Consumer Discretionary · Home Improvement Retail · US stock · price as of 22 Oct 2026
Key indicators
Price
$204.37
52-week range
$178.45 – $293.06
Market cap
$114.4B
P/E (trailing)
17.2×
EV / EBITDA
11.8×
Free-cash-flow yield
6.1%
Dividend yield
3.0%
Revenue (last 12 months)
$90.4B
Revenue growth (3y a year)
−3.8%
Operating margin
11.4%
Return on invested capital
29.2%
Net debt / EBITDA
2.7×
Fair value
Fair value (average of valid models)$204.87 middle half of models $154 – $252
Versus priceFair+0% to fair value
P/E multiple
$208.56
P/S multiple
$320.55
EV/EBITDA multiple
$289.52
EV/EBIT multiple
$262.24
EV/revenue multiple
$285.58
10-year DCF, EBITDA exit
$199.77
5-year DCF, EBITDA exit
$212.14
10-year DCF, revenue exit
$200.68
5-year DCF, revenue exit
$213.74
10-year DCF, growth exit
$139.27
5-year DCF, growth exit
$132.28
Dividend discount, stable
$84.10
Dividend discount, multi-stage
$98.73
Earnings power value
$221.01
Model uncertainty
High
X-Ray Score
48/ 100 · High confidence · ahead of 38% of sector peers
Valuation54
Growth27
Profitability55
Financial health49
Dividends54
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
Home improvement is the business of Lowe's, which supplies products and services for maintenance, repair, remodelling and decorating. Its stores and website carry appliances, tools, paint, flooring, lumber, building materials, garden supplies and home decor, and offer installation services. Customers are mainly homeowners doing projects themselves or hiring others, along with professional contractors and tradespeople. The company runs a large store network across the United States and also serves customers online.
Revenue comes from merchandise and installation services purchased by households and contractors. Sales were $90.4 billion over the last twelve months, with growth of -3.8% a year over the last three years, meaning sales have declined. The operating margin is 11.4%, and the business earns a profit of 29% on the capital invested in it. Net debt is 2.7 times EBITDA. It pays a dividend with a yield of 3.0%.
StocksXray gives Lowes Companies Inc an X-Ray Score of 48 out of 100 (high confidence), ahead of 38% of the S&P 500 stocks in its sector. Its strongest lens is profitability (55) and its weakest is growth (27).
Our fair value (the average of the valid models) is $204.87 (range $154.40 to $251.94). At $204.37 the stock trades 0% below that value, so the label is "Fair" with high model uncertainty. Fair value is a range, not a price target.
XStocksXray
Lowes Companies Inc (LOW)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2022
FY2023
FY2024
FY2025
FY2026
Now
Price
$214.78
$201.43
$208.97
$252.13
$264.15
$204.37
Market cap
$150.1B
$127.1B
$122.0B
$143.2B
$147.9B
$114.4B
P/E
17.8×
19.8×
15.8×
20.6×
22.3×
17.2×
EV / revenue
1.8×
1.6×
1.8×
2.1×
2.2×
1.6×
EV / EBITDA
12.4×
13.2×
11.6×
14.2×
15.1×
11.8×
Price / free cash flow
18.2×
18.8×
19.8×
18.6×
19.3×
16.3×
Free-cash-flow yield
5.5%
5.3%
5.1%
5.4%
5.2%
6.1%
Price / book
–
–
–
–
–
–
Dividend yield
1.40%
1.96%
2.08%
1.80%
1.80%
2.98%
Fundamentals checklist ● 2 Good · ● 11 Average · ● 3 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−4.7%Average
Free-cash-flow yield6.1%Average
Risk models
Altman Z score0.9×Average
Piotroski F-Score6 of 9Average
Growth
EPS growth (3y)5.2%Average
Free-cash-flow growth (3y)4.2%Average
Revenue growth (3y)−3.8%Bad
Growth consistency50%Bad
Balance sheet
Current ratio1.1×Average
Net debt / EBITDA2.7×Average
Interest coverno interest costGood
Valuation
Fair value vs price1.0×Average
EBIT / EV yield6.9%Good
Profitability
Return on invested capital29.2%Average
Operating margin11.4%Bad
Gross profitability53.5%Average
Red flags
Negative equity — Book equity is negative
Negative equity — Book equity is negative
Negative equity — Book equity is negative
Negative equity — Book equity is negative
Negative equity — Book equity is negative
XStocksXray
Lowes Companies Inc (LOW)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY22
FY23
FY24
FY25
FY26
LTM
Revenue
96,250
97,059
86,377
83,674
86,286
90,432
Gross profit
32,056
32,257
28,844
27,877
28,885
29,917
Operating income
12,093
10,159
11,557
10,466
10,153
10,292
Net income
8,442
6,437
7,726
6,957
6,654
6,643
Diluted EPS ($)
12.04
10.17
13.20
12.23
11.85
11.86
Free cash flow
8,260
6,760
6,176
7,698
7,651
7,000
Gross margin
33.3%
33.2%
33.4%
33.3%
33.5%
33.1%
Operating margin
12.6%
10.5%
13.4%
12.5%
11.8%
11.4%
Net margin
8.8%
6.6%
8.9%
8.3%
7.7%
7.3%
Balance sheet
FY22
FY23
FY24
FY25
FY26
LTM
Total assets
44,640
43,708
41,795
43,102
54,144
55,881
Cash
1,133
1,348
921
1,761
982
3,172
Total debt
24,727
34,459
35,921
35,487
39,921
37,556
Equity
-4,816
-14,254
-15,050
-14,231
-9,917
-7,437
Dividend per share ($)
3.00
3.95
4.35
4.55
4.75
4.85
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value is the average of up to 15 valuation models, most of them anchored to the company's own multiples, so it stays near the price and should be read as a range, not a point. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.
