Today The Home Depot (NYSE:HD) reported earnings of $1.24 per share beating expectation by $0.03 per share. This is not only a good sign for the company but also a good sign for the general economy, the Home Depot is one of the top home improvement stores, strong earnings means people are spending money on their home. The housing market has been depressed since the 2008 recession and has been struggling to gain momentum. According to the company, there was a strong increase in demand in the second quarter. Moreover, The Home Depot has strengthen their 2013 fiscal guidance, they expect 4.5% increase in sales. The Home Depot also expects sales in 2013 to be $3.60, 20% better than last year. This gives the company a forward P/E of about 21. I usually like blue chip companies to have P/Es between 10 and 15. All and all, this is a blue chip company so it has a strong balance sheet and a large amount of assets. The question to the value investor is whether the stock price is too high or just right?