Stock analysis on net
Export to Excel Export to OpenOffice.org Print

Lowe's Cos. Inc. (LOW) | Common Stock Valuation Ratios (Price Multiples)

Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).


Current Valuation Ratios

Lowe's Cos. Inc., current price multiples

Export to Excel Export to OpenOffice.org
  Lowe's Cos. Inc. Consumer Services
Selected Financial Data
Current share price (P) $ 42.38  
No. shares of common stock outstanding 1,088,511,808  
Growth rate (g) 8.02%  
 
Earnings per share (EPS) $ 1.80  
Next year expected EPS $ 1.94  
Operating profit per share $ 3.27  
Sales per share $ 46.41  
Book value per share (BVPS) $ 12.73  
Ratios (Price Multiples)
Price to earnings (P/E) 23.55 19.23
Price to next year expected earnings 21.80 17.49
Price-earnings-growth (PEG) 2.94 1.94
Price to operating profit (P/OP) 12.96 11.36
Price to sales (P/S) 0.91 0.94
Price to book value (P/BV) 3.33 3.35

If company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.

Otherwise, if company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.

Top

Historical Valuation Ratios (Summary)

Lowe's Cos. Inc., historical price multiples

Export to Excel Export to OpenOffice.org
    Feb 1, 2013 Feb 3, 2012 Jan 28, 2011 Jan 29, 2010 Jan 30, 2009 Feb 1, 2008
Price to earnings (P/E) 21.13 20.46 17.66 19.70 12.26 12.74
Price to operating profit (P/OP) 11.63 11.48 9.97 11.29 7.11 7.61
Price to sales (P/S) 0.82 0.75 0.73 0.74 0.56 0.74
Price to book value (P/BV) 2.99 2.28 1.96 1.84 1.49 2.22
Ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Lowe's Cos. Inc.'s P/E ratio increased from 2011 to 2012 and from 2012 to 2013.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Lowe's Cos. Inc.'s P/OP ratio increased from 2011 to 2012 and from 2012 to 2013.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Lowe's Cos. Inc.'s P/S ratio increased from 2011 to 2012 and from 2012 to 2013.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return. Lowe's Cos. Inc.'s P/BV ratio increased from 2011 to 2012 and from 2012 to 2013.

Top

Price to Earnings (P/E)

Export to Excel Export to OpenOffice.org
    Feb 1, 2013 Feb 3, 2012 Jan 28, 2011 Jan 29, 2010 Jan 30, 2009 Feb 1, 2008
  No. shares of common stock outstanding1 1,088,511,808 1,198,910,882 1,318,320,422 1,443,389,268 1,474,239,704 1,461,815,744
  Selected Financial Data (USD $)
Net earnings (in millions) 1,959  1,839  2,010  1,783  2,195  2,809 
Earnings per share (EPS) 1.80 1.53 1.52 1.24 1.49 1.92
  Share price1, 2 38.02 31.38 26.93 24.34 18.25 24.49
  P/E Ratio, Comparison to Industry
Lowe's Cos. Inc. 21.13 20.46 17.66 19.70 12.26 12.74
  Industry, Consumer Services – 15.58 13.92 15.97 15.05 21.73
1 Data adjusted for splits and stock dividends.
2 Close price on the filing date of Lowe's Cos. Inc.'s Annual Report.
Ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Lowe's Cos. Inc.'s P/E ratio increased from 2011 to 2012 and from 2012 to 2013.

Top

Price to Operating Profit (P/OP)

Export to Excel Export to OpenOffice.org
    Feb 1, 2013 Feb 3, 2012 Jan 28, 2011 Jan 29, 2010 Jan 30, 2009 Feb 1, 2008
  No. shares of common stock outstanding1 1,088,511,808 1,198,910,882 1,318,320,422 1,443,389,268 1,474,239,704 1,461,815,744
  Selected Financial Data (USD $)
Pre-Interest and pre-tax earnings (in millions) 3,560  3,277  3,560  3,112  3,786  4,705 
Operating profit per share 3.27 2.73 2.70 2.16 2.57 3.22
  Share price1, 2 38.02 31.38 26.93 24.34 18.25 24.49
  P/OP Ratio, Comparison to Industry
Lowe's Cos. Inc. 11.63 11.48 9.97 11.29 7.11 7.61
  Industry, Consumer Services – 9.20 8.44 9.36 8.85 11.04
1 Data adjusted for splits and stock dividends.
2 Close price on the filing date of Lowe's Cos. Inc.'s Annual Report.
Ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Lowe's Cos. Inc.'s P/OP ratio increased from 2011 to 2012 and from 2012 to 2013.

Top

Price to Sales (P/S)

Export to Excel Export to OpenOffice.org
    Feb 1, 2013 Feb 3, 2012 Jan 28, 2011 Jan 29, 2010 Jan 30, 2009 Feb 1, 2008
  No. shares of common stock outstanding1 1,088,511,808 1,198,910,882 1,318,320,422 1,443,389,268 1,474,239,704 1,461,815,744
  Selected Financial Data (USD $)
Net sales (in millions) 50,521  50,208  48,815  47,220  48,230  48,283 
Sales per share 46.41 41.88 37.03 32.71 32.72 33.03
  Share price1, 2 38.02 31.38 26.93 24.34 18.25 24.49
  P/S Ratio, Comparison to Industry
Lowe's Cos. Inc. 0.82 0.75 0.73 0.74 0.56 0.74
  Industry, Consumer Services – 0.76 0.71 0.74 0.66 0.64
1 Data adjusted for splits and stock dividends.
2 Close price on the filing date of Lowe's Cos. Inc.'s Annual Report.
Ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Lowe's Cos. Inc.'s P/S ratio increased from 2011 to 2012 and from 2012 to 2013.

Top

Price to Book Value (P/BV)

Export to Excel Export to OpenOffice.org
    Feb 1, 2013 Feb 3, 2012 Jan 28, 2011 Jan 29, 2010 Jan 30, 2009 Feb 1, 2008
  No. shares of common stock outstanding1 1,088,511,808 1,198,910,882 1,318,320,422 1,443,389,268 1,474,239,704 1,461,815,744
  Selected Financial Data (USD $)
Shareholders' equity (in millions) 13,857  16,533  18,112  19,069  18,055  16,098 
Book value per share (BVPS) 12.73 13.79 13.74 13.21 12.25 11.01
  Share price1, 2 38.02 31.38 26.93 24.34 18.25 24.49
  P/BV Ratio, Comparison to Industry
Lowe's Cos. Inc. 2.99 2.28 1.96 1.84 1.49 2.22
  Industry, Consumer Services – 2.72 2.45 2.39 2.26 2.13
1 Data adjusted for splits and stock dividends.
2 Close price on the filing date of Lowe's Cos. Inc.'s Annual Report.
Ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return. Lowe's Cos. Inc.'s P/BV ratio increased from 2011 to 2012 and from 2012 to 2013.

Top