Home Depot: Will The Impact Of The Data Breach Be Significant?

From: Forbes

Trefis Team


Based on our calculations, we arrive at an estimated cost of $176 per compromised record in recurring expenses or a total cost of approximately $10 billion to be incurred by the end of the decade. On account of disruptions in business and lost business, we expect a modest 6% fall in EBITDA going into 2017, which is expected to once again reach it’s forecasted levels by the decade-end as consumers regain confidence in the retailer. The management’s candidness in the face of adversity, and the steps that they have taken to mitigate the chances of such an attack in the future, in terms of investment in cyber security, could recoup confidence among existing customers and also increase appeal among new ones. We expect higher capital expenses as the retailer continues to invest in cyber security enhancements, such as enhanced encryptions and EMV Chip-and-PIN technology. Taking all these factors into account, we anticipate a modest 4% downside to our current price estimate on account of the breach for Home Depot.

See our complete analysis for Home Depot in the scenario of the data breach

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