Lowe's Companies, Inc.

WBAG:LOWE Stock Report

Market Cap: €145.2b

Lowe's Companies Valuation

Is LOWE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of LOWE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LOWE (€257.75) is trading below our estimate of fair value (€389.01)

Significantly Below Fair Value: LOWE is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LOWE?

Key metric: As LOWE is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for LOWE. This is calculated by dividing LOWE's market cap by their current earnings.
What is LOWE's PE Ratio?
PE Ratio22.3x
EarningsUS$6.91b
Market CapUS$152.83b

Price to Earnings Ratio vs Peers

How does LOWE's PE Ratio compare to its peers?

The above table shows the PE ratio for LOWE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average29.7x
HD Home Depot
27.9x6.9%US$405.4b
FND Floor & Decor Holdings
56.2x17.6%US$11.0b
KGF Kingfisher
15x13.5%UK£5.2b
HMPRO Home Product Center
19.7x1.8%฿127.6b
LOWE Lowe's Companies
22.3x5.5%€152.8b

Price-To-Earnings vs Peers: LOWE is good value based on its Price-To-Earnings Ratio (22.3x) compared to the peer average (29.7x).

Price to Earnings Ratio vs Industry

How does LOWE's PE Ratio compare vs other companies in the European Specialty Retail Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
LOWE 22.3xIndustry Avg. 16.4xNo. of Companies12PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LOWE is expensive based on its Price-To-Earnings Ratio (22.3x) compared to the European Specialty Retail industry average (16.4x).

Price to Earnings Ratio vs Fair Ratio

What is LOWE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LOWE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate LOWE's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst LOWE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€244.90
€249.62
+1.9%
10.4%€298.61€187.67n/a34
Oct ’25€244.20
€233.65
-4.3%
9.2%€275.72€182.31n/a33
Sep ’25€222.60
€227.74
+2.3%
7.8%€259.81€181.87n/a32
Aug ’25€224.10
€229.66
+2.5%
8.2%€266.02€184.38n/a32
Jul ’25€200.65
€233.16
+16.2%
8.2%€270.08€187.19n/a32
Jun ’25€201.05
€231.83
+15.3%
8.0%€267.29€185.26n/a32
May ’25€214.20
€237.23
+10.8%
8.5%€272.46€184.14n/a33
Apr ’25€234.80
€232.32
-1.1%
8.3%€267.55€180.83n/a34
Mar ’25€224.15
€228.73
+2.0%
7.8%€258.38€180.87n/a32
Feb ’25€199.24
€212.43
+6.6%
10.5%€265.88€157.32n/a32
Jan ’25€201.40
€207.22
+2.9%
11.4%€263.58€155.42n/a33
Dec ’24€185.90
€205.93
+10.8%
11.4%€264.31€155.85n/a33
Nov ’24€180.92
€228.69
+26.4%
10.9%€273.15€169.54€244.9032
Oct ’24€198.20
€235.58
+18.9%
9.1%€273.82€169.96€244.2031
Sep ’24€216.25
€226.69
+4.8%
9.3%€266.37€165.33€222.6030
Aug ’24€213.35
€214.45
+0.5%
11.2%€263.73€140.05€224.1031
Jul ’24€205.45
€212.05
+3.2%
11.1%€266.25€141.39€200.6531
Jun ’24€187.28
€214.31
+14.4%
11.1%€271.35€144.10€201.0531
May ’24€183.46
€209.07
+14.0%
11.7%€264.34€137.64€214.2030
Apr ’24€181.00
€210.76
+16.4%
12.0%€275.07€138.45€234.8030
Mar ’24€181.28
€216.70
+19.5%
12.6%€281.37€142.56€224.1530
Feb ’24€188.36
€214.88
+14.1%
13.0%€273.09€138.37€199.2429
Jan ’24€188.60
€224.14
+18.8%
13.5%€282.63€143.20€201.4029
Dec ’23€203.20
€234.70
+15.5%
13.4%€292.86€148.38€185.9027
Nov ’23€195.80
€243.92
+24.6%
12.8%€303.72€160.97€180.9227

Analyst Forecast: Target price is less than 20% higher than the current share price.

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