Using the industry peer median P/E multiple (trailing + forward), Lowe's Companies, Inc. (LOW) has a fair value of $364.46 based on 6 comparable companies in the Home Improvement industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Lowe's Companies, Inc.LOW | 131,981 | 19.9x | 18.7x |
| The TJX Companies, Inc.TJX | 176,434 | 32.5x | 33.8x |
| Booking Holdings Inc.BKNG | 135,358 | 25.4x | 15.6x |
| Starbucks CorporationSBUX | 103,551 | 55.8x | 42.2x |
| O'Reilly Automotive, Inc.ORLY | 78,257 | 31.2x | 28.7x |
| NIKE, Inc.NKE | 76,965 | 24.1x | 33.6x |
| Royal Caribbean Cruises Ltd.RCL | 74,789 | 17.6x | 15.2x |
| Industry Median | 28.3x | 31.1x | |
| (*) Profit after tax | 6,654 | 7,063 | |
| Equity Value | 188,235 | 219,962 | |
| (/) Outstanding shares | 560 | 560 | |
| Fair Price | $336 | $393 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.