What is LOW's intrinsic value?

TickerWorth's valuation lenses put Lowe's Companies, Inc. (LOW) between $73.53 and $361.70 per share, versus a market price of $197.38. They disagree too widely for us to state a single fair value, so we publish the range.

Is LOW overvalued or undervalued?

At $197.38 the price sits inside a range too wide to call either way. We don't call LOW overvalued or undervalued from a range this wide. This is an educational estimate, not advice.

What discount rate is used for LOW?

A WACC of 8.1% and a terminal growth rate of 2.5%.

Is Lowe's Companies stock undervalued?

TickerWorth's fair-value range for Lowe's Companies, Inc. (LOW) is $73.53 – $361.70 against a market price of $197.38. Too wide to call. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.

Lowe's Companies (LOW) DCF valuation and fair value

Our fair-value range for Lowe's Companies, Inc. (LOW) is $73.53 – $361.70, built on a 8.1% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.

What growth is priced into Lowe's Companies stock?

Today's price implies revenue growth of 1.2% a year for 5 years; our model assumes 4.2% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $197.38. A model estimate, not investment advice.

Lowe's Companies (LOW) insider trading

The most recent insider filing (SEC Form 4) for Lowe's Companies, Inc. (LOW): Vance Quonta D, EVP, Pro & Home Services, shares withheld (tax) on 2026-04-01. The latest filings are listed on this page. A disclosure, not a signal to trade.

LOW · Intrinsic value

Is Lowe's Companies, Inc. (LOW) overvalued or undervalued?

Name: Lowe's Companies, Inc. (LOW) DCF intrinsic value
Creator: TickerWorth

As of Oct 19, 2026, TickerWorth's valuation lenses put Lowe's Companies, Inc. (LOW) at $73.53 – $361.70, too broad a range to say where the delayed market price of $197.38 sits in it, so we do not call it over- or undervalued. It is a model estimate, and every input behind it is sourced below.

Model by Miraaj Patel · generated from a hand-researched model · Updated Oct 19, 2026 · How these pages are made

Open full LOW analysis

What is LOW worth?

Fair-value range: $73.53 – $361.70
Market price: $197.38
Gap to fair value: —
Verdict: Too wide to call

Price as of 19 Oct 2026, 13:16 UTC · Prices are delayed.Our valuation lenses disagree too widely on this company for us to publish a single number, so we publish the range instead. We do not call it over- or undervalued from a spread this wide.

Fair-value range against the delayed market price: Too wide to call.

Reverse DCF: Today's price implies revenue growth of 1.2% a year for 5 years; our model assumes 4.2% a year on average over the same horizon.

What is LOW's TickerWorth Score?

C48/100

Middle of the pack — real strengths and real weaknesses

Compared with Consumer Cyclical companies in US

Its strongest point: trades below our estimate of what it's worth. Its weakest: balance sheet looks stretched.

Value · 60 of 100
Cheaper than 60% of Consumer Cyclical companies in US
Price vs worth · 67 of 100
Quality · 48 of 100
More profitable than 48% of Consumer Cyclical companies in US
Financial health · 31 of 100
Financially stronger than 31% of Consumer Cyclical companies in US
Growth · 39 of 100
Growing faster than 39% of Consumer Cyclical companies in US
Momentum · 24 of 100
Outperformed 24% of Consumer Cyclical companies in US over the past year

Confidence: Medium confidence · Scored 19 Oct 2026, 13:16 UTC

Get the Undervalued Company of the Week.

Where the numbers come from

Hand-researched model

What the modeller flagged

THE MODEL SITS ABOVE THE MARKET, AND IT IS A MODEST, FRAGILE GAP. Holding everything else, the price is matched by an operating margin that never recovers (flat ~10.9% from FY2027, below even the guided 11.1%), or zero revenue growth from FY2027, or terminal growth of ~1.7%, or a beta of ~1.02 (WACC ~8.8%). In other words, today's price is consistent with the housing market staying stuck: the 'no recovery' path (1.5-2% growth, margin flat at 11.1%) gives ~$172, close to it. The model is above the price because it assumes a slow, partial recovery from FY2028 - not a boom.
THE DISCOUNT RATE IS LOWER THAN HOME DEPOT'S, AND THAT IS A MECHANICAL RESULT OF LEVERAGE. Lowe's WACC is 8.14% vs HD's 9.13%: a lower published beta (0.846 vs 0.955) and a heavier debt weight (27% vs 16%) at a cheaper after-tax cost. The house method uses market weights and the published beta, so this is applied as-is - but the beta largely predates the FBM borrowing, and at HD's capital structure the value would be ~$193. A reader should treat the WACC gap between the two as partly an artefact.
TERMINAL VALUE IS ~78% OF ENTERPRISE VALUE - above the 75% line. The five explicit years carry under a quarter of the answer, so this is a valuation of Lowe's steady state. The implied exit multiple is ~11.2x FY2030 EBITDA.
NET DEBT IS READ AT THE SEASONAL HIGH POINT FOR CASH. The 2026-07-31 balance sheet follows the spring selling season, when payables peak: operating working capital was $1,888M vs $3,284M at the January year-end. Roughly $1.4B of that cash will flow back out by year-end, so this net debt flatters the value by ~$2.50/share. Not adjusted, to keep the house rule of using the latest balance sheet; the FY2026 10-K re-base (~March 2027) removes it.
YEAR 1 IS ALREADY HALF REPORTED (H1 ended 2026-07-31). The engine discounts all of FY2026 a full year while H1's cash is already in the balance sheet; the two roughly offset.
Year-1 FCF (~$7.2B modelled) is ~6% BELOW the last reported FY2025 FCF ($7,651M) and ~2% above trailing-twelve-month FCF to 2026-07-31 ($7,000M) - inside the 20% threshold. The modelled figure carries capex at the full $2.5B ceiling and charges the ~$397M of acquired amortization through NOPAT.
THE MARGIN PATH IS THE SOFTEST INPUT. 11.1% to 12.3% assumes operating leverage returns with a partial housing recovery. The first half of FY2026 ran 84bp below the prior year, the guide implies a lower H2 margin than last year, management flagged elevated transportation costs for H2, and the faster-growing acquired businesses earn far less than the stores. If the margin stays at 11.1%, the value falls to ~$185.
SBC of $247M (0.3% of sales) is expensed inside GAAP operating income and is not added back; dilution is captured by the weighted-diluted count, which is flat while buybacks are minimal.
No beta, tax or lease adjustment has been made to move the answer toward the market price; the inputs are published or guided figures except the Years 2-5 path, which is mine.

Why LOW gets a range, not one number

At a recent price of $197.38, Lowe's Companies, Inc. (LOW) sits inside a range too wide to call either way: our valuation lenses put the business somewhere between $73.53 and $361.70 per share. They disagree too widely for us to state a single fair value. We publish the range rather than a midpoint because a number that precise would claim more than the methods can support. This is an educational model, not a price target or a recommendation.

Read the full reasoning

The valuation discounts Lowe's Companies, Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 8.1%, with a long-run terminal growth rate of 2.5%. About 78% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.

Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 1.2% annual revenue growth for LOW. Our base case instead compounds to about 4.2% a year over the same forecast, so the market is pricing in slower growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.

Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, LOW's modeled DCF value ranges from about $131.09 to $410.73 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.

How to read this page: the DCF fair value is what Lowe's Companies, Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of LOW's intrinsic value. Figures update as new filings and prices come in.

Every input behind LOW's DCF

Input	Value	Source
Base-year revenueLowe's FY2025 10-K (accession 0000060667-26-000029, filed 2026-03-23), 52 weeks ended 2026-01-30: Net sales $86,286M, +3.1% on FY2024's $83,674M. Both years are 52 weeks, so no extra-week adjustment. THE GROWTH WAS BOUGHT, NOT EARNED: Retail Home Improvement (the stores) sold $84,078M, +0.5%, and the new 'Other' segment - Artisan Design Group (closed 2025-06-02, $1.3B) and Foundation Building Materials (closed 2025-10-09, $8.8B, consolidated on a one-month lag) - added $2,208M. Comparable sales +0.2% (ticket +3.0%, transactions -2.8%), after -2.7% (FY2024) and -4.7% (FY2023); sales were $97,059M in FY2022. The 10-K names 'housing turnover' among the key demand indicators it monitors. UNCHANGED as the base - the DCF grows it by forecast.revenue_growth. CROSS-CHECK: H1 FY2026 (six months to 2026-07-31) net sales $49,034M, +9.2% on $44,888M (8-K Ex-99.1, 2026-08-19), of which the Other segment was $3,695M vs $138M a year earlier (10-Q Note 13); comps +0.4%. Trailing twelve months to 2026-07-31: $90,432M.	$86,286,000,000	Lowe's FY2025 10-K (accession 0000060667-26-000029, filed 2026-03-23), 52 weeks ended 2026-01-30: Net sales $86,286M, +3.1% on FY2024's $83,674M. Both years are 52 weeks, so no extra-week adjustment. THE GROWTH WAS BOUGHT, NOT EARNED: Retail Home Improvement (the stores) sold $84,078M, +0.5%, and the new 'Other' segment - Artisan Design Group (closed 2025-06-02, $1.3B) and Foundation Building Materials (closed 2025-10-09, $8.8B, consolidated on a one-month lag) - added $2,208M. Comparable sales +0.2% (ticket +3.0%, transactions -2.8%), after -2.7% (FY2024) and -4.7% (FY2023); sales were $97,059M in FY2022. The 10-K names 'housing turnover' among the key demand indicators it monitors. UNCHANGED as the base - the DCF grows it by forecast.revenue_growth. CROSS-CHECK: H1 FY2026 (six months to 2026-07-31) net sales $49,034M, +9.2% on $44,888M (8-K Ex-99.1, 2026-08-19), of which the Other segment was $3,695M vs $138M a year earlier (10-Q Note 13); comps +0.4%. Trailing twelve months to 2026-07-31: $90,432M.
Base EBIT marginLowe's Q4/FY2025 earnings release, 8-K Ex-99.1 (accession 0000060667-26-000020, filed 2026-02-25) + FY2025 10-K (accession 0000060667-26-000029) Note 18: GAAP operating income $10,153M / net sales $86,286M = 11.77% (us-gaap:OperatingIncomeLoss, ties to the 10-K). GAAP, i.e. AFTER $140M of acquired-intangible amortization and ~$181M of FBM/ADG transaction costs ($321M of acquisition costs in total, 10-K non-GAAP section) and a $125M Q4 discretionary frontline bonus. Ex the transaction costs alone it is ~11.98%. THE TREND (same tag, 10-K filings): 12.56% FY2021, 13.38% FY2023 peak, 12.51% FY2024, 11.77% FY2025 (FY2022 is distorted by charges on the sale of the Canadian retail business and is not used). The stores alone earned 12.16% in FY2025 (Retail Home Improvement segment, 10-K Note 18) - down from 13.38% two years earlier on deleverage and payroll (employee compensation 13.26% of segment sales vs 12.50% in FY2023). The new Other segment LOST $70M (-3.2%) in its first partial year, after amortization. CROSS-CHECK H1 FY2026: GAAP 12.45% ($6,103M) vs 13.29% in H1 FY2025 - 84bp down, of which ~31bp is the extra intangible amortization booked in D&A (10-Q MD&A) and most of the rest is gross margin (-74bp, 'including dilution from FBM and ADG'). Operating leases: the $768M of FY2025 operating lease cost stays inside this EBIT, consistent with leaving operating lease liabilities out of net debt.	11.8%	Lowe's Q4/FY2025 earnings release, 8-K Ex-99.1 (accession 0000060667-26-000020, filed 2026-02-25) + FY2025 10-K (accession 0000060667-26-000029) Note 18: GAAP operating income $10,153M / net sales $86,286M = 11.77% (us-gaap:OperatingIncomeLoss, ties to the 10-K). GAAP, i.e. AFTER $140M of acquired-intangible amortization and ~$181M of FBM/ADG transaction costs ($321M of acquisition costs in total, 10-K non-GAAP section) and a $125M Q4 discretionary frontline bonus. Ex the transaction costs alone it is ~11.98%. THE TREND (same tag, 10-K filings): 12.56% FY2021, 13.38% FY2023 peak, 12.51% FY2024, 11.77% FY2025 (FY2022 is distorted by charges on the sale of the Canadian retail business and is not used). The stores alone earned 12.16% in FY2025 (Retail Home Improvement segment, 10-K Note 18) - down from 13.38% two years earlier on deleverage and payroll (employee compensation 13.26% of segment sales vs 12.50% in FY2023). The new Other segment LOST $70M (-3.2%) in its first partial year, after amortization. CROSS-CHECK H1 FY2026: GAAP 12.45% ($6,103M) vs 13.29% in H1 FY2025 - 84bp down, of which ~31bp is the extra intangible amortization booked in D&A (10-Q MD&A) and most of the rest is gross margin (-74bp, 'including dilution from FBM and ADG'). Operating leases: the $768M of FY2025 operating lease cost stays inside this EBIT, consistent with leaving operating lease liabilities out of net debt.
Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast	7% → 3% → 4% → 4% → 4%	ESTIMATEAssumption — TickerWorth's 5-year explicit forecast
Risk-free rateUS 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation. Shared by every model in this tracker. For Lowe's it bites twice: it is the discount rate, and it is the base of the 30-year mortgage rate that holds housing turnover - and with it big-ticket DIY spending - near multi-decade lows.	5.2%	US 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation. Shared by every model in this tracker. For Lowe's it bites twice: it is the discount rate, and it is the base of the 30-year mortgage rate that holds housing turnover - and with it big-ticket DIY spending - near multi-decade lows.
BetaYahoo Finance 5Y-monthly beta via yfinance, read 2026-10-03: Published 5Y-monthly beta 0.846, used AS IS - no normalization, the same choice as Home Depot (0.955). The window covers the 2021-22 housing boom and the 2022-23 rate shock, which is genuine housing exposure. One known bias, stated rather than adjusted: most of the window predates the ~$7B of debt raised for FBM in September 2025, and a more levered company should carry a higher equity beta - so if anything 0.846 is low, which flatters the value. Each 0.1 of beta is worth roughly $18/share (0.946 gives ~$192). The price is justified at a beta of ~1.02.	0.85	Yahoo Finance 5Y-monthly beta via yfinance, read 2026-10-03: Published 5Y-monthly beta 0.846, used AS IS - no normalization, the same choice as Home Depot (0.955). The window covers the 2021-22 housing boom and the 2022-23 rate shock, which is genuine housing exposure. One known bias, stated rather than adjusted: most of the window predates the ~$7B of debt raised for FBM in September 2025, and a more levered company should carry a higher equity beta - so if anything 0.846 is low, which flatters the value. Each 0.1 of beta is worth roughly $18/share (0.946 gives ~$192). The price is justified at a beta of ~1.02.
Terminal growthESTIMATEAssumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability with every other company in this tracker. FLAG: Lowe's own record is weaker than that - net sales were $72.1B in FY2019 and $86.3B in FY2025 (~3% a year, including a pandemic step-up and the FY2025 acquisitions), and the stores sold LESS in FY2025 ($84.1B) than in FY2021 ($96.3B). 3.0% adds ~$22/share; 2.0% takes ~$18 off. The price is justified at ~1.7%. Must remain < WACC of 8.14%.	2.5%	ESTIMATEAssumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability with every other company in this tracker. FLAG: Lowe's own record is weaker than that - net sales were $72.1B in FY2019 and $86.3B in FY2025 (~3% a year, including a pandemic step-up and the FY2025 acquisitions), and the stores sold LESS in FY2025 ($84.1B) than in FY2021 ($96.3B). 3.0% adds ~$22/share; 2.0% takes ~$18 off. The price is justified at ~1.7%. Must remain < WACC of 8.14%.
Diluted sharesLowe's Q2 2026 10-Q (accession 0000060667-26-000117) income statement + 8-K Ex-99.1 (2026-08-19): Q2 2026 (three months to 2026-07-31) weighted-average diluted shares 560M (basic 559M); H1 also 560M; FY2025 560M. Reported in whole millions only. Shares outstanding 561.05M at 2026-08-25. The count has stopped falling - it was 568M diluted in FY2024 - because buybacks were cut to $211M in FY2025 (from $4,053M) to fund FBM; $366M was repurchased in H1 FY2026 and $10.5B of authorization remains. Management told the 2026-09-15 conference buybacks resume once leverage reaches target (~mid-2027). SBC ($247M in FY2025) dilution is small.	560M	Lowe's Q2 2026 10-Q (accession 0000060667-26-000117) income statement + 8-K Ex-99.1 (2026-08-19): Q2 2026 (three months to 2026-07-31) weighted-average diluted shares 560M (basic 559M); H1 also 560M; FY2025 560M. Reported in whole millions only. Shares outstanding 561.05M at 2026-08-25. The count has stopped falling - it was 568M diluted in FY2024 - because buybacks were cut to $211M in FY2025 (from $4,053M) to fund FBM; $366M was repurchased in H1 FY2026 and $10.5B of authorization remains. Management told the 2026-09-15 conference buybacks resume once leverage reaches target (~mid-2027). SBC ($247M in FY2025) dilution is small.
Market priceDelayed quote · as of 2026-10-19 13:16 UTC	$197.38	Delayed quote · as of 2026-10-19 13:16 UTC

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What does Lowe's Companies, Inc. do?

What does it do?

Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States and Canada. It provides a line of products for construction, maintenance, repair, remodeling, and decorating. It operates in the Home Improvement Retail industry (Consumer Cyclical sector), headquartered in United States. The company employs roughly 300,000 people.

How does it make money?

The business turns $90.4B in annual revenue into profit. Out of every $100 of sales, about $13 is left as operating profit (operating margin of 13.4%), after a 33% gross margin on the products/services it sells. After all costs, taxes and interest, 7.3% of revenue becomes bottom-line net profit.

Is it financially healthy?

Financially it looks stretched: can just cover its short-term bills (1.1× current ratio), and is currently profitable.

Who at LOW filed insider trades?

Recent insider filings for Lowe's Companies, Inc.
Date	Insider	Relationship	What happened	Value	Filing
1 Apr 2026	Vance Quonta D	EVP, Pro & Home Services	Shares withheld (tax)	$77,165.46	Form 4 for Vance Quonta D (opens sec.gov in a new tab)
1 Apr 2026	Vance Quonta D	EVP, Pro & Home Services	Grant / award	—	Form 4 for Vance Quonta D (opens sec.gov in a new tab)
1 Apr 2026	Vagell Margrethe R	EVP, Supply Chain	Shares withheld (tax)	$50,499.72	Form 4 for Vagell Margrethe R (opens sec.gov in a new tab)
1 Apr 2026	Vagell Margrethe R	EVP, Supply Chain	Grant / award	—	Form 4 for Vagell Margrethe R (opens sec.gov in a new tab)
1 Apr 2026	Sink Brandon J	EVP, Chief Financial Officer	Shares withheld (tax)	$358,217.64	Form 4 for Sink Brandon J (opens sec.gov in a new tab)
1 Apr 2026	Sink Brandon J	EVP, Chief Financial Officer	Grant / award	—	Form 4 for Sink Brandon J (opens sec.gov in a new tab)

A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans

Common questions

What is LOW's intrinsic value?
TickerWorth's valuation lenses put Lowe's Companies, Inc. (LOW) between $73.53 and $361.70 per share, versus a market price of $197.38. They disagree too widely for us to state a single fair value, so we publish the range.
Is LOW overvalued or undervalued?
At $197.38 the price sits inside a range too wide to call either way. We don't call LOW overvalued or undervalued from a range this wide. This is an educational estimate, not advice.
What discount rate is used for LOW?
A WACC of 8.1% and a terminal growth rate of 2.5%.
Is Lowe's Companies stock undervalued?
TickerWorth's fair-value range for Lowe's Companies, Inc. (LOW) is $73.53 – $361.70 against a market price of $197.38. Too wide to call. We publish a range here, not one number, so we do not call it over- or undervalued. This is a model estimate, not investment advice.
Lowe's Companies (LOW) DCF valuation and fair value
Our fair-value range for Lowe's Companies, Inc. (LOW) is $73.53 – $361.70, built on a 8.1% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Lowe's Companies stock?
Today's price implies revenue growth of 1.2% a year for 5 years; our model assumes 4.2% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $197.38. A model estimate, not investment advice.
Lowe's Companies (LOW) insider trading
The most recent insider filing (SEC Form 4) for Lowe's Companies, Inc. (LOW): Vance Quonta D, EVP, Pro & Home Services, shares withheld (tax) on 2026-04-01. The latest filings are listed on this page. A disclosure, not a signal to trade.