Latest Ratios: P/E Ratio 16.2x · EV/EBITDA 12.5x · ROE N/A. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $107.3B | $149.6B | $147.6B | $124.3B | $131.4B | $165.9B | $125.1B | $90.4B | $78.1B | $88.0B | $64.4B |
| Enterprise Value | $151.0B | $193.2B | $185.5B | $163.5B | $168.1B | $194.2B | $146.7B | $113.5B | $93.8B | $104.2B | $79.5B |
| P/E Ratio → | 16.15 | 22.54 | 21.26 | 16.12 | 20.48 | 19.73 | 21.53 | 21.17 | 33.74 | 25.61 | 21.06 |
| P/S Ratio | 1.24 | 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 | 14.03 | 19.55 | 19.17 | 20.13 | 19.44 | 20.09 | 13.52 | 32.16 | 15.56 | 22.32 | 14.47 |
| P/OCF | 10.88 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.24 | 2.22 | 1.89 | 1.73 | 2.02 | 1.64 | 1.57 | 1.32 | 1.52 | 1.22 |
| EV / EBITDA | 12.49 | 15.98 | 15.35 | 12.15 | 11.08 | 13.25 | 11.32 | 13.42 | 12.16 | 12.83 | 10.74 |
| EV / EBIT | 14.88 | 22.09 | 17.46 | 14.04 | 16.52 | 16.09 | 17.03 | 17.89 | 23.20 | 16.97 | 13.58 |
| EV / FCF | — | 25.26 | 24.09 | 26.48 | 24.86 | 23.51 | 15.84 | 40.35 | 18.69 | 26.44 | 17.87 |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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 | 26.5% | 26.5% | 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 | 3.69 | 3.69 | 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 | 3.61 | 3.61 | 3.14 | 2.91 | 2.42 | 1.93 | 1.66 | 2.72 | 2.04 | 2.00 | 2.05 |
| Debt / FCF | — | 5.71 | 4.93 | 6.35 | 5.42 | 3.42 | 2.32 | 8.19 | 3.13 | 4.13 | 3.40 |
| Interest Coverage | 5.73 | 5.73 | 7.23 | 7.91 | 8.94 | 14.05 | 9.88 | 8.83 | 6.23 | 9.42 | 8.94 |
Short-term solvency ratios and asset-utilisation metrics
| 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 | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | 2.5% | 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% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.2% | 4.4% | 4.7% | 6.2% | 4.9% | 5.1% | 4.6% | 4.7% | 3.0% | 3.9% | 4.7% |
| FCF Yield | 7.1% | 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 | 2.7% | 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 |
Includes 30+ ratios · 30 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying LOW stock.
Lowe's Companies, Inc.'s current P/E ratio is 16.2x. The historical average is 22.4x. This places it at the 10th percentile of its historical range.
Lowe's Companies, Inc.'s current EV/EBITDA is 12.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.4x.
Based on historical data, Lowe's Companies, Inc. is trading at a P/E of 16.2x. This is at the 10th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Lowe's Companies, Inc.'s current dividend yield is 2.46% with a payout ratio of 39.6%.
Lowe's Companies, Inc. has 33.5% gross margin and 11.8% operating margin. Operating margin between 10-20% is typical for established companies.
Lowe's Companies, Inc.'s Debt/EBITDA ratio is 3.7x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Housing market turnover sensitivity
Metrics are mathematically derived from official filings.
Valuation Reflects Persistent Competitive Discount
According to current market data, Lowe's trades at a forward P/E of 17.83, which represents a notable discount to its primary competitor, Home Depot, suggesting that investors remain skeptical of the company's ability to achieve parity in professional contractor penetration and long-term return on invested capital.
The current valuation multiple appears to bake in a lower growth trajectory compared to the broader home improvement sector. This discount warrants investigation, as it may reflect the market's assessment of Lowe's structural inability to replicate the high-margin, recurring revenue streams that define its rival's professional segment.
Capital Efficiency Constrained by Buybacks
Based on reported financial figures, Lowe's ROIC has fluctuated between 3.8% and 11.5% over the last ten quarters, a volatility that highlights the difficulty in compounding returns when aggressive share repurchases consistently outpace the company's ability to generate sustainable, high-quality organic growth in its core retail operations.
The inconsistency in ROIC suggests that management's capital allocation strategy may be prioritizing financial engineering over operational efficiency. Investors should monitor whether these returns can stabilize above the cost of capital, as the current trend indicates a potential decay in the company's long-term value creation capabilities.
Working Capital Volatility Impacts Liquidity
As reported in recent quarterly filings, Lowe's cash conversion cycle has remained elevated, averaging approximately 50 days, which indicates that the company's inventory-heavy business model requires significant working capital management to maintain liquidity during periods of fluctuating consumer demand and seasonal inventory build-ups in the retail cycle.
The reliance on inventory turnover to drive cash flow makes the company particularly vulnerable to shifts in housing market activity. The persistent nature of these working capital requirements suggests that operational efficiency gains are being offset by the structural demands of maintaining a massive, nationwide physical store footprint.
Leverage Profile Remains Structurally Strained
Based on the latest quarterly data, Lowe's maintains a strained balance sheet characterized by a persistent negative equity position of $9.3 billion, a trend that reflects years of aggressive capital returns that have consistently eroded the company's book value and limited its financial flexibility in a high-rate environment.
The company's debt-to-EBITDA ratio, which has reached as high as 19.66 in recent periods, suggests that interest coverage is becoming increasingly sensitive to operating income volatility. This leverage profile may limit management's ability to pivot strategy or invest in necessary logistics infrastructure should the housing market experience a prolonged downturn.
Misapplication of P/E Multiples
The P/E ratio is frequently misapplied to Lowe's business model, as it obscures the significant impact of aggressive share repurchases on earnings per share, which often masks the underlying stagnation in core operating margins and the company's struggle to improve its competitive standing against its primary industry rival.
Analysts should instead focus on EV/EBITDA or free cash flow yield to better understand the company's true operational performance and cash-generating capacity. Relying on P/E ignores the capital structure distortions caused by the company's persistent negative equity position and the resulting artificial inflation of per-share metrics.