How Much Is Home Depot Worth?

Learn about Home Depot's market performance before investing.

The Home Depot offers customers a convenient way to purchase home improvement tools from its more than 2,200 locations in North America. A household name among craftsmen, builders and DIY-ers, The Home Depot often beats its main competitor Lowe’s in terms of value; in 2017, Forbes listed both companies among the world’s most valuable brands, with The Home Depot placing at No. 33 and Lowe’s placing at No. 78. The numbers listed below can help explain why The Home Depot is so popular.

What Home Depot Is Worth
The Home Depot Share Price, 52-Week Range $144.25-$207.61
The Home Depot Market Cap, 52-Week Range $166.4B-$239.5B
2017 Revenue $100.9B
2017 Profit $8.6B
GOBankingRates’ Evaluation of
The Home Depot’s Net Worth
 $88.1B
All information on 52-week range accurate as of June 4, 2018.

 

About Home Depot
Headquarters Atlanta
Year Founded1978
CEO Craig Menear’s Salary $1,300,000 base pay

Home Depot’s Market Cap Range: $166.4B-$239.5B

Market capitalization is determined by the total dollar value of a company’s outstanding shares, which helps investors determine the relative size of a company. The Home Depot’s market cap range, with a 52-week high of $239.5 billion, reflects how the market as a whole values the company, and investor differences mean the value is in contention.

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Home Depot’s Net Worth: $88.1B

Market caps offer a clear view of what the market values a company at, but that value is also susceptible to change on an almost-hourly basis due to external market forces and investors fighting over the value of shares.

In an effort to bypass market volatility, the GOBankingRates Evaluation calculates a company’s net worth based on recent annual reports of income and profit, while also taking into consideration its assets and liabilities.

Based solely on The Home Depot’s revenue and profits from the last three years, The Home Depot is worth just over $88 billion.

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The Home Depot’s value has been rising since 2012 when the housing market saw improvement, and since 2014, which saw a push for new housing.

The company’s growth has been driven in large part by its willingness to dive into e-commerce. In February 2018, The Home Depot reported that the company had surpassed $100 billion in sales.

Home Depot’s History and Investors

Founders Bernie Marcus and Arthur Blank first conceptualized The Home Depot in 1978 based on their own experience as DIY enthusiasts. After securing the proper financing, they opened the first two stores in Atlanta in 1979, and the company quickly went public in 1981. The Home Depot often contributes to philanthropic causes through The Home Depot Foundation, in particular, focusing on projects for veterans that include pledging money to veteran-related causes.

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The Home Depot’s investment makeup is similar to its rival Lowe’s. Big banks like Wells Fargo & Co. and JPMorgan Chase & Co. have a stake in the company, and investment company The Vanguard Group Inc. is — like it is for Lowe’s — The Home Depot’s largest shareholder, with 80,973,105 shares as of December 2017.

Methodology: The GOBankingRates Evaluation assesses a company’s net worth based on the company’s total assets, total liabilities, and revenue and net income from the last three years. Base value is established by subtracting total liabilities from total assets from the company’s last full fiscal year. Income value is established by taking the average of the revenue from the last three full fiscal years, 10 times the average of the net profits from the last three full fiscal years, and then calculating the average of those two figures. The final GOBankingRates Evaluation number is the sum of the base value and the income value.

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