Lowe's Companies Valuation

Is 1LOW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 1LOW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€272.35
Fair Value
21.2% undervalued intrinsic discount
34
Number of Analysts

Below Fair Value: 1LOW (€214.75) is trading below our estimate of fair value (€272.35)

Significantly Below Fair Value: 1LOW is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1LOW?

Key metric: As 1LOW is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1LOW. This is calculated by dividing 1LOW's market cap by their current earnings.
What is 1LOW's PE Ratio?
PE Ratio18.8x
EarningsUS$6.94b
Market CapUS$127.16b

Price to Earnings Ratio vs Peers

How does 1LOW's PE Ratio compare to its peers?

The above table shows the PE ratio for 1LOW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.5x
HD Home Depot
24.4x6.0%US$349.1b
FND Floor & Decor Holdings
44.7x18.3%US$9.0b
KGF Kingfisher
14.4x9.7%UK£5.0b
BAN BasicNet
18.6xn/a€367.1m
1LOW Lowe's Companies
18.8x6.1%€127.2b

Price-To-Earnings vs Peers: 1LOW is good value based on its Price-To-Earnings Ratio (18.8x) compared to the peer average (25.5x).


Price to Earnings Ratio vs Industry

How does 1LOW's PE Ratio compare vs other companies in the European Specialty Retail Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1LOW 18.8xIndustry Avg. 18.1xNo. of Companies14PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1LOW is expensive based on its Price-To-Earnings Ratio (18.8x) compared to the European Specialty Retail industry average (17.5x).


Price to Earnings Ratio vs Fair Ratio

What is 1LOW'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.

1LOW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.8x
Fair PE Ratio25.8x

Price-To-Earnings vs Fair Ratio: 1LOW is good value based on its Price-To-Earnings Ratio (18.8x) compared to the estimated Fair Price-To-Earnings Ratio (25.8x).


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 1LOW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€214.75
€259.10
+20.7%
8.3%€286.13€200.94n/a34
Mar ’26€235.85
€269.19
+14.1%
8.7%€297.94€209.23n/a33
Feb ’26€252.45
€274.65
+8.8%
9.4%€307.50€210.19n/a34
Jan ’26€234.70
€270.52
+15.3%
9.4%€301.91€206.37n/a34
Dec ’25€258.95
€270.33
+4.4%
9.4%€297.69€207.42n/a34
Nov ’25€242.70
€249.62
+2.9%
10.4%€298.61€187.67n/a34
Oct ’25€244.35
€233.65
-4.4%
9.2%€275.72€182.31n/a33
Sep ’25€223.00
€227.74
+2.1%
7.8%€259.81€181.87n/a32
Aug ’25€223.75
€229.78
+2.7%
8.2%€266.16€184.48n/a32
Jul ’25€200.40
€233.16
+16.3%
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€224.25
€228.73
+2.0%
7.8%€258.38€180.87€235.8532
Feb ’25€198.88
€212.43
+6.8%
10.5%€265.88€157.32€252.4532
Jan ’25€201.25
€207.22
+3.0%
11.4%€263.58€155.42€234.7033
Dec ’24€185.78
€205.93
+10.8%
11.4%€264.31€155.85€258.9533
Nov ’24€181.02
€228.69
+26.3%
10.9%€273.15€169.54€242.7032
Oct ’24€198.06
€235.58
+18.9%
9.1%€273.82€169.96€244.3531
Sep ’24€216.45
€226.69
+4.7%
9.3%€266.37€165.33€223.0030
Aug ’24€213.25
€214.45
+0.6%
11.2%€263.73€140.05€223.7531
Jul ’24€205.50
€212.05
+3.2%
11.1%€266.25€141.39€200.4031
Jun ’24€187.46
€214.31
+14.3%
11.1%€271.35€144.10€201.0531
May ’24€186.08
€209.07
+12.4%
11.7%€264.34€137.64€214.2030
Apr ’24€180.96
€210.76
+16.5%
12.0%€275.07€138.45€234.8030
Mar ’24€181.34
€216.70
+19.5%
12.6%€281.37€142.56€224.2530
Analyst Price Target
Consensus Narrative from 34 Analysts
€258.01
Fair Value
16.8% undervalued intrinsic discount
34
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/03/24 17:29
End of Day Share Price 2025/03/24 00:00
Earnings2025/01/31
Annual Earnings2025/01/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Lowe's Companies, Inc. is covered by 64 analysts. 33 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Christopher GrajaArgus Research Company
Peter BenedictBaird
Ishan MajumdarBaptista Research