Lowe's Companies, Inc. (LOW) Financial Ratios
30 years of historical data (1996–2025) · Consumer Cyclical · Home Improvement
EV/EBITDA
↓
11.32
↓-13% vs avg
5yr avg: 12.94
30Y Low5.9·High20.3
P/FCF
↓
17.08
↓-13% vs avg
5yr avg: 19.67
30Y Low13.5·High118.4
P/B Ratio
N/A
—
5yr avg: N/A
30Y Low1.5·High87.1
ROE
N/A
—
5yr avg: N/A
30Y Low10%·High342%
Debt/EBITDA
↓
0.59
↓-74% vs avg
5yr avg: 2.27
30Y Low0.6·High3.3
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
LOW Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Lowe's Companies, Inc. trades at 19.7x earnings, roughly in line with its 5-year average of 20.0x, sitting at the 30th percentile of its historical range. This is roughly in line with the Consumer Cyclical sector median P/E of 19.6x. On a free-cash-flow basis, the stock trades at 17.1x P/FCF, 13% below the 5-year average of 19.7x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $130.7B | $149.6B | $147.6B | $124.3B | $131.4B | $165.9B | $125.1B | $90.4B | $78.1B | $88.0B | $64.4B |
| Enterprise Value | $136.9B | $155.8B | $185.5B | $163.5B | $168.1B | $194.2B | $146.7B | $113.5B | $93.8B | $104.2B | $79.5B |
| P/E Ratio → | 19.69 | 22.54 | 21.26 | 16.12 | 20.48 | 19.73 | 21.53 | 21.17 | 33.74 | 25.61 | 21.06 |
| P/S Ratio | 1.51 | 1.73 | 1.76 | 1.44 | 1.35 | 1.72 | 1.40 | 1.25 | 1.09 | 1.28 | 0.99 |
| P/B Ratio | — | — | — | — | — | — | 87.08 | 45.86 | 21.43 | 14.98 | 10.01 |
| P/FCF | 17.08 | 19.55 | 19.17 | 20.13 | 19.44 | 20.09 | 13.52 | 32.16 | 15.56 | 22.32 | 14.47 |
| P/OCF | 13.25 | 15.16 | 15.33 | 15.27 | 15.30 | 16.41 | 11.33 | 21.05 | 12.61 | 17.37 | 11.46 |
P/E links to full P/E history page with 30-year chart
LOW EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Lowe's Companies, Inc.'s enterprise value stands at 11.3x EBITDA, 13% below its 5-year average of 12.9x. This is roughly in line with the Consumer Cyclical sector median of 11.4x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.81 | 2.22 | 1.89 | 1.73 | 2.02 | 1.64 | 1.57 | 1.32 | 1.52 | 1.22 |
| EV / EBITDA | 11.32 | 12.88 | 15.35 | 12.15 | 11.08 | 13.25 | 11.32 | 13.42 | 12.16 | 12.83 | 10.74 |
| EV / EBIT | 13.48 | 17.81 | 17.46 | 14.04 | 16.52 | 16.09 | 17.03 | 17.89 | 23.20 | 16.97 | 13.58 |
| EV / FCF | — | 20.36 | 24.09 | 26.48 | 24.86 | 23.51 | 15.84 | 40.35 | 18.69 | 26.44 | 17.87 |
LOW Profitability
Margins and return-on-capital ratios measuring operating efficiency
Lowe's Companies, Inc. earns an operating margin of 11.8%, above the Consumer Cyclical sector average of 2.9%. Operating margins have compressed from 13.4% to 11.8% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROIC of 76.2% represents excellent returns on invested capital versus a sector median of 5.8%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 33.5% | 33.5% | 31.2% | 31.4% | 31.4% | 31.6% | 31.4% | 30.1% | 30.1% | 30.6% | 32.3% |
| Operating Margin | 11.8% | 11.8% | 12.1% | 13.4% | 13.0% | 12.7% | 12.1% | 9.1% | 8.6% | 9.6% | 8.9% |
| Net Profit Margin | 7.7% | 7.7% | 8.3% | 8.9% | 6.6% | 8.8% | 6.5% | 5.9% | 3.2% | 5.0% | 4.8% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | — | — | 342.3% | 152.5% | 48.6% | 56.0% | 43.9% |
| ROA | 13.5% | 13.5% | 15.8% | 17.4% | 14.1% | 17.8% | 13.1% | 11.3% | 6.6% | 9.9% | 9.3% |
| ROIC | 76.2% | 76.2% | 31.7% | 37.2% | 41.4% | 39.6% | 34.0% | 22.2% | 22.1% | 22.6% | 21.0% |
| ROCE | 33.6% | 33.6% | 37.7% | 43.1% | 48.3% | 43.6% | 39.3% | 28.6% | 28.2% | 28.9% | 26.6% |
LOW Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Lowe's Companies, Inc. carries a Debt/EBITDA ratio of 0.6x, which is very conservative (86% below the sector average of 4.4x). Net debt stands at $6.2B ($7.2B total debt minus $982M cash).
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | — | — | 18.24 | 12.04 | 4.45 | 2.87 | 2.44 |
| Debt / EBITDA | 0.59 | 0.59 | 3.28 | 2.98 | 2.50 | 2.01 | 2.02 | 2.81 | 2.10 | 2.07 | 2.12 |
| Net Debt / Equity | — | — | — | — | — | — | 14.98 | 11.68 | 4.31 | 2.77 | 2.35 |
| Net Debt / EBITDA | 0.51 | 0.51 | 3.14 | 2.91 | 2.42 | 1.93 | 1.66 | 2.72 | 2.04 | 2.00 | 2.05 |
| Debt / FCF | — | 0.81 | 4.93 | 6.35 | 5.42 | 3.42 | 2.32 | 8.19 | 3.13 | 4.13 | 3.40 |
| Interest Coverage | — | — | 6.88 | 7.83 | 11.12 | 14.27 | 12.48 | 9.16 | 9.41 | 10.10 | 8.87 |
LOW Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.08x means Lowe's Companies, Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 0.19x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has declined from 1.23x to 1.08x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.08 | 1.08 | 1.09 | 1.23 | 1.10 | 1.02 | 1.19 | 1.01 | 0.98 | 1.06 | 1.00 |
| Quick Ratio | 0.19 | 0.19 | 0.16 | 0.14 | 0.15 | 0.12 | 0.33 | 0.14 | 0.11 | 0.11 | 0.13 |
| Cash Ratio | 0.07 | 0.07 | 0.11 | 0.08 | 0.09 | 0.07 | 0.28 | 0.06 | 0.05 | 0.06 | 0.05 |
| Asset Turnover | — | 1.59 | 1.88 | 1.99 | 2.14 | 2.08 | 1.86 | 1.76 | 2.06 | 1.94 | 1.89 |
| Inventory Turnover | 3.32 | 3.32 | 3.30 | 3.51 | 3.59 | 3.74 | 3.79 | 3.83 | 3.97 | 4.18 | 4.21 |
| Days Sales Outstanding | — | 4.61 | — | — | — | — | — | — | — | — | — |
LOW Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Lowe's Companies, Inc. returns 2.2% to shareholders annually — split between a 2.0% dividend yield and 0.2% buyback yield. The payout ratio of 39.6% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 5.1% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.0% | 1.8% | 1.7% | 2.0% | 1.8% | 1.2% | 1.4% | 1.8% | 1.9% | 1.5% | 1.7% |
| Payout Ratio | 39.6% | 39.6% | 36.9% | 32.8% | 36.8% | 23.5% | 29.2% | 37.8% | 62.9% | 37.4% | 36.3% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.1% | 4.4% | 4.7% | 6.2% | 4.9% | 5.1% | 4.6% | 4.7% | 3.0% | 3.9% | 4.7% |
| FCF Yield | 5.9% | 5.1% | 5.2% | 5.0% | 5.1% | 5.0% | 7.4% | 3.1% | 6.4% | 4.5% | 6.9% |
| Buyback Yield | 0.2% | 0.1% | 2.7% | 4.9% | 10.7% | 7.8% | 4.0% | 4.8% | 3.9% | 3.6% | 5.6% |
| Total Shareholder Yield | 2.2% | 1.9% | 4.5% | 7.0% | 12.6% | 9.0% | 5.3% | 6.6% | 5.8% | 5.1% | 7.3% |
| Shares Outstanding | — | $560M | $567M | $584M | $631M | $699M | $750M | $778M | $812M | $840M | $881M |
Peer Comparison
Compare LOW with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 LOWYou | $131B | 19.7 | 11.3 | 17.1 | 33.5% | 11.8% | — | 76.2% | 0.6 |
 HD | $321B | 22.7 | 14.0 | 25.4 | 33.3% | 12.7% | 145.5% | 32.1% | 0.8 |
 TSCO | $17B | 15.8 | 11.7 | 23.1 | 33.2% | 9.5% | 45.2% | 14.0% | 3.0 |
 FND | $6B | 26.6 | 17.3 | 86.1 | 41.1% | 5.9% | 9.1% | 4.4% | 7.1 |
 BLDR | $9B | 20.6 | 10.4 | 10.4 | 29.0% | 5.2% | 10.1% | 6.4% | 4.1 |
 MAS | $15B | 18.6 | 12.2 | 16.8 | 35.5% | 16.8% | 7363.6% | 35.4% | 2.4 |
 SHW | $80B | 31.5 | 21.4 | 30.1 | 48.9% | 16.1% | 59.4% | 16.5% | 3.3 |
 WSM | $23B | 21.1 | 14.2 | 21.8 | 46.2% | 18.1% | 51.5% | 44.3% | 0.9 |
 WHR | $4B | 9.7 | 10.1 | 38.3 | 15.2% | 4.7% | 11.2% | 5.8% | 7.4 |
 MHK | $6B | 17.6 | 7.1 | 10.4 | 23.9% | 4.7% | 4.6% | 3.9% | 2.4 |
 AWI | $7B | 23.5 | 17.3 | 28.8 | 40.6% | 26.6% | 37.2% | 24.9% | 1.2 |
| Consumer Cyclical Median | — | 19.6 | 11.4 | 15.0 | 36.9% | 2.9% | 5.6% | 5.8% | 4.4 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonLOW — Frequently Asked Questions
Quick answers to the most common questions about buying LOW stock.
What is Lowe's Companies, Inc.'s P/E ratio?
Lowe's Companies, Inc.'s current P/E ratio is 19.7x. The historical average is 22.4x. This places it at the 30th percentile of its historical range.
What is Lowe's Companies, Inc.'s EV/EBITDA?
Lowe's Companies, Inc.'s current EV/EBITDA is 11.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.3x.
Is LOW stock overvalued?
Based on historical data, Lowe's Companies, Inc. is trading at a P/E of 19.7x. This is at the 30th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Lowe's Companies, Inc.'s dividend yield?
Lowe's Companies, Inc.'s current dividend yield is 2.02% with a payout ratio of 39.6%.
What are Lowe's Companies, Inc.'s profit margins?
Lowe's Companies, Inc. has 33.5% gross margin and 11.8% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Lowe's Companies, Inc. have?
Lowe's Companies, Inc.'s Debt/EBITDA ratio is 0.6x, indicating low leverage. A ratio below 2x is generally considered financially healthy.