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 19.33 is considered Fairly compared with the five-year average of 17.39. The fair price of Lowe's Companies Inc (LOW) is between 229.54 to 279.54 according to relative valuation methord.
Relative Value
Fair Zone
229.54-279.54
Current Price：246.94
Fair
19.26
PE
1Y
3Y
5Y
Trailing
Forward
14.01
EV/EBITDA
Lowe's Companies Inc. (LOW) has a current EV/EBITDA of 14.01. The 5-year average EV/EBITDA is 12.61. The thresholds are as follows: Strongly Undervalued below 9.80, Undervalued between 9.80 and 11.20, Fairly Valued between 14.01 and 11.20, Overvalued between 14.01 and 15.42, and Strongly Overvalued above 15.42. The current Forward EV/EBITDA of 14.01 falls within the Historic Trend Line -Fairly Valued range.
16.58
EV/EBIT
Lowe's Companies Inc. (LOW) has a current EV/EBIT of 16.58. The 5-year average EV/EBIT is 14.66. The thresholds are as follows: Strongly Undervalued below 11.08, Undervalued between 11.08 and 12.87, Fairly Valued between 16.45 and 12.87, Overvalued between 16.45 and 18.23, and Strongly Overvalued above 18.23. The current Forward EV/EBIT of 16.58 falls within the Overvalued range.
1.50
PS
Lowe's Companies Inc. (LOW) has a current PS of 1.50. The 5-year average PS is 1.49. The thresholds are as follows: Strongly Undervalued below 1.16, Undervalued between 1.16 and 1.33, Fairly Valued between 1.66 and 1.33, Overvalued between 1.66 and 1.82, and Strongly Overvalued above 1.82. The current Forward PS of 1.50 falls within the Historic Trend Line -Fairly Valued range.
16.20
P/OCF
Lowe's Companies Inc. (LOW) has a current P/OCF of 16.20. The 5-year average P/OCF is 13.41. The thresholds are as follows: Strongly Undervalued below 9.91, Undervalued between 9.91 and 11.66, Fairly Valued between 15.15 and 11.66, Overvalued between 15.15 and 16.90, and Strongly Overvalued above 16.90. The current Forward P/OCF of 16.20 falls within the Overvalued range.
16.36
P/FCF
Lowe's Companies Inc. (LOW) has a current P/FCF of 16.36. The 5-year average P/FCF is 17.75. The thresholds are as follows: Strongly Undervalued below 8.03, Undervalued between 8.03 and 12.89, Fairly Valued between 22.61 and 12.89, Overvalued between 22.61 and 27.47, and Strongly Overvalued above 27.47. The current Forward P/FCF of 16.36 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 -9.61 , the current P/B ratio is approximately 38.90% higher. Relative to its 5-year average P/B ratio of -35.35, the current P/B ratio is about -62.25% higher. Lowe's Companies Inc (LOW) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 5.33%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 5.48% , the current FCF yield is about -100.00% lower.
-13.30
P/B
Median3y
-9.61
Median5y
-35.35
5.09
FCF Yield
Median3y
5.33
Median5y
5.48
Competitors Valuation Multiple
The average P/S ratio for LOW's competitors is 0.00, providing a benchmark for relative valuation. Lowe's Companies Inc Corp (LOW) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 3.19%, 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 0.26% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 19.59 to 20.41.
The secondary factor is the Revenue Growth, contributed 3.19%to the performance.
Overall, the performance of LOW in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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