Home Depot Stock Plunges to Decade-Low Multiple

Home Depot's stock price has been sliding lately, down about 26% over the past year to around $300. While this might seem like a bad sign, some analysts argue that the company's current multiple is near its lowest point in ten years.

The S&P 500 returned about 17% during the same period, making Home Depot's performance look even more lackluster. However, one number suggests otherwise: the stock trades at 1.8 times trailing sales, within the range of 1.7 to 2.9 seen over the past decade.

Another point of contention is the impact of tariff refunds on Home Depot's reported profit. In the second quarter of fiscal 2026, these refunds cut the company's cost of goods sold by $685 million. However, management claims that part of this amount went straight back out to offset higher costs, leaving a net benefit of about 85 basis points.

Sales were up 5.7% year over year in the second quarter of fiscal 2026, thanks in part to the GMS acquisition. Online comparable sales rose 11% year over year, with portable power tools setting a quarterly sales record.