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Lowe's Companies Inc (LOW) Fair Value & Analysis

Consumer Cyclical · US · Market cap $116B · ISIN US5486611073

What is Lowe's Companies Inc really worth?

LS Lowe's Companies Inc logo Lowe's Companies Inc LOW · US
Price$199.84
Fair Value$186.32
Upside−6.8%
Quality66/100

A solid business, currently priced close to our fair value of $186.32.

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Strengths

Negative equity (buybacks among others) · generates free cash flow

Risks

!Weak Growth (revenue 5y −0.8 %/yr)
!Thin margins · 7.5% net margin
!Mixed vs. peers (8/14)
!Moderate moat 53/100
!Evidence only medium, so the estimate is less certain
!Weak on valuation: 24 out of 100

For context

·2.40% dividend yield
Evidence: Medium Range $97.82 – $252.38

Fair value as of: Aug 30, 2026

From 23 valuation models · updated 6 days ago

Share price −5.8% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • A fairly wide model range ($97.82 to $252.38) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

$286.02 $158.46 Fair Value $186.32 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.

How to read this chart

60‑month range $158.46 – $286.02 · fair‑value band $97.82 – $252.38 · the $199.84 price screens above the $186.32 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 30, 2026.

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Analysis

Lowe's Companies Inc (LOW) currently trades at $199.84, while our model-based Fair Value estimate is $186.32, implying the stock looks roughly 7.3% fairly valued today. The Quality Score stands at 66/100 (solid quality), in the Consumer Cyclical sector. Bull case: the Growth Earnings group reads highest at a median of $230.74 per share, and 6 of the 23 models we run sit above the $199.84 price. Bear case: the Dividend Discount group reads lowest at $71.61, and 17 of the 23 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Lowe's Companies Inc generated revenue of $88.4B at a net margin of 7.5%. Revenue grew 10.3% year over year. Net debt stands at $43.7B. The stock trades on a trailing P/E of 16.9. Fundamentals as of Aug 30, 2026

Our scenario range runs from $97.82 (bear case) to $252.38 (bull case); at $199.84, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 31% below its 52-week high, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −27% fair-value upside, at −7%, LOW screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 7 months have passed since. In that time the company retained roughly $4.18 per share, which is 2.2 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF $90.10 $177.11 $310.17 77
Growth DCF $92.72 $169.64 $280.05 76
EPV $71.79 $94.61 $114.57 74
All 23 models by family
DCF Models
FCF DCF $90.10 $177.11 $310.17 77
Owner Earnings $69.49 $144.95 $260.34 73
5Y Revenue Exit $69.31 $146.06 $243.37 70
5Y EBITDA Exit $103.97 $210.99 $335.58 73
5Y P/E Exit $102.59 $208.41 $319.31 69
10Y Revenue Exit $71.43 $143.35 $238.94 64
10Y EBITDA Exit $97.48 $188.47 $309.43 66
10Y P/E Exit $96.60 $186.67 $296.99 62
Earnings-Based
Graham-Dodd $80.70 $252.96 $336.66 64
Lynch FV $55.24 $78.92 $102.59 61
PEG = 1.0 $55.24 $78.92 $102.59 57
EPV $71.79 $94.61 $114.57 74
Dividend Discount
Gordon GGM $43.17 $89.75 $142.38 66
DDM Multi-Stage $43.17 $71.61 $94.20 66
Multiples
P/E Multiple $195.81 $261.08 $326.35 63
P/S Multiple $138.50 $184.67 $230.83 58
EV/EBIT $179.34 $260.82 $342.31 65
EV/EBITDA $133.07 $199.13 $265.20 66
EV/Revenue $64.16 $119.55 $174.95 52
Growth DCF
Growth DCF $92.72 $169.64 $280.05 76
Rev-Margin DCF $69.31 $146.61 $235.80 70
Economic Profit
ROIC Compounder $80.81 $116.78 $156.78 71
Growth Earnings
Growth-Adj P/E $161.51 $230.74 $299.96 67

Widest divergence: Growth Earnings ($230.74) versus Dividend Discount ($71.61). Highest evidence: FCF DCF (77).

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Key figures & financial health

P/E ratio 16.9
P/S ratio 1.30 P/E × margin
EPS (TTM) $11.84 price ÷ EPS = P/E 16.9
Dividend yield 2.4% payout 40.5%
Net margin 7.7% FY2026
Return on assets (EBIT) 24.5% avg 5y
More key figures
Profitability
Operating margin 11.1% TTM
Growth
Revenue (TTM) $88.4B TTM
Revenue growth (YoY) +10.3% 3y avg −3.8%
EPS growth (YoY) −0.7%
Balance sheet & cash flow
Free cash flow $7.7B FY2026
Net debt $43.7B FY2026 · ≈ 5.7 yrs of FCF

Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 66/100

Of which business quality 64 · Market factors (momentum, volatility) 34

Profitability 78
Margins and returns on capital today
Quality Growth 28
Are margins and returns improving?
Cashflow 57
Earnings quality: real cash, not paper profit
Fin. Strength 51
Balance sheet, leverage, solvency risk
Investment 83
Disciplined investing over empire-building
Low Volatility 73
Calm price path (market factor)
Momentum 24
Price trend over the last 3–12 months (market factor)
52W Momentum 5
Distance to the 52-week high (market factor)
Net Issuance 97
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States and Canada. It provides a line of products for construction, maintenance, repair, remodeling, and decorating.

Full company description

Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States and Canada. It provides a line of products for construction, maintenance, repair, remodeling, and decorating. The company also offers home improvement products, such as appliances, seasonal and outdoor living, lumber, lawn and garden, kitchens and bath, hardware, building materials, millwork, paint, rough plumbing, tools, electrical, flooring, and décor. In addition, it provides installation services through independent contractors in various product categories; and extended protection plans and repair services. Further, the company provides design, distribution, and installation services for interior surface finishes to home builders and property managers. It sells its national brand-name merchandise and private brand products to professional customers, individual homeowners, and renters. The company serves its products through Lowes.com website, mobile applications, retail home improvement stores and outlet stores, and its branches. Lowe's Companies, Inc. was founded in 1921 and is based in Mooresville, North Carolina.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Lowe's Companies Inc reported revenue of $86.3B in FY2026 versus $96.3B in FY2022, a compound −2.7%/yr. Reported net income was $6.7B in FY2026, compounding −5.8%/yr from FY2022.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
$86.3B
Latest YoY
+3.1%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−3.8%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−0.8%
Avg. revenue growth/yr (40Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+9.8%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+11.2% (8.8 + 2.4)
Revenue −2.7%/yr
FY22 $96.3B
FY23 $97.1B
FY24 $86.4B
FY25 $83.7B
FY26 $86.3B
Net income −5.8%/yr
FY22 $8.4B
FY23 $6.4B
FY24 $7.7B
FY25 $7.0B
FY26 $6.7B
Character of growth · EPS growth decomposed (2015-2026) +17.3 % p.a.
Revenue per share +9.8 %

of which total revenue +4.0 % · buybacks/dilution +5.6 %

EBIT margin +4.1 %
Tax rate +2.7 %
Residual (interest, one-offs) −0.1 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Lowe's Companies Inc Fair Value". https://www.fairvalue-calculator.com/stock/LOW

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Home Improvement Retail · 34 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 66 · Above median
Fair Value upside −7% · Below median
Return on assets 13% · Top 25%
Net margin (TTM) 8% · Top 25%
Operating margin (TTM) 11% · Top 25%
Revenue growth 10% · Top 25%
Dividend yield (TTM) 2.4% · Below median

Valuation Multiples vs Home Improvement Retail median · lower = cheaper

P/E (TTM) 16.9× · Cheaper than median
P/S (TTM) 1.32× · Pricier than 75% of peers
P/FCF 15.2× · Pricier than 75% of peers
EV/EBITDA 12.1× · Pricier than 75% of peers
PEG 1.36× · Cheaper than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE24 · sector 29
FUTURE52 · sector 11
PAST0 · sector 32
HEALTH100 · sector 95
DIVIDEND48 · sector 61

PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Home Improvement Retail stocks, each showing price versus our Fair Value estimate (as of Aug 30, 2026).

Stock Price Fair Value vs Fair Value
The Home Depot, Inc HD $328.61 $236.85 −28%
Wesfarmers Limited WES A$77.73 A$50.50 −35%
Floor & Decor Holdings FND $59.33 $27.30 −54%
Mr D.I.Y. Group 5296 1.51 MYR 1.47 MYR −3%
Home Product Center Public Company HMPROR 6.70 THB 6.31 THB −6%
Siam Global House Public Company GLOBAL 6.65 THB 5.96 THB −10%
Haverty Furniture Companies, Inc HVT $27.26 $20.42 −25%
Dohome Public Company DOHOME 3.78 THB 2.75 THB −27%
Test-Rite International Co 2908 21.80 TWD 4.97 TWD −77%
Bourrelier Group ALBOU €69.40 €36.15 −48%

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Frequently asked questions

Is Lowe's Companies Inc (LOW) overvalued or undervalued?
As of Aug 30, 2026, our model estimates a fair value of $186.32 versus a price of $199.84, about −7% upside (fairly valued).
What is the fair value of LOW?
Our model-based fair value for Lowe's Companies Inc is $186.32 (as of Aug 30, 2026), built from audited fundamentals. The current price: $199.84.
What is the quality score of LOW?
Lowe's Companies Inc has a Quality Score of 66/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Lowe's Companies Inc (LOW)?
Lowe's Companies Inc reported trailing-twelve-month revenue of about $88.4B (latest available figure, as of Aug 30, 2026).
What is the net profit margin of LOW?
The net profit margin of Lowe's Companies Inc is about 7.5%, meaning it keeps roughly 7.5% of revenue as net income. Based on the latest reported figures.
Does Lowe's Companies Inc pay a dividend?
Lowe's Companies Inc currently shows a dividend yield of about 2.40% relative to its recent price (as of Aug 30, 2026).
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