Microsoft Excel LibreOffice Calc

Lowe’s Cos. Inc. (NYSE:LOW)


Common Stock Valuation Ratios (Price Multiples)

Beginner level


Current Valuation Ratios

Lowe’s Cos. Inc., current price multiples

Microsoft Excel LibreOffice Calc
Lowe’s Cos. Inc. Amazon.com Inc. Costco Wholesale Corp. Dollar General Corp. Home Depot Inc. Target Corp. TJX Cos. Inc. Walmart Inc. General Retailers Consumer Services
Selected Financial Data
Current share price (P) $131.98
No. shares of common stock outstanding 755,002,775
Growth rate (g) 31.38%
 
Earnings per share (EPS) $5.67
Next year expected EPS $7.45
Operating profit per share $8.36
Sales per share $95.56
Book value per share (BVPS) $2.61
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 23.28 106.42 37.06 28.19 24.18 18.11 19.89 23.59 52.73 35.41
Price to next year expected earnings 17.72 92.13 34.38 23.86 10.15 15.89 14.37 21.88 46.18 31.19
Price-earnings-growth (PEG) 0.74 6.86 4.76 1.55 0.17 1.30 0.52 3.02 3.72 2.62
Price to operating profit (P/OP) 15.78 84.81 28.63 20.97 17.16 12.76 14.74 17.07 31.79 22.96
Price to sales (P/S) 1.38 4.40 0.91 1.74 2.47 0.77 1.56 0.68 1.80 1.73
Price to book value (P/BV) 50.53 19.87 8.90 7.20 5.02 10.94 4.70 12.99 7.31

Based on: 10-K (filing date: 2020-03-23).

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

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017 Jan 29, 2016 Jan 30, 2015
Price to earnings (P/E) 11.96 37.80 20.26 22.62 26.67 26.24
Price to operating profit (P/OP) 8.11 21.77 10.61 11.97 13.66 14.77
Price to sales (P/S) 0.71 1.23 1.02 1.08 1.15 1.26
Price to book value (P/BV) 25.96 24.01 11.89 10.87 8.87 7.10

Based on: 10-K (filing date: 2020-03-23), 10-K (filing date: 2019-04-02), 10-K (filing date: 2018-04-02), 10-K (filing date: 2017-04-04), 10-K (filing date: 2016-03-29), 10-K (filing date: 2015-03-31).

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.’s P/E ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.
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 2018 to 2019 but then decreased significantly from 2019 to 2020.
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 2018 to 2019 but then decreased significantly from 2019 to 2020.
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 2018 to 2019 and from 2019 to 2020.

Price to Earnings (P/E)

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

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Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017 Jan 29, 2016 Jan 30, 2015
No. shares of common stock outstanding1 754,948,648 795,922,717 825,766,281 857,332,918 897,438,629 951,704,640
Selected Financial Data (US$)
Net earnings (in millions) 4,281  2,314  3,447  3,093  2,546  2,698 
Earnings per share (EPS)2 5.67 2.91 4.17 3.61 2.84 2.83
Share price1, 3 67.80 109.91 84.59 81.59 75.67 74.39
Valuation Ratio
P/E ratio4 11.96 37.80 20.26 22.62 26.67 26.24
Benchmarks
P/E Ratio, Competitors5
Amazon.com Inc. 86.29 79.30 228.24 166.53 463.73
Costco Wholesale Corp. 35.76 30.51 25.70 27.99 27.57
Dollar General Corp. 21.04 19.18 15.73 15.28 20.63 21.58
Home Depot Inc. 17.38 18.87 23.51 22.37 23.32 23.15
Target Corp. 16.12 13.56 12.97 11.11 14.61
TJX Cos. Inc. 17.13 21.11 20.19 22.11 22.87 21.62
Walmart Inc. 21.69 41.79 26.62 16.02 14.72 15.91
P/E Ratio, Sector
General Retailers 42.89 36.58 36.19 28.89 31.37
P/E Ratio, Industry
Consumer Services 31.72 29.01 23.41 25.44 27.27

Based on: 10-K (filing date: 2020-03-23), 10-K (filing date: 2019-04-02), 10-K (filing date: 2018-04-02), 10-K (filing date: 2017-04-04), 10-K (filing date: 2016-03-29), 10-K (filing date: 2015-03-31).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
EPS = Net earnings ÷ No. shares of common stock outstanding
= 4,281,000,000 ÷ 754,948,648 = 5.67

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

4 2020 Calculation
P/E ratio = Share price ÷ EPS
= 67.80 ÷ 5.67 = 11.96

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.’s P/E ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017 Jan 29, 2016 Jan 30, 2015
No. shares of common stock outstanding1 754,948,648 795,922,717 825,766,281 857,332,918 897,438,629 951,704,640
Selected Financial Data (US$)
Operating income (in millions) 6,314  4,018  6,586  5,846  4,971  4,792 
Operating profit per share2 8.36 5.05 7.98 6.82 5.54 5.04
Share price1, 3 67.80 109.91 84.59 81.59 75.67 74.39
Valuation Ratio
P/OP ratio4 8.11 21.77 10.61 11.97 13.66 14.77
Benchmarks
P/OP Ratio, Competitors5
Amazon.com Inc. 68.77 64.31 168.59 94.32 123.77
Costco Wholesale Corp. 27.62 21.34 16.75 17.91 18.09
Dollar General Corp. 15.65 14.41 12.05 9.26 12.39 13.00
Home Depot Inc. 12.33 13.51 13.82 13.26 13.88 14.03
Target Corp. 11.35 9.69 8.83 6.12 8.88 11.20
TJX Cos. Inc. 12.69 15.31 13.54 13.20 14.06 13.28
Walmart Inc. 15.69 12.69 12.85 9.60 8.97 9.59
P/OP Ratio, Sector
General Retailers 25.86 22.45 21.72 17.26 16.19
P/OP Ratio, Industry
Consumer Services 20.56 18.48 17.84 15.62 15.33

Based on: 10-K (filing date: 2020-03-23), 10-K (filing date: 2019-04-02), 10-K (filing date: 2018-04-02), 10-K (filing date: 2017-04-04), 10-K (filing date: 2016-03-29), 10-K (filing date: 2015-03-31).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 6,314,000,000 ÷ 754,948,648 = 8.36

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

4 2020 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 67.80 ÷ 8.36 = 8.11

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.’s P/OP ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017 Jan 29, 2016 Jan 30, 2015
No. shares of common stock outstanding1 754,948,648 795,922,717 825,766,281 857,332,918 897,438,629 951,704,640
Selected Financial Data (US$)
Net sales (in millions) 72,148  71,309  68,619  65,017  59,074  56,223 
Sales per share2 95.57 89.59 83.10 75.84 65.83 59.08
Share price1, 3 67.80 109.91 84.59 81.59 75.67 74.39
Valuation Ratio
P/S ratio4 0.71 1.23 1.02 1.08 1.15 1.26
Benchmarks
P/S Ratio, Competitors5
Amazon.com Inc. 3.56 3.43 3.89 2.90 2.58
Costco Wholesale Corp. 0.88 0.69 0.55 0.57 0.58
Dollar General Corp. 1.30 1.19 1.03 0.87 1.18 1.22
Home Depot Inc. 1.77 1.94 2.01 1.88 1.85 1.77
Target Corp. 0.69 0.53 0.53 0.44 0.67 0.70
TJX Cos. Inc. 1.34 1.66 1.47 1.53 1.68 1.65
Walmart Inc. 0.62 0.55 0.53 0.45 0.45 0.54
P/S Ratio, Sector
General Retailers 1.46 1.32 1.24 1.03 0.98
P/S Ratio, Industry
Consumer Services 1.55 1.44 1.44 1.28 1.26

Based on: 10-K (filing date: 2020-03-23), 10-K (filing date: 2019-04-02), 10-K (filing date: 2018-04-02), 10-K (filing date: 2017-04-04), 10-K (filing date: 2016-03-29), 10-K (filing date: 2015-03-31).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 72,148,000,000 ÷ 754,948,648 = 95.57

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

4 2020 Calculation
P/S ratio = Share price ÷ Sales per share
= 67.80 ÷ 95.57 = 0.71

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.’s P/S ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017 Jan 29, 2016 Jan 30, 2015
No. shares of common stock outstanding1 754,948,648 795,922,717 825,766,281 857,332,918 897,438,629 951,704,640
Selected Financial Data (US$)
Shareholders’ equity (in millions) 1,972  3,644  5,873  6,434  7,654  9,968 
Book value per share (BVPS)2 2.61 4.58 7.11 7.50 8.53 10.47
Share price1, 3 67.80 109.91 84.59 81.59 75.67 74.39
Valuation Ratio
P/BV ratio4 25.96 24.01 11.89 10.87 8.87 7.10
Benchmarks
P/BV Ratio, Competitors5
Amazon.com Inc. 16.11 18.34 24.98 20.47 20.65
Costco Wholesale Corp. 8.58 7.47 6.39 5.44 6.17
Dollar General Corp. 5.38 4.75 3.95 3.54 4.47 4.03
Home Depot Inc. 139.52 41.08 25.88 15.76
Target Corp. 4.47 3.52 3.25 2.78 3.79 3.63
TJX Cos. Inc. 9.42 12.79 10.23 11.27 12.09 11.23
Walmart Inc. 4.32 3.84 3.37 2.81 2.69 3.20
P/BV Ratio, Sector
General Retailers 10.56 9.39 8.98 6.96 6.33
P/BV Ratio, Industry
Consumer Services 6.54 6.15 6.17 5.29 5.31

Based on: 10-K (filing date: 2020-03-23), 10-K (filing date: 2019-04-02), 10-K (filing date: 2018-04-02), 10-K (filing date: 2017-04-04), 10-K (filing date: 2016-03-29), 10-K (filing date: 2015-03-31).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 1,972,000,000 ÷ 754,948,648 = 2.61

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

4 2020 Calculation
P/BV ratio = Share price ÷ BVPS
= 67.80 ÷ 2.61 = 25.96

5 Click competitor name to see calculations.

Valuation 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 2018 to 2019 and from 2019 to 2020.