LOW Relative Valuation
LOW's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, LOW is overvalued; if below, it's undervalued.
Historical Valuation
Lowe's Companies Inc (LOW) is now in the Fair zone, suggesting that its current forward PE ratio of 17.98 is considered Fairly compared with the five-year average of 17.37. The fair price of Lowe's Companies Inc (LOW) is between 186.43 to 235.34 according to relative valuation methord.
Relative Value
Fair Zone
186.43-235.34
Current Price：225.00
Fair
17.76
PE
1Y
3Y
5Y
Trailing
Forward
12.57
EV/EBITDA
Lowe's Companies Inc. (LOW) has a current EV/EBITDA of 12.57. The 5-year average EV/EBITDA is 12.58. The thresholds are as follows: Strongly Undervalued below 9.75, Undervalued between 9.75 and 11.16, Fairly Valued between 14.00 and 11.16, Overvalued between 14.00 and 15.42, and Strongly Overvalued above 15.42. The current Forward EV/EBITDA of 12.57 falls within the Historic Trend Line -Fairly Valued range.
14.88
EV/EBIT
Lowe's Companies Inc. (LOW) has a current EV/EBIT of 14.88. The 5-year average EV/EBIT is 14.62. The thresholds are as follows: Strongly Undervalued below 11.02, Undervalued between 11.02 and 12.82, Fairly Valued between 16.42 and 12.82, Overvalued between 16.42 and 18.23, and Strongly Overvalued above 18.23. The current Forward EV/EBIT of 14.88 falls within the Historic Trend Line -Fairly Valued range.
225.00
PS
Lowe's Companies Inc. (LOW) has a current PS of 225.00. The 5-year average PS is 4.34. The thresholds are as follows: Strongly Undervalued below -46.89, Undervalued between -46.89 and -21.28, Fairly Valued between 29.95 and -21.28, Overvalued between 29.95 and 55.56, and Strongly Overvalued above 55.56. The current Forward PS of 225.00 falls within the Strongly Overvalued range.
11.11
P/OCF
Lowe's Companies Inc. (LOW) has a current P/OCF of 11.11. The 5-year average P/OCF is 13.37. The thresholds are as follows: Strongly Undervalued below 9.86, Undervalued between 9.86 and 11.62, Fairly Valued between 15.12 and 11.62, Overvalued between 15.12 and 16.87, and Strongly Overvalued above 16.87. The current Forward P/OCF of 11.11 falls within the Undervalued range.
17.55
P/FCF
Lowe's Companies Inc. (LOW) has a current P/FCF of 17.55. The 5-year average P/FCF is 17.95. The thresholds are as follows: Strongly Undervalued below 7.50, Undervalued between 7.50 and 12.73, Fairly Valued between 23.18 and 12.73, Overvalued between 23.18 and 28.41, and Strongly Overvalued above 28.41. The current Forward P/FCF of 17.55 falls within the Historic Trend Line -Fairly Valued range.
Lowe's Companies Inc (LOW) has a current Price-to-Book (P/B) ratio of -11.21. Compared to its 3-year average P/B ratio of -9.55 , the current P/B ratio is approximately 17.44% higher. Relative to its 5-year average P/B ratio of -34.98, the current P/B ratio is about -67.94% higher. Lowe's Companies Inc (LOW) has a Forward Free Cash Flow (FCF) yield of approximately 6.02%. Compared to its 3-year average FCF yield of 5.34%, the current FCF yield is approximately 12.73% lower. Relative to its 5-year average FCF yield of 5.51% , the current FCF yield is about 9.13% lower.
-11.07
P/B
Median3y
-9.55
Median5y
-34.98
0.06
FCF Yield
Median3y
5.34
Median5y
5.51
Competitors Valuation Multiple
The average P/S ratio for LOW's competitors is 68.31, providing a benchmark for relative valuation. Lowe's Companies Inc Corp (LOW) exhibits a P/S ratio of 225.00, which is 229.39% above the industry average. Given its robust revenue growth of 1.58%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of LOW decreased by 17.41% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 23.59B to 23.96B.
The secondary factor is the Margin Expansion, contributed -0.89%to the performance.
Overall, the performance of LOW in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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