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Home Depot, Inc. (HD) — WACC Analysis

WACC Breakdown

Home Depot, Inc. (HD) has a weighted average cost of capital (WACC) of 8.0%. The cost of equity is 8.5%, derived from a beta of 0.83 and a risk-free rate of 4.7%. The after-tax cost of debt is 4.2%. The capital structure is 88.2% equity and 11.8% debt.

Interpretation

A WACC of 8.0% suggests that the market views Home Depot, Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare HD's WACC of 8.0% against industry peers to gauge its relative financing costs. A beta of 0.83 reflects the stock's volatility relative to the broader market.

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VALUATION

HD WACC: 7.99% for Home Depot, Inc.

Current inputs imply a 8.49% cost of equity and a 5.37% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Home Depot, Inc. Common Stock (HD) WACC Results
Weighted Average Cost of Capital
7.99%
Cost of Equity
8.49%
Risk-Free Rate4.74%
Beta0.83
Market Risk Premium4.23%
Cost of Debt
4.24%
Pre-Tax Cost of Debt5.37%
Tax Rate21.00%
Tax Shield1.13%
Capital Structure
Equity: 88.19%($334.64B)
Debt: 11.81%($44.83B)
Equity Component
7.49%
88.19% × 8.49%
Debt Component
0.50%
11.81% × 4.24%

Home Depot, Inc. (HD) WACC in context

Home Depot, Inc. (HD) currently screens with an estimated WACC of 7.99%. That blends a 8.49% cost of equity, a 5.37% pre-tax cost of debt, and a 88.19% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What HD WACC implies

A 7.99% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates HD

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.83 and equity accounts for 88.19% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.

HD WACC: 7.99% — Home Depot, Inc. Cost of Capital (August 2026) | DeepViews