Home Depot
In order to answer the main question of the price to be paid within one year time for 100 shares of the company, it is important to know the price of one share at that point of time based upon the past performance of the shares and its' expected movements. If compared the price and performance of the Home Depot shares since 1984, which is the time since when the sahres were actively traded on the market, with the performance of the Standard & Poors index, the shares sometimes were outperforming the market while sometimes were underperforming.
Simplistic examination of the chart of the perfromance of the shares compared with the index perfomance can leas us to the conclusion that the company beta is greater than zero and in case of further positive market performance and strengthening investment opportunities, the company is expected to be doing well which will translate into good shares performance. For the last five years the dividends paid out to the shareholders were also increasing, and the expected dividends to be paid out in the next year are at the rate of $0,15 per one share, which equals to about $0,45 of annual dividends.
According to the simple Dividend Discount Model, as the majority of the investors are knowledgable and can read the market efficiently, the present price of the share equals to the sum of the dividend and capital yield discounted by the expected rate of return for the shares of the same risk which can be considered as opportunity costs of holding the capital in Home Depot shares.
P0 = DIV1+ P1 / (1 + r)
Since 1984 the price of the sahres has risen from $0,31 up to $41,36 during the previous days. Expected daily return on the sahres, or variations in the share prices since 2000 is 0,004%r or 1,45,% annual return, while expected (average for the previous 21 yearsm since 1990) return on annual basis, which equals share appreciation plus dividend yield, amounted to about 30%. So, the long-term share holders have experienced much higher yields than investors that...
Home Depot Mission statement / goal of company/vision The Home Depot, Inc. has established itself above and beyond its competitors by employing a development approach of building up its core capabilities by providing each consumer a distinctive encounter via shop modernization, having a number of exclusive products, offering top quality service representatives, and specialized information technologies. Subsidiaries associated with Home Depot, Inc. offer specialized solutions to equally the individual property owner along
Home Depot is the largest home improvement retailer in the world and one of the biggest retailers. It has consistently grown over the past decades, since its start at the end of the 1970s, and has expanded into Canada, Mexico and China. It has diversified its network of suppliers and continues to offer a large array of products to its clients. Competition remains significant, both with the presence of Lowe's on
Home Depot Industry overview about home depot and its position in the Market in comparison to its closest competitor Lowe's Home Depot Inc. became a corporation in 1978 and currently has over 1500 stores. The stores are full service warehouse style, stores that sell more than 40,000 products related to home improvement. (HD Full Description) Multex Investor also reports that, Home Depot operates four wholly owned subsidiaries: Georgia Lighting, Inc., Apex Supply Company,
Furthermore, the Home Depot employs many community members providing them with a livelihood enabling them to earn a living. Additionally, the special activities of the Home Depot in the community in which they are located results in benefits realized by community members in various areas such as housing, workshops, clinics, and other specialized services of the Home Depot. The slogan used by the Home Depot of "you can do
Apart from that there is another type of risk which can surface even in case the market continues its upward march. In the event employees exercise their ESOPs in huge numbers, external shareholders could oppose the diluting impact of these option grants on the value of their shares. A situation might crop up that old possible tensions among employee interests and shareholder interests are not all of a sudden
International Presence Home Depot has major presence in Canada other United States and has successfully established its business in the country. Before Home Depot Canadian home improvement market was ruled by Rona chain of stores which also has a number of branches all over the country. After penetrating the market Home Depot challenged the position of Rona and now is in cut throat competition with it as Home Depot also has
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