Lowe’s Cos. Inc., FCFF calculation

US$ in millions

12 months ended:	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019
Net earnings	7,726)	6,437)	8,442)	5,835)	4,281)	2,314)
Net noncash charges	2,642)	5,034)	2,798)	3,319)	2,270)	3,112)
Changes in operating assets and liabilities	(2,228)	(2,882)	(1,127)	1,895)	(2,255)	767)
Net cash provided by operating activities	8,140)	8,589)	10,113)	11,049)	4,296)	6,193)
Cash paid for interest, net of amount capitalized, net of tax¹	1,111)	695)	630)	621)	511)	433)
Interest capitalized, net of tax²	3)	3)	2)	—)	1)	2)
Capital expenditures	(1,964)	(1,829)	(1,853)	(1,791)	(1,484)	(1,174)
Free cash flow to the firm (FCFF)	7,290)	7,458)	8,893)	9,879)	3,323)	5,454)

Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Lowe’s Cos. Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Lowe’s Cos. Inc. FCFF decreased from 2022 to 2023 and from 2023 to 2024.

Lowe’s Cos. Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019
Effective Income Tax Rate (EITR)
EITR¹	24.10%	28.80%	24.70%	24.60%	23.90%	31.80%
Interest Paid, Net of Tax
Cash paid for interest, net of amount capitalized, before tax	1,464)	976)	837)	824)	671)	635)
Less: Cash paid for interest, net of amount capitalized, tax²	353)	281)	207)	203)	160)	202)
Cash paid for interest, net of amount capitalized, net of tax	1,111)	695)	630)	621)	511)	433)
Interest Costs Capitalized, Net of Tax
Interest capitalized, before tax	4)	4)	3)	—)	1)	3)
Less: Interest capitalized, tax³	1)	1)	1)	—)	—)	1)
Interest capitalized, net of tax	3)	3)	2)	—)	1)	2)

Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).

¹ See details »

² 2024 Calculation
Cash paid for interest, net of amount capitalized, tax = Cash paid for interest, net of amount capitalized × EITR
= 1,464 × 24.10% = 353

³ 2024 Calculation
Interest capitalized, tax = Interest capitalized × EITR
= 4 × 24.10% = 1

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Lowe’s Cos. Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	165,643)
Free cash flow to the firm (FCFF)	7,290)
Valuation Ratio
EV/FCFF	22.72
Benchmarks
EV/FCFF, Competitors¹
Amazon.com Inc.	48.46
Home Depot Inc.	19.53
TJX Cos. Inc.	23.37
EV/FCFF, Sector
Consumer Discretionary Distribution & Retail	41.12
EV/FCFF, Industry
Consumer Discretionary	32.35

Based on: 10-K (reporting date: 2024-02-02).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Lowe’s Cos. Inc., historical EV/FCFF calculation, comparison to benchmarks

	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	180,028)	145,852)	173,894)	147,046)	69,616)	102,974)
Free cash flow to the firm (FCFF)²	7,290)	7,458)	8,893)	9,879)	3,323)	5,454)
Valuation Ratio
EV/FCFF³	24.69	19.56	19.56	14.88	20.95	18.88
Benchmarks
EV/FCFF, Competitors⁴
Amazon.com Inc.	—	45.92	—	—	78.83	74.39
Home Depot Inc.	21.94	27.17	25.12	20.22	19.11	21.30
TJX Cos. Inc.	24.44	31.93	33.03	18.30	19.08	21.16
EV/FCFF, Sector
Consumer Discretionary Distribution & Retail	—	38.32	111.04	130.00	51.35	42.44
EV/FCFF, Industry
Consumer Discretionary	—	32.34	55.69	66.32	52.28	30.93

Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).

¹ See details »

² See details »

³ 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 180,028 ÷ 7,290 = 24.69

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Lowe’s Cos. Inc. EV/FCFF ratio increased from 2022 to 2023 and from 2023 to 2024.

Lowe’s Cos. Inc. (NYSE:LOW)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical