Lowe's Companies, Inc. (LOW) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-32.2%

$146.62

vs $216.20 price

Levered DCF

$114.68

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

3.18

Safe zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	22.5×	21.23×	16.08×	20.42×	19.65×	21.03×	21.17×	33.74×
P/B	-15.05×	-10.36×	-8.23×	-9.19×	-34.3×	85.04×	45.8×	21.4×
P/S	1.73×	1.76×	1.43×	1.35×	1.72×	1.36×	1.25×	1.09×
EV / EBITDA	15.48×	14.71×	12.01×	13.77×	13.83×	14.08×	14.62×	16.57×
Gross margin	33.5%	33.3%	33.4%	33.2%	33.3%	33.0%	31.8%	32.1%
Operating margin	11.8%	12.5%	13.4%	10.5%	12.6%	10.8%	8.8%	5.6%
Net margin	7.7%	8.3%	8.9%	6.6%	8.8%	6.5%	5.9%	3.2%
Current ratio	1.08×	1.09×	1.23×	1.1×	1.02×	1.19×	1.01×	0.98×
Debt / equity	-4.51×	-2.79×	-2.67×	-2.67×	-6.1×	18.24×	12.04×	4.45×
Interest coverage	6.65×	7.12×	7.85×	8.93×	14.08×	11.06×	8.79×	6.19×
Dividend yield	1.8%	1.7%	2.0%	1.8%	1.2%	1.4%	1.8%	1.9%
Payout ratio	39.6%	36.9%	32.8%	36.8%	23.5%	29.2%	37.8%	62.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-67.1%	-48.9%	-51.3%	-45.2%	-175.3%	406.1%	217.1%	63.5%
Return on invested capital	20.4%	27.5%	30.5%	26.4%	32.3%	23.3%	16.7%	12.5%
Return on assets	12.3%	15.6%	17.8%	14.2%	18.2%	12.1%	10.4%	6.7%
Free cash flow yield	5.1%	5.2%	5.0%	5.2%	5.0%	7.6%	3.1%	6.4%
Earnings yield	4.5%	4.7%	6.2%	4.9%	5.1%	4.8%	4.7%	3.0%
Enterprise value	$193B	$185.4B	$163.1B	$167.6B	$193.4B	$143.7B	$113.4B	$93.7B
Net debt / EBITDA	3.5×	3.01×	2.89×	3.01×	2.02×	2.11×	2.97×	2.78×
Cash conversion cycle (days)	53	53	52	45	36	32	41	32