The Discounted Cash Flow (DCF) valuation of Lowe's Companies Inc (LOW) is 264.72 USD. With the latest stock price at 225.57 USD, the upside of Lowe's Companies Inc based on DCF is 17.4%.
Based on the latest price of 225.57 USD and our DCF valuation, Lowe's Companies Inc (LOW) is a buy. Buying Lowe's stocks now will result in a potential gain of 17.4%.
Range | Selected | |
WACC / Discount Rate | 5.9% - 8.1% | 7.0% |
Long-term Growth Rate | 1.0% - 3.0% | 2.0% |
Fair Price | 178.28 - 473.36 | 264.72 |
Upside | -21.0% - 109.9% | 17.4% |
(USD in millions) | Projections | |||||
01-2025 | 01-2026 | 01-2027 | 01-2028 | 01-2029 | 01-2030 | |
Revenue | 83,674 | 88,030 | 94,552 | 98,342 | 106,717 | 108,852 |
% Growth | 3% | 5% | 7% | 4% | 9% | 2% |
Cost of goods sold | (55,797) | (58,702) | (63,051) | (65,578) | (71,163) | (72,587) |
% of Revenue | 67% | 67% | 67% | 67% | 67% | 67% |
Selling, G&A expenses | (15,682) | (16,498) | (17,721) | (18,431) | (20,001) | (20,401) |
% of Revenue | 19% | 19% | 19% | 19% | 19% | 19% |
Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
% of Revenue | 0% | 0% | 0% | 0% | 0% | 0% |
Net interest & other expenses | (3,042) | (3,200) | (3,437) | (3,575) | (3,880) | (3,957) |
% of Revenue | 4% | 4% | 4% | 4% | 4% | 4% |
Tax expense | (2,196) | (2,369) | (2,545) | (2,647) | (2,872) | (2,929) |
Tax rate | 24% | 25% | 25% | 25% | 25% | 25% |
Net profit | 6,957 | 7,260 | 7,798 | 8,111 | 8,802 | 8,978 |
% Margin | 8% | 8% | 8% | 8% | 8% | 8% |