The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$4,357.11||$5,225.78||$5,589.00||$7,058.00||$7,731.50|
|Source||Analyst x9||Analyst x9||Analyst x5||Analyst x2||Analyst x2|
Discounted (@ 8.9%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $7,732 × (1 + 2.47%) ÷ (8.9% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$103,213 = $22,800 + $80,412
Value = Total value / Shares Outstanding ($103,213 / 830)Discount to Share Price
Value per share:
Current discount (share price of $97.49): 21.63%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 8.9% = 2.47% + (0.854 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($80,395,504,243).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
0.854 = 0.763 (1 + (1- 40%) (19.95%))
Levered Beta used in calculation = 0.854
Mr. Robert Alan Niblock has been the Chief Executive Officer of Lowe's Companies, Inc. since January 28, 2005. Mr. Niblock has been the President of Lowe's Companies Inc. since May 2011. He joined Lowe's Companies, Inc. in 1993 and served as its Executive Vice President from 2001 to 2003, Chief Financial Officer from 2000 to 2003, Senior Vice President of Finance from 1999 to 2000 and Vice President & Treasurer from 1997 to 1998. He held a nine-year career with accounting firm Ernst & Young. He served as the Chairman of the Board at Retail Industry Leaders Association from 2008 to 2009 and Vice Chairman from 2006 to 2007. He serves as the Chairman of Lowe's Companies, Inc. He has been a Director of ConocoPhillips Co., Inc. and ConocoPhillips (U.K.) Limited since February 12, 2010. He has been a Director at Lowe's Companies, Inc. since April 5, 2004. He has been a Director/Member of Retail Industry Leaders Association since 2003. He served as Director of Hydrox Holdings Pty Ltd from October 22, 2009 to August 10, 2016. He is a Certified Public Accountant. Mr. Niblock holds a Bachelor's degree in Accounting from the University of North Carolina-Charlotte.
Average tenure and age of the Lowe's Companies management team in years:
Average tenure and age of the Lowe's Companies board of directors in years:
Lowe's Companies Inc (NYSE:LOW) has returned to shareholders over the past 10 years, an average dividend yield of 2.00% annually. … Does Lowe's Companies tick all the boxes of a great dividend stock? … Check out our latest analysis for Lowe's Companies 5 checks you should use to assess a dividend stock When researching a dividend stock, I always follow the following screening criteria: Is it paying an annual yield above 75% of dividend payers?Simply Wall St - – Full article
View our latest analysis for Lowe's Companies How I analyze a dividend stock If you are a dividend investor, you should always assess these five key metrics: Does it pay an annual yield higher than 75% of dividend payers? … NYSE:LOW Historical Dividend Yield Jan 19th 18 How well does Lowe's Companies fit our criteria? … Lowe's Companies has a payout ratio of 36.59%, meaning the dividend is sufficiently covered by earnings.Simply Wall St - – Full article
By calculating LOW's profit margin, we can take a closer look at this ability and use it to understand what is driving earnings growth. … Margin Calculation for LOW Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 3.53 Billion ÷ 68.91 Billion = 5.12% The past five years have seen Lowe's Companies's margin expand, due to a 8.56% average growth in net income outstripping average revenue growth of 5.15%, which suggests that the company has been able to convert a larger percentage of revenue into net income whilst grow their top line at the same time. … Understanding what could be driving Lowe's Companies's future earnings Based on future expectations, LOW's profit margin will keep on expanding, with an expectation of 3.61% in annual revenue growth and 7.94% earnings growth expected annually.Simply Wall St - – Full article
LOW is available at a PE (price-to-earnings) ratio of 22.15x today, which tells us the stock is overvalued based on current earnings compared to the specialty retail industry average of 17.96x , and overvalued compared to the US market average ratio of 19.68x. … Based on Lowe's Companies's predicted 20.52% growth in earnings next year and PE ratio of 22.15x we see that Lowe's Companies has a quite high PEG ratio of 2.76x. … This tells us that when including its growth in our analysis Lowe's Companies's stock can be considered overvalued , based on the fundamentals.Simply Wall St - – Full article
View our latest analysis for Lowe's Companies Breaking down ROE — the mother of all ratios Return on Equity (ROE) is a measure of Lowe's Companies’s profit relative to its shareholders’ equity. … For now, let’s just look at the cost of equity number for Lowe's Companies, which is 9.17%. … This means Lowe's Companies returns enough to cover its own cost of equity, with a buffer of 47.96%.Simply Wall St - – Full article
How does LOW’s operating cash flow stack up against its debt? … LOW’s recent operating cash flow was 0.36 times its debt within the past year. … Although LOW’s debt level is towards the higher end of the spectrum, investors shouldn’t panic since its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised.Simply Wall St - – Full article
Below, I've laid out key numbers on how market analysts predict Lowe's Companies's earnings growth outlook over the next few years and whether the future looks even brighter than the past. … Check out our latest analysis for Lowe's Companies Market analysts' consensus outlook for next year seems optimistic, with earnings climbing by a robust 14.20%. … This means, we can assume Lowe's Companies will grow its earnings by 8.10% every year for the next few years.Simply Wall St - – Full article
5-year cash flow estimate 2017 2018 2019 2020 2021 Levered FCF (USD, Millions) $4,023.17 $4,404.43 $4,741.13 $4,994.25 $5,299.00 Source Analyst x12 Analyst x7 Analyst x8 Analyst x4 Analyst x2 Present Value Discounted @ 10.89% $3,628.17 $3,582.02 $3,477.28 $3,303.30 $3,160.76 Present Value of 5-year Cash Flow (PVCF)= $17,152 We now need to calculate the Terminal Value, which accounts for all the future cash flows after the five years. … Terminal Value (TV) = FCF2021 × (1 + g) ÷ (r – g) = $5,299 × (1 + 2.5%) ÷ (10.9% – 2.5%) = $64,511 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $64,511 / ( 1 + 10.9%)5 = $38,480 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is $55,631. … NYSE:LOW Intrinsic Value Nov 21st 17 The assumptions I'd like to point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.Simply Wall St - – Full article
Lowe's Companies Inc (NYSE:LOW)’s impressive earnings growth per share is expected to be a big double-digit 72.43% over the next three years. … This indicates a relatively solid earnings per share growth rate of 72.43% over the next few years, which is an optimistic outlook in the near term. … LOW’s earnings growth the past couple of years was 75.72% which indicates that the company's past performance will continue to persist into the future.Simply Wall St - – Full article
If you are interested in cashing in on Lowe's Companies Inc's (NYSE:LOW) upcoming dividend of $0.41 per share, you only have 3 days left to buy the shares before its ex-dividend date, 24 October 2017, in time for dividends payable on the 08 November 2017. … View our latest analysis for Lowe's Companies 5 questions I ask before picking a dividend stock Whenever I am looking at a potential dividend stock investment, I always check these five metrics: Is it paying an annual yield above 75% of dividend payers? … NYSE:LOW Historical Dividend Yield Oct 20th 17 Does Lowe's Companies pass our checks?Simply Wall St - – Full article
Lowe's Companies, Inc. operates as a home improvement company in the United States, Canada, and Mexico. It offers a line of products for maintenance, repair, remodeling, and decorating. The company provides home improvement products in various categories, such as lumber and building materials, tools and hardware, appliances, fashion fixtures, rough plumbing and electrical, seasonal living, lawn and garden, paint, millwork, flooring, kitchens, outdoor power equipment, and home fashions. It also offers installation services through independent contractors in various product categories; extended protection plans; and in-warranty and out-of-warranty repair services. The company sells its national brand-name merchandise and private branded products to homeowners, renters, and professional customers; and retail customers comprising individual homeowners and renters. As of March 24, 2017, it operated 2,365 home improvement and hardware stores. The company also sells its products through online sites comprising Lowes.com and Lowesforpros.com; and through mobile applications. Lowe's Companies, Inc. was founded in 1946 and is headquartered in Mooresville, North Carolina.
|Name:||Lowe's Companies, Inc.|
Lowe's Companies, Inc.
1000 Lowe’s Boulevard,
North Carolina, 28117,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NYSE||LOW||Common Stock||New York Stock Exchange||US||USD||02. Jan 1969|
|DB||LWE||Common Stock||Deutsche Boerse AG||DE||EUR||02. Jan 1969|
|LSE||0JVQ||Common Stock||London Stock Exchange||GB||USD||02. Jan 1969|
|BMV||LOW *||Common Stock||Bolsa Mexicana de Valores||MX||MXN||02. Jan 1969|
|Home Improvement Retail|
|Company Analysis updated:||2018/02/24|
|Last estimates confirmation:||2018/02/23|
|Last earnings update:||2017/11/03|
|Last annual earnings update:||2017/02/03|
All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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 here.