Lowe's Companies, Inc.

NYSE:LOW Stock Report

Market Cap: US$146.5b

Lowe's Companies Valuation

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

Below Fair Value: LOW ($263.03) is trading below our estimate of fair value ($385.04)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LOW. This is calculated by dividing LOW's market cap by their current earnings.
What is LOW's PE Ratio?
PE Ratio21.7x
EarningsUS$6.83b
Market CapUS$146.48b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LOW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average50.2x
HD Home Depot
27.2x6.9%US$404.1b
FND Floor & Decor Holdings
56.8x17.6%US$10.7b
TJX TJX Companies
28.4x7.3%US$134.8b
BWMX Betterware de MéxicoP.I. de
88.4x36.4%US$3.9b
LOW Lowe's Companies
21.7x5.9%US$146.5b

Price-To-Earnings vs Peers: LOW is good value based on its Price-To-Earnings Ratio (21.7x) compared to the peer average (50.2x).

Price to Earnings Ratio vs Industry

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

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TKLF Tokyo Lifestyle
2xn/aUS$14.40m
SSOK Sunstock
2.3xn/aUS$771.79k
MASN Maison Luxe
0.09xn/aUS$192.03k
CONN.Q Conn's
n/an/aUS$2.49k
LOW 21.7xIndustry Avg. 16.7xNo. of Companies11PE01224364860+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LOW is expensive based on its Price-To-Earnings Ratio (21.7x) compared to the US Specialty Retail industry average (16.7x).

Price to Earnings Ratio vs Fair Ratio

What is LOW'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.

LOW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.7x
Fair PE Ratio20.6x

Price-To-Earnings vs Fair Ratio: LOW is expensive based on its Price-To-Earnings Ratio (21.7x) compared to the estimated Fair Price-To-Earnings Ratio (20.6x).

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 LOW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$263.03
US$281.36
+7.0%
9.5%US$310.00US$216.00n/a34
Nov ’25US$261.94
US$270.00
+3.1%
10.4%US$323.00US$203.00n/a34
Oct ’25US$272.64
US$260.16
-4.6%
9.2%US$307.00US$203.00n/a33
Sep ’25US$248.50
US$254.21
+2.3%
7.8%US$290.00US$203.00n/a32
Aug ’25US$241.36
US$250.36
+3.7%
8.2%US$290.00US$201.00n/a32
Jul ’25US$213.56
US$250.36
+17.2%
8.2%US$290.00US$201.00n/a32
Jun ’25US$221.29
US$251.52
+13.7%
8.0%US$290.00US$201.00n/a32
May ’25US$227.52
US$252.51
+11.0%
8.5%US$290.00US$196.00n/a33
Apr ’25US$249.28
US$251.81
+1.0%
8.3%US$290.00US$196.00n/a34
Mar ’25US$244.69
US$247.87
+1.3%
7.8%US$280.00US$196.00n/a32
Feb ’25US$220.23
US$230.90
+4.8%
10.5%US$289.00US$171.00n/a32
Jan ’25US$222.55
US$227.99
+2.4%
11.4%US$290.00US$171.00n/a33
Dec ’24US$203.92
US$225.95
+10.8%
11.4%US$290.00US$171.00n/a33
Nov ’24US$191.29
US$242.80
+26.9%
10.9%US$290.00US$180.00US$261.9432
Oct ’24US$207.84
US$249.50
+20.0%
9.1%US$290.00US$180.00US$272.6431
Sep ’24US$232.51
US$246.80
+6.1%
9.3%US$290.00US$180.00US$248.5030
Aug ’24US$232.35
US$235.81
+1.5%
11.2%US$290.00US$154.00US$241.3631
Jul ’24US$225.70
US$230.97
+2.3%
11.1%US$290.00US$154.00US$213.5631
Jun ’24US$203.92
US$229.03
+12.3%
11.1%US$290.00US$154.00US$221.2931
May ’24US$208.22
US$229.37
+10.2%
11.7%US$290.00US$151.00US$227.5230
Apr ’24US$199.97
US$229.87
+15.0%
12.0%US$300.00US$151.00US$249.2830
Mar ’24US$194.31
US$231.05
+18.9%
12.6%US$300.00US$152.00US$244.6930
Feb ’24US$213.56
US$236.05
+10.5%
13.0%US$300.00US$152.00US$220.2329
Jan ’24US$199.24
US$237.91
+19.4%
13.5%US$300.00US$152.00US$222.5529
Dec ’23US$215.48
US$240.43
+11.6%
13.4%US$300.00US$152.00US$203.9227
Nov ’23US$193.55
US$240.94
+24.5%
12.8%US$300.00US$159.00US$191.2927

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

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