Lowe's Companies operates as a home improvement retailer, offering products for maintenance, repair, remodeling, and home decorating. The company was founded in 1946 and is based in Mooresville, North Carolina.
LOW Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Lowes Companies Inc. To summarize, we found that Lowes Companies Inc ranked in the 60th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 97.33%. The most interesting components of our discounted cash flow analysis for Lowes Companies Inc ended up being:
Lowes Companies Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 22.2% of tickers in our DCF set.
LOW's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 22.2% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Cyclical), Lowes Companies Inc has a reliance on debt greater than just 21.68% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
WRK, WSM, BTN, SON, and CVGI can be thought of as valuation peers to LOW, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
On CNBC's "Fast Money Halftime Report," traders spoke about Oppenheimer's downgrade of Home Depot Inc (NYSE: HD ) and Lowe's Companies Inc (NYSE: LOW ). Shannon Saccocia owns Home Depot, but she thinks this is a pretty good … Full story available on Benzinga.com
Image source Stocks in the home improvement group have been flying this year. The initial shock of the crisis sent the group reeling – like just about every other group – but since the bottom in March, investors have bid them up relentlessly. One such example is home improvement behemoth...
Source Home Depot (NYSE:HD) has kept on with its track record of impressing investors. Even in one of the fastest and largest recessions to hit of all time. With most big box stores reporting results that have been unimpressive the last several years, Home Depot has been the exception. Operating...
Lowe's Companies, Inc. (NYSE: LOW) today announced it will provide an additional $100 million in bonuses to assist associates with unforeseen expenses and hardships, increasing the company's total commitment to associates and communities during the pandemic to nearly $600 million.
The pandemic has made interior decorators of us all. Sherwin-Williams (ticker: SHW) said it earned $7.10 a share on revenue that fell 5.7% year over year to $4.6 billion. Analysts were looking for earnings per share of $5.70, on revenue of $4.55 billion.