Lowe's Companies vs Home Depot: Fair Value & Quality
Both stocks run through our valuation models. Here is how Lowe's Companies (LOW) and Home Depot (HD) 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: Lowe's Companies trades at $218 versus a fair value of $186 (-15%), while Home Depot trades at $342 versus $237 (-31%).
Lowe's Companies
LOW · USD · Consumer Discretionary
-15%
upside to fair value
overvalued
Price$218
Fair Value$186
Quality66/100
Home Depot
HD · USD · Consumer Discretionary
-31%
upside to fair value
overvalued
Price$342
Fair Value$237
Quality57/100
Head-to-head numbers
Green value = the better side for that row (for valuation multiples: lower = cheaper).
Lowe's CompaniesHome Depot
Valuation
18.4×P/E (TTM)24.4×
1.32×P/S (TTM)2.06×
—P/B26.72×
12.1×EV/EBITDA15.5×
1.36×PEG1.94×
2.3%Dividend yield2.1%
$4.80Dividend per share$6.93
Profitability
8%Net margin8%
11%Operating margin12%
—Return on equity128%
13%Return on assets13%
Growth
10%Revenue growth (YoY)5%
-3.8%Avg. growth/yr (3Y)1.5%
-0.8%Avg. growth/yr (5Y)4.5%
Balance & size
—Debt / equity3.62×
$116BMarket cap$342B
weakGrowth qualityhealthy
Lowe's Companies leads: 7 to 4 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.
Lowe's Companiesof which business quality 64 · market factors 38Home Depotof which business quality 55 · market factors 46
ProfitabilityMargins and returns on capital today
78
83
Quality GrowthAre margins and returns improving?
28
30
CashflowEarnings quality: real cash, not paper profit
InvestmentDisciplined investing over empire-building
83
48
Low VolatilityCalm price path (market factor)
73
71
MomentumPrice trend over the last 3–12 months (market factor)
25
37
52W MomentumDistance to the 52-week high (market factor)
20
31
Net IssuanceBuybacks instead of dilution
97
84
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.
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.
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.
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.
Lowe's Companies
Bear $97.82Fair Value $186Bull $252
$218 = current price (white tick)
Home Depot
Bear $129Fair Value $237Bull $312
$342 = 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.
Lowe's Companies · Consumer Discretionary
Quality score66 · Top 25%
Fair value upside-15% · below median
Home Depot · Consumer Discretionary
Quality score57 · above median
Fair value upside-31% · below median
Bottom line
As of Aug 14, 2026, Fair Value Calculator sees Lowe's Companies as the less overvalued of the two: Lowe's Companies trades at $218 versus a fair value of $186 (-15%), while Home Depot trades at $342 versus $237 (-31%).
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.
