LOW PE Ratio & Valuation,Is LOW Overvalued

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 Undervalued zone, suggesting that its current forward PE ratio of 19.35 is considered Undervalued compared with the five-year average of 17.42. The fair price of Lowe's Companies Inc (LOW) is between 283.89 to 336.02 according to relative valuation methord. Compared to the current price of 256.41 USD , Lowe's Companies Inc is Undervalued By 9.68%.

Relative Value

Fair Zone

283.89-336.02

Current Price：256.41

9.68%

Undervalued

19.35

14.04

EV/EBITDA

Lowe's Companies Inc. (LOW) has a current EV/EBITDA of 14.04. The 5-year average EV/EBITDA is 12.64. The thresholds are as follows: Strongly Undervalued below 9.82, Undervalued between 9.82 and 11.23, Fairly Valued between 14.05 and 11.23, Overvalued between 14.05 and 15.47, and Strongly Overvalued above 15.47. The current Forward EV/EBITDA of 14.04 falls within the Historic Trend Line -Fairly Valued range.

16.64

EV/EBIT

Lowe's Companies Inc. (LOW) has a current EV/EBIT of 16.64. The 5-year average EV/EBIT is 14.70. The thresholds are as follows: Strongly Undervalued below 11.09, Undervalued between 11.09 and 12.90, Fairly Valued between 16.50 and 12.90, Overvalued between 16.50 and 18.31, and Strongly Overvalued above 18.31. The current Forward EV/EBIT of 16.64 falls within the Overvalued range.

1.50

Lowe's Companies Inc. (LOW) has a current PS of 1.50. The 5-year average PS is 1.50. The thresholds are as follows: Strongly Undervalued below 1.17, Undervalued between 1.17 and 1.33, Fairly Valued between 1.66 and 1.33, Overvalued between 1.66 and 1.83, and Strongly Overvalued above 1.83. The current Forward PS of 1.50 falls within the Historic Trend Line -Fairly Valued range.

16.19

P/OCF

Lowe's Companies Inc. (LOW) has a current P/OCF of 16.19. The 5-year average P/OCF is 13.39. The thresholds are as follows: Strongly Undervalued below 9.90, Undervalued between 9.90 and 11.65, Fairly Valued between 15.14 and 11.65, Overvalued between 15.14 and 16.88, and Strongly Overvalued above 16.88. The current Forward P/OCF of 16.19 falls within the Overvalued range.

16.35

P/FCF

Lowe's Companies Inc. (LOW) has a current P/FCF of 16.35. The 5-year average P/FCF is 17.36. The thresholds are as follows: Strongly Undervalued below 9.39, Undervalued between 9.39 and 13.37, Fairly Valued between 21.34 and 13.37, Overvalued between 21.34 and 25.32, and Strongly Overvalued above 25.32. The current Forward P/FCF of 16.35 falls within the Historic Trend Line -Fairly Valued range.

Lowe's Companies Inc (LOW) has a current Price-to-Book (P/B) ratio of -13.34. Compared to its 3-year average P/B ratio of -9.70 , the current P/B ratio is approximately 37.49% higher. Relative to its 5-year average P/B ratio of -36.19, the current P/B ratio is about -63.14% higher. Lowe's Companies Inc (LOW) has a Forward Free Cash Flow (FCF) yield of approximately 5.09%. Compared to its 3-year average FCF yield of 5.31%, the current FCF yield is approximately -4.06% lower. Relative to its 5-year average FCF yield of 5.42% , the current FCF yield is about -6.11% lower.

-13.34

P/B

Median3y

-9.70

Median5y

-36.19

5.09

FCF Yield

Median3y

5.31

Median5y

5.42

Competitors Valuation Multiple

The average P/S ratio for LOW's competitors is 0.81, providing a benchmark for relative valuation. Lowe's Companies Inc Corp (LOW) exhibits a P/S ratio of 1.50, which is 84.04% above the industry average. Given its robust revenue growth of 3.19%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of LOW decreased by 4.97% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 20.17B to 20.81B.

The secondary factor is the P/E Change, contributed -0.54%to the performance.

Overall, the performance of LOW in the past 1 year is driven by Revenue Growth. Which is more sustainable.

3.19%

20.17B → 20.81B

Revenue Growth

-7.62%

8.40 → 7.76

Margin Expansion

-0.54%

20.58 → 20.47

P/E Change

-4.97%

260.04 → 247.12

Mkt Cap Growth

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Frequently Asked Questions

Is Lowe's Companies Inc (LOW) currently overvalued or undervalued?

What is Lowe's Companies Inc (LOW) fair value?

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. The fair price of Lowe's Companies Inc (LOW) is between 283.89 to 336.02 according to relative valuation methord.

How does LOW's valuation metrics compare to the industry average?

What is the current P/B ratio for Lowe's Companies Inc (LOW) as of Jan 08 2026?

As of Jan 08 2026, Lowe's Companies Inc (LOW) has a P/B ratio of -13.34. This indicates that the market values LOW at -13.34 times its book value.

What is the current FCF Yield for Lowe's Companies Inc (LOW) as of Jan 08 2026?

As of Jan 08 2026, Lowe's Companies Inc (LOW) has a FCF Yield of 5.09%. This means that for every dollar of Lowe's Companies Inc’s market capitalization, the company generates 5.09 cents in free cash flow.

What is the current Forward P/E ratio for Lowe's Companies Inc (LOW) as of Jan 08 2026?

As of Jan 08 2026, Lowe's Companies Inc (LOW) has a Forward P/E ratio of 19.35. This means the market is willing to pay $19.35 for every dollar of Lowe's Companies Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Lowe's Companies Inc (LOW) as of Jan 08 2026?

As of Jan 08 2026, Lowe's Companies Inc (LOW) has a Forward P/S ratio of 1.50. This means the market is valuing LOW at $1.50 for every dollar of expected revenue over the next 12 months.

LOW Valuation