Lowe's Companies Inc.

United States of America Country flag United States of America
Sector: Home Improvement Retailers
Ticker: LOW
Factsheet Factsheet

Market multiple valuation of Lowe's Companies Inc. ( LOW | USA)

The most common multiple used in the valuation of stocks is the P/Earnings NTM multiple (Price to Earnings). P/E relates the current share price with the market expectations in terms of Earnings Per Share. This multiple is used to compare a company's market value with its earnings. A company with a high P/Earnings NTM is considered to be overvalued; a company with a low P/Earnings NTM is considered to be undervalued.
The P/Earnings NTM ratio of Lowe's Companies Inc. is higher than the median of its peer group: around 14.00. The company valuation of Lowe's Companies Inc. according to these metrics is above the market valuation of its peer group.
The P/Earnings NTM ratio of Lowe's Companies Inc. is significantly higher than the average of its sector (Home Improvement Retailers): 10.35. The company valuation of Lowe's Companies Inc. according to these metrics is way above the market valuation of its sector.
The P/Earnings NTM ratio of Lowe's Companies Inc. is lower than its historical 5-year average: 16.9. The (current) company valuation of Lowe's Companies Inc. is therefore below its valuation average over the last five years.

Valuation
P/E Last P/E (e) 2021P/E NTM
Lowe's Companies Inc.Free trialFree trialFree trial
International PeersFree trialFree trialFree trial
Home Improvement Retailers7.227.3910.35
DJIA23.3619.8615.82
United States of America0.689.709.41
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Beta (Ref: DJIA)
Levered betaUnlevered beta
1-Year1.151.01
2-Year1.191.05
3-Year1.331.17
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Stock Perf excl. Dividends (in USD)
LOWDJIARel. Perf.
Year-to-Date-18.4%-5.5%-12.9%
1-Week0.5%1.8%-1.3%
1-Month8.8%7.9%0.9%
1-Year-16.5%-4.1%-12.4%
3-Year80.3%22.4%57.9%
5-Year166.2%45.8%120.4%
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International Peers - Lowe's Companies Inc.
Company NameCtryMarket
Cap.
last (mUSD)
Lowe's Companies Inc.USA130 949
International Peers Median1.02
The Home Depot Inc.USA334 124
Kingfisher PlcGBR5 789
Home Product Center PCLTHA5 289
HORNBACH Holding AG & C...DEU1 270
Wesfarmers LimitedAUS37 693
GPRV Analysis
Lowe's Companies Inc...
Intl. Peers
U.S Patents No. 7,882,001 & 8,082,201
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Net Sales Chart
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Quotes Chart

1-Year Rebased Stock Chart

  • Lowe's Companies Inc.
  • DJIA
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Did you know ?

On the Infront Analytics platform, there are two ways to identify the listed peers which most closely resemble a private firm:
- with Peer Tracker if you already know a listed peer.
Peer Tracker is a patented technology tool for building peer groups using industry classifications. The degree of similarity between two companies is calculated comparing their sector footprints and measured using comparability scores.
- with Market Screener if you have no listed peer in mind.
Market Screener is a dedicated interface for screening companies using multiple criteria, identifying peers, searching for comparable companies in a specific business sector.

About Market Multiples

Many methods can be used to value a company. In reality, business valuation is often a combination of these different approaches. One of the most widely used quantitative methods is the market multiples method. The market valuation is utilized generally as a primary market input, to provide an objective starting point for the valuation. Put simply, this method multiplies the sales or profits of a business by an industry averaged multiplier to calculate the Market Value of the business.
Current multiples include:
- Historical multiples based on standardized financials for the last completed fiscal period: Last, Last Twelve Months (LTM);
- Forward multiples based on consensus estimates for the current fiscal period and next ones: Next Twelve Months (NTM), FY0, FY1.
Current multiples based on per-share metrics (such as earnings per share or book value per share) are calculated using the last closing price, while current multiples based on company-level metrics (such as net sales, EBIT or EBITDA) are calculated using the current market cap or EV (Enterprise Value).