Lowes Companies Valuation

LOW Stock  USD 253.33  1.91  0.76%   
At this time, the firm appears to be overvalued. Lowes Companies secures a last-minute Real Value of $216.29 per share. The latest price of the firm is $253.33. Our model forecasts the value of Lowes Companies from analyzing the firm fundamentals such as Operating Margin of 0.09 %, return on asset of 0.17, and Shares Outstanding of 572.18 M as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend buying undervalued stocks and disposing overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
Price Book
321.8177
Enterprise Value
183.1 B
Enterprise Value Ebitda
13.5818
Price Sales
1.6655
Forward PE
20.79
Overvalued
Today
253.33
Please note that Lowes Companies' price fluctuation is very steady at this time. Calculation of the real value of Lowes Companies is based on 3 months time horizon. Increasing Lowes Companies' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Lowes Companies is useful when determining the fair value of the Lowes stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Lowes Companies. Since Lowes Companies is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Lowes Stock. However, Lowes Companies' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  253.33 Real  216.29 Target  242.59 Hype  254.03 Naive  258.05
The real value of Lowes Stock, also known as its intrinsic value, is the underlying worth of Lowes Companies Company, which is reflected in its stock price. It is based on Lowes Companies' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Lowes Companies' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Lowes Companies' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
214.97
Downside
216.29
Real Value
278.66
Upside
Estimating the potential upside or downside of Lowes Companies helps investors to forecast how Lowes stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Lowes Companies more accurately as focusing exclusively on Lowes Companies' fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
2.822.933.00
Details
Hype
Prediction
LowEstimatedHigh
252.71254.03255.35
Details
Potential
Annual Dividend
LowForecastedHigh
2.732.772.81
Details
36 Analysts
Consensus
LowTarget PriceHigh
220.76242.59269.27
Details

Lowes Companies Investments

(1.12 Billion)

Lowes Companies Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Lowes Companies's current stock value. Our valuation model uses many indicators to compare Lowes Companies value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Lowes Companies competition to find correlations between indicators driving Lowes Companies's intrinsic value. More Info.
Lowes Companies is rated fourth overall in annual yield category among related companies. It is rated third overall in price to earning category among related companies reporting about  1,555  of Price To Earning per Annual Yield. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Lowes Companies by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Lowes Companies' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Lowes Companies' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Lowes Companies' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Lowes Companies and how it compares across the competition.

About Lowes Companies Valuation

The stock valuation mechanism determines the current worth of Lowes Companies on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Lowes Companies. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Lowes Companies based exclusively on its fundamental and basic technical indicators. By analyzing Lowes Companies's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Lowes Companies's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Lowes Companies. We calculate exposure to Lowes Companies's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Lowes Companies's related companies.
Last ReportedProjected for 2024
Gross Profit27.1 B28.5 B
Pretax Profit Margin 0.12  0.08 
Operating Profit Margin 0.13  0.09 
Net Profit Margin 0.09  0.06 
Gross Profit Margin 0.31  0.32 

8 Steps to conduct Lowes Companies' Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Lowes Companies' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Lowes Companies' valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Lowes Companies' financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Lowes Companies' revenue streams: Identify Lowes Companies' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Lowes Companies' industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Lowes Companies' growth potential: Evaluate Lowes Companies' management, business model, and growth potential.
  • Determine Lowes Companies' financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Lowes Companies' estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Lowes Companies' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Lowes Companies' value is low or high relative to the company's performance and growth projections. Determining the market value of Lowes Companies can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Lowes Companies represents a small ownership stake in the entity. As a stockholder of Lowes, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Lowes Companies Dividends Analysis For Valuation

At this time, Lowes Companies' Dividend Payout Ratio is fairly stable compared to the past year. Dividend Paid And Capex Coverage Ratio is likely to climb to 32.06 in 2024, despite the fact that Dividends Paid is likely to grow to (2.4 B). . Price Earnings Ratio is likely to climb to 21.10 in 2024, despite the fact that Retained Earnings are likely to grow to (14.9 B).
Last ReportedProjected for 2024
Dividends Paid-2.5 B-2.4 B
Dividend Yield 0.02  0.02 
Dividend Payout Ratio 0.33  0.38 
Dividend Paid And Capex Coverage Ratio 14.36  32.06 
There are various types of dividends Lowes Companies can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Lowes shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Lowes Companies directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Lowes pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Lowes Companies by the value of the dividends paid out.

Lowes Companies Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Lowes Companies does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding584 M
Quarterly Earnings Growth Y O Y0.118
Forward Price Earnings20.79

Lowes Companies Current Valuation Indicators

Valuation refers to the process of determining the present value of Lowes Companies and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Lowes we look at many different elements of the entity such as Lowes's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Lowes Companies' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Lowes Companies' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Lowes Companies, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Lowes Companies' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Lowes Companies' worth.
When determining whether Lowes Companies is a strong investment it is important to analyze Lowes Companies' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Lowes Companies' future performance. For an informed investment choice regarding Lowes Stock, refer to the following important reports:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lowes Companies. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in persons.
For more information on how to buy Lowes Stock please use our How to Invest in Lowes Companies guide.
You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.

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Is Lowes Companies' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lowes Companies. If investors know Lowes will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lowes Companies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.118
Dividend Share
4.35
Earnings Share
13.2
Revenue Per Share
148.414
Quarterly Revenue Growth
(0.17)
The market value of Lowes Companies is measured differently than its book value, which is the value of Lowes that is recorded on the company's balance sheet. Investors also form their own opinion of Lowes Companies' value that differs from its market value or its book value, called intrinsic value, which is Lowes Companies' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lowes Companies' market value can be influenced by many factors that don't directly affect Lowes Companies' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Lowes Companies' value and its price as these two are different measures arrived at by different means. Investors typically determine if Lowes Companies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lowes Companies' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.