of debt and a pretax cost of debt to compute a cost of capital. Offer is for new accounts, is subject to credit approval and valid 7292020. 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 return on assets roa values for home depot hd over the last 10 years. Jan 31, 2020 the home depot to host first quarter 2020 earnings conference call on may 19 pr newswire 0505 08. However, calculating the market value of debt can be tricky, because not many firms carry their debt in bond form. The hd including details of assets, liabilities and shareholders equity. The home depots book value per share for the quarter that ended in jan. Gift cards also make excellent wedding or wedding shower gifts and are. 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.
Book value per share is a widely used stock evaluation measure. Once you know the book value, divide the value of the debt by the assets. You can apply the same method to get the book value growth rate using book value per share data. Home depot s debt equity for fiscal years ending january 2016 to 2020 averaged 3.
Looking back at the last five years, home depots debt equity peaked in january 2018 at 1,858. Hd price to book ratio feb 02 2020 nov 03 2019 aug 04 2019 may 05 2019 feb 03 2019. Jun 25, 2019 home depot is more expensive relative to book value, forward earnings and free cash flow. Total debt of home improvement retail industry is currently estimated at about 278. Total debt carrying amount sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. Historical price to book 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. The market value of debt is typically difficult to calculate, therefore, gurufocus uses book value of debt d to do the calculation. The hd, including valuation measures, fiscal year financial statistics, trading records, share statistics and more. 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.
The debt equity ratio can be defined as a measure of a companys financial leverage calculated by dividing its longterm debt by stockholders equity. Current and historical debt to equity ratio values for home depot hd over the last 10 years. Give the gift of doing with a home depot gift card. Home depot debt to equity ratio 20062020 hd macrotrends. The hd, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. In depth view into home depot price to book value including historical data from 1981, charts, stats and industry comps. The current price to book ratio for home depot as of may 08, 2020 is 0. Find out all the key statistics for home depot, inc. From the latest 10q filing the numbers are 2,043,000,000 shares outstanding. During the past years, the highest 3year average book value per share growth rate of the home depot was 63. How would you find the book value of equity and the book. Broadly speaking, a companys assets are financed by either debt or equity. The home depot s book value per share for the quarter that ended in jan. Home depot is rated below average in total debt category among related companies.
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. Current and historical book value per share for home depot hd from 2006 to 2020. The home depots total assets 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. Financial management assignment the home depot 00019834. If the result is higher than one, thats a sign the company is carrying a large amount of debt. Market value of debt learn how to calculate market value of. Home depot book value per share 20062020 hd macrotrends.
Home depot inc hd fundamental analysis, stock research. A companys debt doesnt always come in the form of publicly traded bonds, which have a specified market value. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. Get the annual and quarterly balance sheet of home depot, inc. Book value per share can be defined as the amount of equity available to. Dec 15, 2018 once you know the book value, divide the value of the debt by the assets. Home depots common stock closed fiscal 2012 at a price of. 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.
The home depot to host first quarter 2020 earnings conference call on may 19 pr newswire 0505 08. Evaluating home depot and lowes ahead of building season. The discrepancy in peg ratios is especially stark if consensus estimates are used in the calculation. Use the stock price and number of shares outstanding to calculate the market value of equity. Home depot debt equity for the three months ending january 31, 2020 was 0. 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. How to find book value of a debt on a balance sheet. 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. 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. Home depot roa for the three months ending january 31, 2020 was 21.
Home depot price to book ratio 20062020 hd macrotrends. How to find book value of a debt on a balance sheet bizfluent. Gift cards also make excellent wedding or wedding shower gifts and are the perfect solution for fathers day gifts and holiday gifts. Its products include building materials, home improvement products. Price book value is a widely used stock evaluation measure. Home depot s operated at median debt equity of 335. In depth view into hd book value per share explanation, calculation, historical.