Stock Analysis on Net

Lowe’s Cos. Inc. (NYSE:LOW)

$19.99

Capital Asset Pricing Model (CAPM)

Microsoft Excel

Paying users area

The data is hidden behind: . Unhide it.

  • Get 1-month access to Lowe’s Cos. Inc. for $19.99, or

  • get full access to the entire website for at least 3 months from $49.99.

This is a one-time payment. There is no automatic renewal.


We accept:

Visa Mastercard American Express Maestro Discover JCB PayPal Apple Pay Google Pay
Visa Secure Mastercard Identity Check American Express SafeKey

Rates of Return

Lowe’s Cos. Inc., monthly rates of return

Microsoft Excel
Lowe’s Cos. Inc. (LOW) Standard & Poor’s 500 (S&P 500)
t Date PriceLOW,t1 DividendLOW,t1 RLOW,t2 PriceS&P 500,t RS&P 500,t3
Feb 29, 2016
1. Mar 31, 2016
2. Apr 30, 2016
3. May 31, 2016
. . . . . . .
. . . . . . .
. . . . . . .
70. Dec 31, 2021
71. Jan 31, 2022
Average (R):
Standard deviation:
Lowe’s Cos. Inc. (LOW) Standard & Poor’s 500 (S&P 500)
t Date PriceLOW,t1 DividendLOW,t1 RLOW,t2 PriceS&P 500,t RS&P 500,t3
Feb 29, 2016
1. Mar 31, 2016
2. Apr 30, 2016
3. May 31, 2016
4. Jun 30, 2016
5. Jul 31, 2016
6. Aug 31, 2016
7. Sep 30, 2016
8. Oct 31, 2016
9. Nov 30, 2016
10. Dec 31, 2016
11. Jan 31, 2017
12. Feb 28, 2017
13. Mar 31, 2017
14. Apr 30, 2017
15. May 31, 2017
16. Jun 30, 2017
17. Jul 31, 2017
18. Aug 31, 2017
19. Sep 30, 2017
20. Oct 31, 2017
21. Nov 30, 2017
22. Dec 31, 2017
23. Jan 31, 2018
24. Feb 28, 2018
25. Mar 31, 2018
26. Apr 30, 2018
27. May 31, 2018
28. Jun 30, 2018
29. Jul 31, 2018
30. Aug 31, 2018
31. Sep 30, 2018
32. Oct 31, 2018
33. Nov 30, 2018
34. Dec 31, 2018
35. Jan 31, 2019
36. Feb 28, 2019
37. Mar 31, 2019
38. Apr 30, 2019
39. May 31, 2019
40. Jun 30, 2019
41. Jul 31, 2019
42. Aug 31, 2019
43. Sep 30, 2019
44. Oct 31, 2019
45. Nov 30, 2019
46. Dec 31, 2019
47. Jan 31, 2020
48. Feb 29, 2020
49. Mar 31, 2020
50. Apr 30, 2020
51. May 31, 2020
52. Jun 30, 2020
53. Jul 31, 2020
54. Aug 31, 2020
55. Sep 30, 2020
56. Oct 31, 2020
57. Nov 30, 2020
58. Dec 31, 2020
59. Jan 31, 2021
60. Feb 28, 2021
61. Mar 31, 2021
62. Apr 30, 2021
63. May 31, 2021
64. Jun 30, 2021
65. Jul 31, 2021
66. Aug 31, 2021
67. Sep 30, 2021
68. Oct 31, 2021
69. Nov 30, 2021
70. Dec 31, 2021
71. Jan 31, 2022
Average (R):
Standard deviation:

Show all

1 Data in US$ per share of common stock, adjusted for splits and stock dividends.

2 Rate of return on common stock of LOW during period t

3 Rate of return on S&P 500 (the market portfolio proxy) during period t


Variance and Covariance

Lowe’s Cos. Inc., calculation of variance and covariance of returns

Microsoft Excel
t Date RLOW,t RS&P 500,t (RLOW,tRLOW)2 (RS&P 500,tRS&P 500)2 (RLOW,tRLOW)×(RS&P 500,tRS&P 500)
1. Mar 31, 2016
2. Apr 30, 2016
3. May 31, 2016
. . . . . . .
. . . . . . .
. . . . . . .
70. Dec 31, 2021
71. Jan 31, 2022
Total (Σ):
t Date RLOW,t RS&P 500,t (RLOW,tRLOW)2 (RS&P 500,tRS&P 500)2 (RLOW,tRLOW)×(RS&P 500,tRS&P 500)
1. Mar 31, 2016
2. Apr 30, 2016
3. May 31, 2016
4. Jun 30, 2016
5. Jul 31, 2016
6. Aug 31, 2016
7. Sep 30, 2016
8. Oct 31, 2016
9. Nov 30, 2016
10. Dec 31, 2016
11. Jan 31, 2017
12. Feb 28, 2017
13. Mar 31, 2017
14. Apr 30, 2017
15. May 31, 2017
16. Jun 30, 2017
17. Jul 31, 2017
18. Aug 31, 2017
19. Sep 30, 2017
20. Oct 31, 2017
21. Nov 30, 2017
22. Dec 31, 2017
23. Jan 31, 2018
24. Feb 28, 2018
25. Mar 31, 2018
26. Apr 30, 2018
27. May 31, 2018
28. Jun 30, 2018
29. Jul 31, 2018
30. Aug 31, 2018
31. Sep 30, 2018
32. Oct 31, 2018
33. Nov 30, 2018
34. Dec 31, 2018
35. Jan 31, 2019
36. Feb 28, 2019
37. Mar 31, 2019
38. Apr 30, 2019
39. May 31, 2019
40. Jun 30, 2019
41. Jul 31, 2019
42. Aug 31, 2019
43. Sep 30, 2019
44. Oct 31, 2019
45. Nov 30, 2019
46. Dec 31, 2019
47. Jan 31, 2020
48. Feb 29, 2020
49. Mar 31, 2020
50. Apr 30, 2020
51. May 31, 2020
52. Jun 30, 2020
53. Jul 31, 2020
54. Aug 31, 2020
55. Sep 30, 2020
56. Oct 31, 2020
57. Nov 30, 2020
58. Dec 31, 2020
59. Jan 31, 2021
60. Feb 28, 2021
61. Mar 31, 2021
62. Apr 30, 2021
63. May 31, 2021
64. Jun 30, 2021
65. Jul 31, 2021
66. Aug 31, 2021
67. Sep 30, 2021
68. Oct 31, 2021
69. Nov 30, 2021
70. Dec 31, 2021
71. Jan 31, 2022
Total (Σ):

Show all

VarianceLOW = Σ(RLOW,tRLOW)2 ÷ (71 – 1)
= ÷ (71 – 1)
=

VarianceS&P 500 = Σ(RS&P 500,tRS&P 500)2 ÷ (71 – 1)
= ÷ (71 – 1)
=

CovarianceLOW, S&P 500 = Σ(RLOW,tRLOW)×(RS&P 500,tRS&P 500) ÷ (71 – 1)
= ÷ (71 – 1)
=


Systematic Risk (β) Estimation

Microsoft Excel
VarianceLOW
VarianceS&P 500
CovarianceLOW, S&P 500
Correlation coefficientLOW, S&P 5001
βLOW2
αLOW3

Calculations

1 Correlation coefficientLOW, S&P 500
= CovarianceLOW, S&P 500 ÷ (Standard deviationLOW × Standard deviationS&P 500)
= ÷ ( × )
=

2 βLOW
= CovarianceLOW, S&P 500 ÷ VarianceS&P 500
= ÷
=

3 αLOW
= AverageLOW – βLOW × AverageS&P 500
= ×
=


Expected Rate of Return

Microsoft Excel
Assumptions
Rate of return on LT Treasury Composite1 RF
Expected rate of return on market portfolio2 E(RM)
Systematic risk (β) of Lowe’s Cos. Inc. common stock βLOW
 
Expected rate of return on Lowe’s Cos. Inc. common stock3 E(RLOW)

1 Unweighted average of bid yields on all outstanding fixed-coupon U.S. Treasury bonds neither due or callable in less than 10 years (risk-free rate of return proxy).

2 See details »

3 E(RLOW) = RF + βLOW [E(RM) – RF]
= + []
=