LOW
Lowe's Companies Inc
Price:  
225.57 
USD
Volume:  
2,338,993
United States | Specialty Retail

Lowe's DCF Valuation - Growth Exit 5Y

17.4 %
Upside

What is the DCF valuation of Lowe's?

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%.

Is Lowe's a buy or a sell?

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 Rate5.9% - 8.1%7.0%
Long-term Growth Rate 1.0% - 3.0%2.0%
Fair Price178.28 - 473.36264.72
Upside-21.0% - 109.9%17.4%
225.57 USD
Stock Price
264.72 USD
Fair Price
REVENUE & EXPENSES
CAPEX
D&A
WORKING CAPITAL
TERMINAL VALUE

Lowe's DCF Valuation: Revenue & Expenses Forecast

(USD in millions)Projections
01-202501-202601-202701-202801-202901-2030
Revenue83,67488,03094,55298,342106,717108,852
% Growth
3%5%7%4%9%2%
Cost of goods sold(55,797)(58,702)(63,051)(65,578)(71,163)(72,587)
% of Revenue67%67%67%67%67%67%
Selling, G&A expenses(15,682)(16,498)(17,721)(18,431)(20,001)(20,401)
% of Revenue19%19%19%19%19%19%
Research & Development000000
% of Revenue0%0%0%0%0%0%
Net interest & other expenses(3,042)(3,200)(3,437)(3,575)(3,880)(3,957)
% of Revenue4%4%4%4%4%4%
Tax expense(2,196)(2,369)(2,545)(2,647)(2,872)(2,929)
Tax rate24%25%25%25%25%25%
Net profit6,9577,2607,7988,1118,8028,978
% Margin8%8%8%8%8%8%