Home Depot vs Lowe's Companies: Fair Value & Quality
Both stocks run through our valuation models. Here is how Home Depot (HD) and Lowe's Companies (LOW) compare, as of Aug 14, 2026.
As of Aug 14, 2026, Fair Value Calculator sees Lowe's Companies as the less overvalued of the two: Home Depot trades at $342 versus a fair value of $237 (-31%), while Lowe's Companies trades at $218 versus $186 (-15%).
Home Depot
HD · USD · Consumer Discretionary
-31%
upside to fair value
overvalued
Price$342
Fair Value$237
Quality57/100
Lowe's Companies
LOW · USD · Consumer Discretionary
-15%
upside to fair value
overvalued
Price$218
Fair Value$186
Quality66/100
Head-to-head numbers
Green value = the better side for that row (for valuation multiples: lower = cheaper).
Home DepotLowe's Companies
Valuation
24.4×P/E (TTM)18.4×
2.06×P/S (TTM)1.32×
26.72×P/B—
15.5×EV/EBITDA12.1×
1.94×PEG1.36×
2.1%Dividend yield2.3%
$6.93Dividend per share$4.80
Profitability
8%Net margin8%
12%Operating margin11%
128%Return on equity—
13%Return on assets13%
Growth
5%Revenue growth (YoY)10%
1.5%Avg. growth/yr (3Y)-3.8%
4.5%Avg. growth/yr (5Y)-0.8%
Balance & size
3.62×Debt / equity—
$342BMarket cap$116B
healthyGrowth qualityweak
Lowe's Companies leads: 4 to 7 metric wins.
Dash = not meaningfully computable, for example with negative equity.
Quality in detail
The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.
Home Depotof which business quality 55 · market factors 46Lowe's Companiesof which business quality 64 · market factors 38
ProfitabilityMargins and returns on capital today
83
78
Quality GrowthAre margins and returns improving?
30
28
CashflowEarnings quality: real cash, not paper profit
InvestmentDisciplined investing over empire-building
48
83
Low VolatilityCalm price path (market factor)
71
73
MomentumPrice trend over the last 3–12 months (market factor)
37
25
52W MomentumDistance to the 52-week high (market factor)
31
20
Net IssuanceBuybacks instead of dilution
84
97
What the models say
The median fair value (base case) per model family, each in the currency of its trading venue. Green = above the current price, red = below.
Home Depot
DCF Models$247
Earnings-Based$129
Dividend Discount$174
Multiples$227
Asset-Based$8.61
Growth DCF$193
Economic Profit$128
Growth Earnings$285
26 of 26 models see the stock below the current price.
Lowe's Companies
DCF Models$182
Earnings-Based$86.77
Dividend Discount$80.68
Multiples$199
Growth DCF$158
Economic Profit$117
Growth Earnings$231
19 of 23 models see the stock below the current price.
Scenario ranges
From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.
Home Depot
Bear $129Fair Value $237Bull $312
$342 = current price (white tick)
Lowe's Companies
Bear $97.82Fair Value $186Bull $252
$218 = current price (white tick)
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Ranked within their sector
Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.
Home Depot · Consumer Discretionary
Quality score57 · above median
Fair value upside-31% · below median
Lowe's Companies · Consumer Discretionary
Quality score66 · Top 25%
Fair value upside-15% · below median
Bottom line
As of Aug 14, 2026, Fair Value Calculator sees Lowe's Companies as the less overvalued of the two: Home Depot trades at $342 versus a fair value of $237 (-31%), while Lowe's Companies trades at $218 versus $186 (-15%).
Lowe's Companies has the higher quality score (66/100).
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A model-based valuation snapshot from 21 models. Values change with price and fundamentals; the date shown above applies.
