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How Much Is Home Depot Worth?

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The Home Depot offers customers a convenient way to purchase home improvement tools and supplies from its 2,300 locations in North America. A household name among craftspeople, builders and do-it-yourself-ers, The Home Depot often beats its main competitor, Lowe’s, in terms of value; 2021, Visual Capitalist listed both companies among the world’s most valuable brands, with The Home Depot brand valued at $70.5 billion and Lowe’s valued at $20.7 billion. 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 $246.59-$408.83
2020 Revenue  $132.11B
2020 Profit  $12.867B
GOBankingRates’ Evaluation of
The Home Depot’s Net Worth
 $120.437B
All information on 52-week range accurate as of Nov. 18, 2021.
About Home Depot
Headquarters  Atlanta
Year Founded 1978
CEO Craig Menear’s Salary  $1,300,000 base pay

Home Depot’s Market Cap: $428.634B

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. Over the past year, The Home Depot’s market cap fluctuated with the number of shares outstanding and the share price. At the current $406.15 share price, The Home Depot’s market cap is $428.634 billion.

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Home Depot’s Net Worth: $120.437B

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 and its assets and debts, The Home Depot is worth over $120 billion.

The Home Depot’s value has been rising since 2011, as the housing market recovered from the crash. After a brief dip in March 2020, when the economy shut down due to the pandemic, the share price began a 167% climb to its current $406.15 price, thanks to strong housing market.

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In its third-quarter 2021 earnings release on Tuesday, Nov. 16, The Home Depot announced strong earnings and revenue that beat analyst estimates, CNBC reported. Sales were up 9.8% compared to the same period last year, and earnings per share were up 23.3% compared to the same period last year, according to a statement The Home Depot released ahead of its earnings call.

During that call, Home Depot executives told analysts that homebuilding and home-improvement professionals are still working through project backlogs as consumers begin allowing the professionals back into their homes, according to CNBC. The Home Depot has a larger share of the professional market than chief competitor Lowe’s, helping it ride out reduced demand from DYI customers that triggered a 5.5% decrease in customer transactions. However, those customers who did shop spent 12.9% more, on average.

Although The Home Depot has been constrained somewhat by the same supply-chain issues plaguing retailers across the board — it currently has 95 ships waiting outside ports in Los Angeles and Long Beach, California — most of its inventory is in place for the fourth quarter, which includes the holiday shopping season.

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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 went public in 1981. The Home Depot often contributes to philanthropic causes through The Home Depot Foundation, in particular, projects for veterans that include pledging money to veteran-related causes.

The Home Depot’s investment makeup is similar to its rival Lowe’s. Big banks like Bank of America 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 93,262,644 shares as of November 2021.

Daria Uhlig contributed to the reporting for this article.

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.

Information is accurate as of Nov. 19, 2021.