Lowe's Companies Valuation

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

LWE (CHF232.25) is trading below our estimate of [[fair value]] (CHF371.26)

Is LWE 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 LWE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LWE (CHF232.25) is trading below our estimate of fair value (CHF371.26)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LWE. This is calculated by dividing LWE's market cap by their current earnings.
What is LWE's PE Ratio?
PE Ratio	22.3x
Earnings	US$6.91b
Market Cap	US$154.17b

LWE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.3x
Enterprise Value/EBITDA	15.3x
PEG Ratio	4.1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LWE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	34.1x
HD Home Depot	27.9x	6.9%	US$405.4b
AVOL Avolta	39.8x	23.1%	CHF 5.0b
FND Floor & Decor Holdings	56.2x	17.6%	US$11.0b
MOZN mobilezone holding ag	12.4x	9.7%	CHF 605.7m
LWE Lowe's Companies	22.3x	5.5%	CHF 154.2b

Price-To-Earnings vs Peers: LWE is good value based on its Price-To-Earnings Ratio (22.3x) compared to the peer average (34.1x).

Price to Earnings Ratio vs Industry

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

3 Companies	Price / Earnings	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: LWE 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 LWE'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.

LWE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	22.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate LWE'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?

Analyst Forecast: Insufficient data to show price forecast.

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