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
Historical Valuation Ratios (Summary)
Price to Earnings (P/E)
Price to Operating Profit (P/OP)
Price to Sales (P/S)
Price to Book Value (P/BV)

Lowe’s Cos. Inc., current price multiples

	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.

Lowe’s Cos. Inc., historical price multiples

	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.

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

	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 price^1, 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.

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

	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 price^1, 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.

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

	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 price^1, 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.

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

	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 price^1, 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.

Lowe’s Cos. Inc. (NYSE:LOW)

Common Stock Valuation Ratios (Price Multiples)

Current Valuation Ratios

Historical Valuation Ratios (Summary)

Price to Earnings (P/E)

Price to Operating Profit (P/OP)

Price to Sales (P/S)

Price to Book Value (P/BV)