The Home Depot, Inc. operates as a home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products The company also offers installation services for flooring, cabinets and cabinet makeovers, countertops, furnaces and central air systems, and windows. In addition, it provides tool and equipment rental services. The company primarily serves homeowners; and professional renovators/remodelers, general contractors, maintenance professionals, handymen, property managers, building service contractors, and specialty tradesmen, such as electricians, plumbers, and painters. It also sells its products through websites, including homedepot.com; blinds.com, an online site for custom window coverings; and thecompanystore.com, an online site for textiles and décor products. As of December 31, 2021, the company operated 2,317 stores in the United States. The Home Depot, Inc. was incorporated in 1978 and is based in Atlanta, Georgia.

BUILD UP FREE CASH	2023-01-29 (A)	2024-01-28 (A)	2025-02-02 (A)	2026-01-31 (E)	2027-01-31 (E)	2028-01-31 (E)	2029-01-31 (E)	2030-01-31 (E)
Revenue	157,403	152,669	159,514	164,275	171,545.2	178,969.1	178,969.1	178,969.1
Revenue % Chg.	4.1%	-3%	4.5%
EBIT	24,039	21,689	21,526	21,338.9	22,172.7	23,617.7	23,617.7	23,617.7
EBIT Margin	15.3%	14.2%	13.5%
Tax Rate	23.9%	24%	23.7%
NOPAT	18,293.7	16,484.5	16,423.5	16,118.3	16,727.1	17,836.6	17,836.6	17,836.6
NOPAT Margin	11.6%	10.8%	10.3%	9.8%	9.8%	10%	10%	10%
D&A	2,975	3,247	3,761	3,031.1	3,127.3	3,290.6	3,290.6	3,290.6
D&A / Revenue	1.9%	2.1%	2.4%
Capex	-3,119	-3,226	-3,485	-3,973.9	-4,028.4	-4,165.7	-4,165.7	-4,165.7
Capex / Revenue	-2%	-2.1%	-2.2%
Chg. NWC	-6,102	2,088	694	-1,135.7	-1,185.9	-1,237.2	-1,237.2	-1,237.2
Chg. NWC / Revenue	-3.9%	1.4%	0.4%
Unlevered FCF (UFCF)	12,047.7	18,593.5	17,393.5	14,039.7	14,640.1	15,724.2	15,724.2	15,724.2
UFCF % Chg.	-16.3%	54.3%	-6.5%	-19.3%	4.3%	7.4%	—	—
PV of UFCF	—	—	—	13,015.5	12,581.9	12,527.8	11,613.9	10,766.6
Sum of PV of UFCF	—	—	—	13,015.5	25,597.4	38,125.2	49,739.1	60,505.7

Cost of Debt
Tax Rate
After Tax Cost of Debt	3%
Risk Free Rate
Market Risk Premium
Beta	1
Cost of Equity	8.7%
Total Debt	63,085
Market Cap	358,035.7
Total Capital	421,120.7
Debt Weighting	15%
Equity Weighting	85%
WACC	7.9%

Exit Multiple EV/FCF
Terminal Value	422,333.7
PV of Terminal Value	268,081.3
Cumulative PV of UFCF	60,505.7
Net Debt	64,298
Equity Value	264,289
Shares Outstanding	995.5
Implied Share Price	265.5
Current Share Price	359.7
Implied Upside / (Downside)	-26.2%