Home Depot, the home improvement chain, is undervalued.
According to Wolfteam Ltd.'s corporate opinion Home Depot's intrinsic worth is 420 billion USD compared with Home Depot's current market capitalization of approximately 333 billion USD.
In the last 5 years Home Depot grew its revenue by almost 50 %. Home Depot exhibits healthy net profit margin of 10 % and in the three quarters before last, Home Depot has been growing its top line or its revenue.
With a dividend yield of 2.52 %, net profit margin of 10 % + and Price/Sales ratio of 2.2 currently Home Depot is undervalued.
The Price/Earnings ratio at 20.16 of Home Depot is not low, but future growth prospects of home furnishings and improvements in the USA will ensure Home Depot grows above even that number is Wolfteam Ltd.'s corporate opinion.
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