---
title: Lowe's (LOW) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/low
ticker: LOW
as_of: 2026-10-17
sector: Consumer Cyclical
industry: Home Improvement
---
# Lowe's (LOW)

Lowe's (LOW) closed at $197.31 on Oct 16, 2026, undervalued by 12% vs its model value of $223.29 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $197.31 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $223.29 |
| Price vs model | undervalued by 12% vs model |
| Range of that model | $122.34 – $616.19 |
| Market value | $110.7B |
| P/E (fiscal 2026) | 16.7 |
| Net margin (fiscal 2026) | 7.7% |
| Free cash flow (fiscal 2026) | $7.7B |
| Dividend yield (trailing twelve months) | 2.46% |
| Beta | 0.88 |
| Cost of capital (WACC) | 7.56% |
| Business classification | Dividend Payer (Revenue declining (~-0% recent), Moderate margins (8% net margin), Pays dividends, Highly cyclical earnings, High leverage (D/E 5.0x), Strong FCF yield (6.9%)) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Dividend growth streaks | #45 | 30 years | https://sweetvaluelab.com/lists/dividend-growth-streaks |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 2.46% |
| Dividends per share, last 12 months | $4.85 |
| Dividends / free cash flow (fiscal 2026) | 34.5% |
| Raised | 30 years in a row |
| Growth over 5 years | 13.3% a year |
| Latest payment | $1.25, ex-date Jul 22, 2026, paid Aug 5, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Jul 20, 2021 | $2.60 |
| To Jul 19, 2022 | $3.45 |
| To Jul 25, 2023 | $4.25 |
| To Jul 24, 2024 | $4.45 |
| To Jul 23, 2025 | $4.65 |
| Trailing twelve months (to Jul 22, 2026) | $4.85 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $223.29 | $122.34 | $616.19 |
| DCF · Perpetuity growth · 10y | cross check | $233.88 | $134.48 | $614.48 |
| DCF · EBITDA exit · 5y | cross check | $232.55 | $140.54 | $341.22 |
| DCF · EBITDA exit · 10y | cross check | $241.79 | $148.27 | $367.25 |
| P/E · peers | cross check | $316.70 | $256.22 | $364.72 |
| P/E · own history | cross check | $228.74 | $211.40 | $248.32 |
| PEG | sanity check | $115.91 | $115.91 | $115.91 |
| EV/EBITDA · peers | cross check | $281.41 | $170.40 | $393.49 |
| EV/Revenue · peers | cross check | $281.09 | $145.18 | $426.30 |
| Earnings power value | cross check | $74.26 | $50.46 | $109.85 |
| Dividend discount | cross check | $112.55 | $78.23 | $180.28 |

## Insider activity (SEC Form 4)

No open-market insider buys or sales filed in the past 90 days.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Sep 30, 2026 | Taylor Colleen | Director | Grant / award | 67.828 | $12,500 |
| Sep 30, 2026 | Simkins Lawrence | Director | Grant / award | 135.656 | $25,000 |
| Sep 30, 2026 | ROGERS BRIAN C | Director | Grant / award | 135.656 | $25,000 |
| Sep 30, 2026 | DREILING RICHARD W | Director | Grant / award | 298.443 | $55,000.1 |
| Sep 30, 2026 | DOUGLAS LAURIE Z | Director | Grant / award | 81.393 | $14,999.9 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Sep 2, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers | https://www.sec.gov/Archives/edgar/data/60667/000006066726000119/low-20260828.htm |
| Aug 28, 2026 | S-3ASR | Shelf registration (automatic) | https://www.sec.gov/Archives/edgar/data/60667/000162828026059420/lowes-sx3asr.htm |
| Aug 27, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/60667/000006066726000117/low-20260731.htm |
| Aug 19, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/60667/000006066726000113/low-20260819.htm |
| Jun 2, 2026 | 8-K | 5.07 Submission of Matters to a Shareholder Vote | https://www.sec.gov/Archives/edgar/data/60667/000006066726000091/low-20260529.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Thomas Gayner | 2026-06-30 | 751,980 | $165.8M |
| David Katz | 2026-09-30 | 86,232 | $15.9M |
| Mairs & Power | 2026-06-30 | 6,832 | $1.5M |

3 tracked managers in all.

## About

Lowe's Companies, Inc., together with its various subsidiary entities, operates as a prominent home improvement retailer serving both the United States and international markets. The company supplies a broad spectrum of items essential for construction, upkeep, renovations, and interior design projects. Its comprehensive product line encompasses major appliances, seasonal and outdoor living essentials, lawn and garden tools, timber, kitchen and bathroom fixtures, power tools, paints, custom millwork, general hardware, flooring options, plumbing components, building materials, decorative accents, lighting solutions, and electrical supplies. In addition to merchandise, Lowe's facilitates installation services through independent contractors across numerous product categories, offers extended protection plans, and provides repair services covering both warranty and post-warranty issues. The…

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Source: https://sweetvaluelab.com/stocks/low (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.