Lowe’s Cos. Inc. (NYSE:LOW)

The data reveals several notable trends in the valuation ratios of the company over multiple quarterly periods. The price-to-earnings (P/E) ratio, available from early 2020 onward, shows fluctuations within a range roughly between 14.78 and 22.51. Initially, it surged from 11.96 to a peak around 22.5 during 2020, possibly reflecting market optimism or earnings variability during that period. From mid-2021 to early 2022, there was a decline to around 14.78, followed by a recovery phase with values oscillating mostly between 17 and 22 up to mid-2025. This pattern indicates a degree of earnings stability with periodic market reassessments of valuation.*

Similarly, the price-to-operating profit (P/OP) ratio follows a somewhat parallel trajectory. It starts at 8.11 in early 2020 and rises to about 15.21 in late 2020, indicating an increasing market premium relative to operating profitability. Subsequently, the ratio oscillates mainly between 10 and 15, suggesting variable earnings performance or shifting investor expectations regarding operating profit. A noticeable dip to 9.93 is recorded in early 2024, followed by a rebound to near 15 by late 2024, signaling transient valuation adjustments.*

The price-to-sales (P/S) ratio exhibits an increasing trend initially from 0.71 early in 2020 to values around 1.79 by late 2021. Afterwards, it fluctuates between approximately 1.17 and 1.84 through mid-2025. This general upward movement in P/S ratio over time may reflect improved sales growth relative to market valuations, or potentially changing market sentiment towards the company's revenue generation capabilities.*

Regarding the price-to-book value (P/BV) ratio, the data coverage is limited to early periods between 2019 and early 2021. This ratio shows significant volatility, with values ranging from about 22.7 up to a notably high 307.81 at one point in early 2021. Such extremes may be due to factors like rapid changes in book value, possible asset revaluations, or distortions in market price relative to accounting metrics during that period. The absence of data from mid-2021 onwards limits further analysis of this ratio.*

Overall, the company’s valuation ratios suggest a period of increased investor optimism and market valuation stress during 2020, potentially linked to external economic factors, followed by stabilization and moderate fluctuations in subsequent years. The interplay among P/E, P/OP, and P/S ratios indicates that while earnings and profitability metrics have seen variability, the market’s valuation relative to sales has gradually improved over time. The extreme volatility in P/BV early on calls for cautious interpretation, and the lack of recent data tempers conclusions in that area.*

The share price demonstrated significant volatility over the periods analyzed. Initially, there was a decline from $115.46 in November 2019 to $67.8 by January 2020, likely reflecting adverse market conditions at that time. Subsequently, a marked recovery occurred, with the share price rising sharply to $252.63 in October 2021, representing a strong upward trend spanning nearly two years. Following this peak, the share price experienced fluctuations, generally maintaining elevated levels between approximately $190 and $273. Notably, periods of decline were interspersed with recoveries, reflecting market sensitivity to varying economic or company-specific factors.

Earnings per share (EPS) data, available from May 2020 onward, showed a general upward trajectory in the earlier periods, increasing from $5.67 to a peak of $13.58 in October 2022. This growth indicates improved profitability or operational efficiency during that timeframe. However, after this peak, the EPS showed a gradual decline and some volatility, falling to a low of $10.47 in November 2023 before rebounding somewhat to the $12.21 to $12.43 range in mid-2024. The trend suggests that after a period of strong earnings growth, the company faced some challenges affecting profitability, although it managed to stabilize earnings afterward.

The price-to-earnings (P/E) ratio exhibited fluctuations that somewhat mirror movements in both share price and EPS. Initially, the P/E ratio was relatively low at 11.96 in May 2020 but increased to around 22.5 by October 2020, remaining mostly between 14.78 and 22.51 over the subsequent periods. This variation indicates changes in market valuation sentiment, possibly reflecting investors’ expectations about future earnings growth or risk perceptions. The P/E ratio did not show a consistent upward or downward trend but fluctuated within a range, suggesting adjustments in market confidence and valuation metrics in response to earnings performance and share price changes.

In summary, the company exhibited a recovery and growth phase in share price and earnings from mid-2020 through late 2022, followed by a period of earnings normalization and share price volatility. The P/E ratio's variability reflects dynamic investor sentiment and valuation adjustments consistent with these performance trends.

The share price demonstrates significant volatility over the reported periods. Initially, there is a decline from $115.46 in November 2019 to $67.80 in January 2020, followed by a strong upward trend peaking at $252.63 in October 2021. Post this peak, the share price experiences fluctuations, with intermittent rises and falls, finishing at $257.54 in August 2024. Notably, there are several corrections after peaks, such as declines after October 2021 and February 2023, indicating periods of market adjustment or profit taking.

Operating profit per share, available starting January 2020, reveals a generally increasing trajectory from $8.36 to $20.20 in February 2024. After reaching a high of $19.61 in October 2022, it undergoes a moderate decline to $16.98 by November 2023, then rebounds to $20.20 in early 2024, before settling around $18.39-$18.42 towards mid-2025. This pattern suggests steady profit growth with some short-term fluctuations likely due to operational factors or market conditions.

The price to operating profit ratio (P/OP) shows considerable variation, reflecting the combined impact of share price and operating profit per share movements. Initially, it is relatively low at 8.11 in May 2020, escalating to a peak of 15.21 in October 2020, followed by a general decline to around 10.29 in April 2022. Subsequently, the ratio oscillates between approximately 11 and 15, with a notable low of 9.93 in February 2024. These fluctuations imply periods where the share price either outpaces or lags behind operating profit growth, indicating changing investor sentiment or valuation adjustments over time.

Overall, the data indicates a company with increasing operational profitability and a share price exhibiting cyclical volatility but an upward long-term trend. The P/OP ratio variability suggests changing market perceptions regarding the earnings quality or growth expectations during the periods analyzed.

The analysis of the data reveals distinct trends in share price, sales per share, and the price-to-sales (P/S) ratio over the analyzed period. The share price exhibits notable volatility, reflecting fluctuations that could be linked to external market conditions and company performance indicators.

Share Price

The share price started at $93.84 in May 2019, followed by a rise to approximately $115 in November 2019, then experienced a sharp decline to a low of $67.8 by January 2020. Subsequently, it showed a significant recovery and sustained an upward trajectory, reaching peaks above $250 by late 2021. Post-2021, fluctuations persisted, with the price generally oscillating between the $190 to $273 range through mid-2025, indicating periods of both growth and correction within a relatively high valuation band compared to the initial values.

Sales Per Share

Sales per share data begins in early 2020 at approximately $95.57, displaying a steady increasing trend through 2023, reaching around $163.4 at the start of 2023. From that point, there is a mild decline to a level near $148 to $149 in subsequent quarters. This overall upward movement until early 2023 suggests consistent growth in sales performance per share before stabilizing or slightly retracting in the later periods.

Price-to-Sales (P/S) Ratio

The P/S ratio starts at 0.71 in early 2020 and undergoes significant increases with some fluctuation, peaking at 1.79 around late 2021, which suggests increased market valuation relative to sales. After this peak, the ratio decreases and fluctuates between 1.17 and 1.84 through 2025, showing alternating periods of valuation expansion and contraction relative to sales. The pattern implies fluctuations in investor sentiment and price valuation dynamics in relation to sales growth.

In summary, the share price demonstrates high volatility with an overall upward long-term trend despite short-term corrections. Sales per share reflects a generally steady growth trend until early 2023, followed by a mild decline or stabilization. The P/S ratio variation indicates changing market perceptions of valuation relative to sales, with periods of premium valuation followed by partial retracements. These patterns together highlight a dynamic interplay between market performance, sales growth, and valuation metrics over the periods observed.

Share Price Trend

The share price exhibits notable volatility over the observed periods. Initially, from May 2019 to November 2019, there is a steady increase from $93.84 to $115.46. A sharp decline occurs by January 2020, dropping to $67.80, likely reflecting external economic pressures. Following this dip, a marked recovery and growth trend is observed, peaking at $252.63 in October 2021. Subsequently, the share price experiences fluctuations, alternating between rises and declines but generally maintaining a higher level compared to the earlier periods. The price reaches a high of $273.19 in November 2024 before showing a slight decrease toward August 2025, settling at $257.54. Overall, the share price trend demonstrates recovery and long-term growth despite intermittent fluctuations.

Book Value per Share (BVPS) Development

The book value per share shows a considerably different pattern, mostly trending downward throughout the periods. Starting at $4.13 in May 2019, BVPS declines gradually, dipping into negative territory by October 2021, when it hits -$2.34 and continues to deteriorate further to -$25.63 by May 2024. This consistent decrease indicates a erosion of equity value on a per-share basis, which may suggest underlying asset write-downs, accumulated losses, or capital return strategies reducing the book value. The persistence of negative BVPS from late 2021 onward points to sustained financial strain at the equity level across these quarters.

Price-to-Book Value Ratio (P/BV) Dynamics

P/BV ratios are highly volatile and exhibit extreme values in certain quarters. Early data indicate a range from approximately 22.7 to 36 from May through November 2019, which spikes sharply to 56.37 in May 2020. The ratio then fluctuates down and up again, reaching an outsized peak of 307.81 in April 2021, reflecting an extremely high market valuation relative to book value during that quarter. This elevated P/BV is likely caused by the rapid decline in book value rather than extraordinary share price increases alone. After April 2021, P/BV data are missing for subsequent periods, making continuous trend analysis impossible; however, the early extreme levels suggest significant divergence between market perception and accounting book values during the peak periods.

Overall Analysis and Insights

The simultaneous decline in book value per share alongside a generally rising share price indicates a disconnect between market valuation and traditional accounting measures of equity. This divergence might be explained by investors placing higher value on future growth prospects, intangible assets not fully captured in book value, or other strategic factors. The volatility in share price and extreme P/BV ratios, especially around mid-2020 through 2021, suggest periods of market uncertainty or adjustment. The underlying deterioration in tangible book value could warrant further investigation into asset quality, liabilities, and company-specific events during this timeline. The data underscores the importance of considering multiple valuation metrics and qualitative factors in assessing the company’s financial health and market standing over this timeframe.