Stock Analysis on Net

Lowe’s Cos. Inc. (NYSE:LOW)

Common Stock Valuation Ratios (Price Multiples) 

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Current Valuation Ratios

Lowe’s Cos. Inc., current price multiples

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Lowe’s Cos. Inc. Amazon.com Inc. Bed Bath & Beyond Inc. Booking Holdings Inc. Dollar Tree Inc. Home Depot Inc. Target Corp. Ulta Beauty Inc. Retailing Consumer Discretionary
Selected Financial Data
Current share price (P) $190.46
No. shares of common stock outstanding 620,700,567
Growth rate (g) 109.03%
 
Earnings per share (EPS) $13.60
Next year expected EPS $28.43
Operating profit per share $19.48
Sales per share $155.07
Book value per share (BVPS) $-7.76
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 14.00 35.05 57.22 23.08 17.34 10.06 21.03 29.87 31.21
Price to next year expected earnings 6.70 28.85 43.52 19.58 5.22 8.66 15.26 23.54 26.66
Price-earnings-growth (PEG) 0.13 1.63 1.82 1.29 0.07 0.62 0.56 1.11 1.83
Price to operating profit (P/OP) 9.78 47.01 26.71 16.92 12.37 7.81 15.98 27.68 31.58
Price to sales (P/S) 1.23 2.49 0.06 6.08 1.16 1.89 0.67 2.40 2.11 2.55

Based on: 10-K (reporting date: 2022-01-28).

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


Historical Valuation Ratios (Summary)

Lowe’s Cos. Inc., historical price multiples

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Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017
Price to earnings (P/E) 17.84 22.36 11.96 37.80 20.26 22.62
Price to operating profit (P/OP) 12.45 13.52 8.11 21.77 10.61 11.97
Price to sales (P/S) 1.56 1.46 0.71 1.23 1.02 1.08
Price to book value (P/BV) 90.79 25.96 24.01 11.89 10.87

Based on: 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), 10-K (reporting date: 2018-02-02), 10-K (reporting date: 2017-02-03).

Valuation 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. P/E ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.
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. P/OP ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.
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. P/S ratio increased from 2020 to 2021 and from 2021 to 2022.

Price to Earnings (P/E)

Lowe’s Cos. Inc., historical P/E calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017
No. shares of common stock outstanding1 661,561,297 717,256,852 754,948,648 795,922,717 825,766,281 857,332,918
Selected Financial Data (US$)
Net earnings (in millions) 8,442  5,835  4,281  2,314  3,447  3,093 
Earnings per share (EPS)2 12.76 8.14 5.67 2.91 4.17 3.61
Share price1, 3 227.60 181.89 67.80 109.91 84.59 81.59
Valuation Ratio
P/E ratio4 17.84 22.36 11.96 37.80 20.26 22.62
Benchmarks
P/E Ratio, Competitors5
Amazon.com Inc. 48.08 78.20 86.30 79.30 228.25
Bed Bath & Beyond Inc. 5.78 8.34
Booking Holdings Inc. 86.68 1,696.44 14.16 21.46 39.30
Dollar Tree Inc. 25.61 18.97 21.75 13.26 20.18
Home Depot Inc. 19.94 24.51 17.38 18.87 23.51 22.37
Target Corp. 14.38 20.39 16.12 13.56 12.97 11.11
Ulta Beauty Inc. 20.97 96.85 13.91 31.01 22.31 42.89
P/E Ratio, Sector
Retailing 38.76 50.99 45.77 38.80 52.19
P/E Ratio, Industry
Consumer Discretionary 39.51 78.00 38.90 30.48 42.94

Based on: 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), 10-K (reporting date: 2018-02-02), 10-K (reporting date: 2017-02-03).

1 Data adjusted for splits and stock dividends.

2 2022 Calculation
EPS = Net earnings ÷ No. shares of common stock outstanding
= 8,442,000,000 ÷ 661,561,297 = 12.76

3 Closing price as at the filing date of Lowe’s Cos. Inc. Annual Report.

4 2022 Calculation
P/E ratio = Share price ÷ EPS
= 227.60 ÷ 12.76 = 17.84

5 Click competitor name to see calculations.

Valuation 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. P/E ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

Price to Operating Profit (P/OP)

Lowe’s Cos. Inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017
No. shares of common stock outstanding1 661,561,297 717,256,852 754,948,648 795,922,717 825,766,281 857,332,918
Selected Financial Data (US$)
Operating income (in millions) 12,093  9,647  6,314  4,018  6,586  5,846 
Operating profit per share2 18.28 13.45 8.36 5.05 7.98 6.82
Share price1, 3 227.60 181.89 67.80 109.91 84.59 81.59
Valuation Ratio
P/OP ratio4 12.45 13.52 8.11 21.77 10.61 11.97
Benchmarks
P/OP Ratio, Competitors5
Amazon.com Inc. 64.48 72.85 68.77 64.31 168.60
Bed Bath & Beyond Inc. 3.23 5.03
Booking Holdings Inc. 40.46 12.89 16.06 20.27
Dollar Tree Inc. 18.77 13.48 14.25 11.37 10.61
Home Depot Inc. 14.22 17.25 12.33 13.51 13.82 13.26
Target Corp. 11.17 13.62 11.35 9.69 8.83 6.12
Ulta Beauty Inc. 15.93 71.91 10.90 23.91 15.77 26.84
P/OP Ratio, Sector
Retailing 35.92 41.47 33.51 26.30 30.35
P/OP Ratio, Industry
Consumer Discretionary 39.97 60.30 29.87 23.66 22.94

Based on: 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), 10-K (reporting date: 2018-02-02), 10-K (reporting date: 2017-02-03).

1 Data adjusted for splits and stock dividends.

2 2022 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 12,093,000,000 ÷ 661,561,297 = 18.28

3 Closing price as at the filing date of Lowe’s Cos. Inc. Annual Report.

4 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 227.60 ÷ 18.28 = 12.45

5 Click competitor name to see calculations.

Valuation 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. P/OP ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

Price to Sales (P/S)

Lowe’s Cos. Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017
No. shares of common stock outstanding1 661,561,297 717,256,852 754,948,648 795,922,717 825,766,281 857,332,918
Selected Financial Data (US$)
Net sales (in millions) 96,250  89,597  72,148  71,309  68,619  65,017 
Sales per share2 145.49 124.92 95.57 89.59 83.10 75.84
Share price1, 3 227.60 181.89 67.80 109.91 84.59 81.59
Valuation Ratio
P/S ratio4 1.56 1.46 0.71 1.23 1.02 1.08
Benchmarks
P/S Ratio, Competitors5
Amazon.com Inc. 3.41 4.32 3.56 3.43 3.89
Bed Bath & Beyond Inc. 0.17 0.31 0.07 0.18 0.20 0.47
Booking Holdings Inc. 9.22 14.73 4.57 5.91 7.25
Dollar Tree Inc. 1.29 1.00 0.76 1.09 1.02 0.87
Home Depot Inc. 2.17 2.39 1.77 1.94 2.01 1.88
Target Corp. 0.95 0.96 0.69 0.53 0.53 0.44
Ulta Beauty Inc. 2.40 2.77 1.33 3.04 2.11 3.62
P/S Ratio, Sector
Retailing 2.73 3.02 2.46 2.33 2.41
P/S Ratio, Industry
Consumer Discretionary 3.22 3.37 2.13 1.89 1.92

Based on: 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), 10-K (reporting date: 2018-02-02), 10-K (reporting date: 2017-02-03).

1 Data adjusted for splits and stock dividends.

2 2022 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 96,250,000,000 ÷ 661,561,297 = 145.49

3 Closing price as at the filing date of Lowe’s Cos. Inc. Annual Report.

4 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= 227.60 ÷ 145.49 = 1.56

5 Click competitor name to see calculations.

Valuation 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. P/S ratio increased from 2020 to 2021 and from 2021 to 2022.

Price to Book Value (P/BV)

Lowe’s Cos. Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017
No. shares of common stock outstanding1 661,561,297 717,256,852 754,948,648 795,922,717 825,766,281 857,332,918
Selected Financial Data (US$)
Shareholders’ equity (deficit) (in millions) (4,816) 1,437  1,972  3,644  5,873  6,434 
Book value per share (BVPS)2 -7.28 2.00 2.61 4.58 7.11 7.50
Share price1, 3 227.60 181.89 67.80 109.91 84.59 81.59
Valuation Ratio
P/BV ratio4 90.79 25.96 24.01 11.89 10.87
Benchmarks
P/BV Ratio, Competitors5
Amazon.com Inc. 11.60 17.86 16.11 18.34 24.98
Bed Bath & Beyond Inc. 7.49 2.26 0.47 0.86 0.85 2.10
Booking Holdings Inc. 16.35 20.46 11.61 9.77 8.17
Dollar Tree Inc. 4.41 3.49 2.88 4.40 3.16 3.36
Home Depot Inc. 95.58 139.52 41.08
Target Corp. 7.79 6.17 4.47 3.52 3.25 2.78
Ulta Beauty Inc. 13.46 8.52 5.16 11.22 6.98 11.34
P/BV Ratio, Sector
Retailing 13.12 17.63 15.96 14.82 15.69
P/BV Ratio, Industry
Consumer Discretionary 12.09 15.19 10.94 9.19 8.87

Based on: 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), 10-K (reporting date: 2018-02-02), 10-K (reporting date: 2017-02-03).

1 Data adjusted for splits and stock dividends.

2 2022 Calculation
BVPS = Shareholders’ equity (deficit) ÷ No. shares of common stock outstanding
= -4,816,000,000 ÷ 661,561,297 = -7.28

3 Closing price as at the filing date of Lowe’s Cos. Inc. Annual Report.

4 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= 227.60 ÷ -7.28 =

5 Click competitor name to see calculations.