Lowe's Companies, Inc.

DB:LWE Stock Report

Market Cap: €145.2b

Lowe's Companies Valuation

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 (€254) is trading below our estimate of fair value (€391.87)

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 Ratio22.3x
EarningsUS$6.91b
Market CapUS$152.83b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.8x
HBM HORNBACH Baumarkt
25xn/a€1.9b
HBH HORNBACH Holding KGaA
7.5x6.8%€1.3b
ZAL Zalando
34.6x22.0%€7.1b
HD Home Depot
27.9x6.9%US$405.4b
LWE Lowe's Companies
22.3x5.5%€152.8b

Price-To-Earnings vs Peers: LWE is good value based on its Price-To-Earnings Ratio (22.3x) compared to the peer average (23.8x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
LWE 22.3xIndustry Avg. 16.4xNo. of Companies12PE01020304050+
3 CompaniesEstimated GrowthMarket 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 Ratio22.3x
Fair PE Ratio18.4x

Price-To-Earnings vs Fair Ratio: LWE is expensive based on its Price-To-Earnings Ratio (22.3x) compared to the estimated Fair Price-To-Earnings Ratio (18.4x).

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 LWE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€241.40
€249.62
+3.4%
10.4%€298.61€187.67n/a34
Oct ’25€245.40
€233.65
-4.8%
9.2%€275.72€182.31n/a33
Sep ’25€221.90
€227.74
+2.6%
7.8%€259.81€181.87n/a32
Aug ’25€228.60
€229.66
+0.5%
8.2%€266.02€184.38n/a32
Jul ’25€204.95
€233.16
+13.8%
8.2%€270.08€187.19n/a32
Jun ’25€198.14
€231.83
+17.0%
8.0%€267.29€185.26n/a32
May ’25€216.50
€237.23
+9.6%
8.5%€272.46€184.14n/a33
Apr ’25€234.90
€232.32
-1.1%
8.3%€267.55€180.83n/a34
Mar ’25€224.20
€228.73
+2.0%
7.8%€258.38€180.87n/a32
Feb ’25€198.06
€212.43
+7.3%
10.5%€265.88€157.32n/a32
Jan ’25€200.75
€207.22
+3.2%
11.4%€263.58€155.42n/a33
Dec ’24€181.56
€205.93
+13.4%
11.4%€264.31€155.85n/a33
Nov ’24€179.84
€228.69
+27.2%
10.9%€273.15€169.54€241.4032
Oct ’24€195.72
€235.58
+20.4%
9.1%€273.82€169.96€245.4031
Sep ’24€213.30
€226.69
+6.3%
9.3%€266.37€165.33€221.9030
Aug ’24€211.95
€214.45
+1.2%
11.2%€263.73€140.05€228.6031
Jul ’24€203.90
€212.05
+4.0%
11.1%€266.25€141.39€204.9531
Jun ’24€187.22
€214.31
+14.5%
11.1%€271.35€144.10€198.1431
May ’24€184.66
€209.07
+13.2%
11.7%€264.34€137.64€216.5030
Apr ’24€175.92
€210.76
+19.8%
12.0%€275.07€138.45€234.9030
Mar ’24€181.62
€216.70
+19.3%
12.6%€281.37€142.56€224.2030
Feb ’24€191.50
€214.88
+12.2%
13.0%€273.09€138.37€198.0629
Jan ’24€188.42
€224.14
+19.0%
13.5%€282.63€143.20€200.7529
Dec ’23€202.35
€234.70
+16.0%
13.4%€292.86€148.38€181.5627
Nov ’23€196.56
€243.92
+24.1%
12.8%€303.72€160.97€179.8427

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

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