Lowe's Companies Inc. (LOW) Valuation
Historical valuation analysis based on 1281 data points (2021-09-10 to 2026-10-16)
Lowe's is the second-largest home improvement retailer globally, with 1,761 stores in the US, after the 2023 divestiture of its Canadian locations. The firm's stores offer products and services for...
Lowe's Companies Inc. (LOW) currently trades at a P/E ratio of 16.72 (historical range: 13.44–23.81, median: 19.23), placing it at the 17th percentile — cheap relative to its history, P/S ratio of 1.28 (range: 1.11–1.94, 9th percentile — cheap relative to its history), EV/EBITDA of 14.77 (range: 11.42–19.46, 29th percentile).
Lowe's Companies Inc. trades well below its historical valuation range across most metrics.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 16.72 | 19.23 | 17th | cheap relative to its history |
| P/S Ratio | 1.28 | 1.50 | 9th | cheap relative to its history |
| EV/EBITDA | 14.77 | 15.58 | 29th | below its historical average |
| FCF Yield | 6.91% | 5.30% | 100th | cheap relative to its history |
Lowe's Companies Inc. (LOW) Valuation & P/E History
Lowe's Companies Inc. (LOW) is a US-listed stock operating in the Consumer Cyclical sector, specifically the Retail-Lumber & Other Building Materials Dealers industry currently trading at $197.50 with a market capitalization of $110.8 billion. This page provides historical valuation analysis for LOW based on 1281 data points covering 2021-09-10 to 2026-10-16. The P/E ratio of 16.72 is below the historical median of 19.23, placing LOW at the 17th percentile of its valuation range. The P/S ratio of 1.28 compares to a median of 1.50.
LOW Valuation Metrics & Historical Range
The valuation table above shows Lowe's Companies Inc.'s current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether LOW is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests LOW is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Lowe's Companies Inc..
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is LOW Overvalued or Undervalued?
Lowe's Companies Inc. trades well below its historical valuation range across most metrics. The overall valuation percentile of 18 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive LOW is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full LOW analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.LOW trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.