NYSE: LOW · Home Improvement
Lowe's Companies (LOW) fair value: undervalued or overvalued?
As of 26 Sep 2026, Faircurve's model values Lowe's Companies (LOW) at $205.25 a share. The stock last closed at $180.80, which puts the model's fair value 13.5% above the price. On the model's bands that reads as Fairly valued.
Revalued . Price is the close of 2 Oct 2026. Lowe's Companies, Inc.
Faircurve Insights · 26 Sep 2026
Lowe's Companies, Inc. operates as a prominent home improvement retailer serving both the United States and international markets.
On 26 Sep 2026, Faircurve's model found a fair value of $205.25 a share, the midpoint of 2,000 simulations. The previous run on 19 Sep 2026 gave $209.10, moving the fair value by -1.8%. The calibrated range over 63 trading days was $166.93 to $207.88, built around the price from the volatility the stock's own options imply, calibrated weekly against realised prices (3,330 past valuations, refreshed 26 Sep 2026). Ranges built this way held the price 60% of the time at this horizon, and the model's evidence grade was Medium.
The business scored an overall quality score of 52 out of 100 against comparable companies. Its quality factors included Profitability 55, Earnings quality 76, Growth quality 40, Capital discipline 49, Balance sheet 20, and Stability 54. The model compares it with The Home Depot, Inc., Floor & Decor Holdings, Inc., Starbucks Corporation, Airbnb, Inc., MercadoLibre, Inc., and Booking Holdings Inc. Moves around the last 8 earnings reports, measured from the close before each report to the close after it, ranged from +4.0% to -5.1%, with a median size, ignoring direction, of 2.2%.
Written from the figures on this page for the 26 Sep 2026 valuation and checked by rule before publishing: every number is one printed here, no forecast, no instruction. The price, the gap and the verdict are the page's own and change daily. Not a recommendation.
What price range does the model give LOW?
The calibrated range for LOW over 63 trading days is $166.93 to $207.88. It sits around the last close, and its width comes from the volatility that LOW's own options imply (31% a year), calibrated weekly against realised prices (n = 3,330 past valuations, refreshed 26 Sep 2026). Ranges built this way held the price 60% of the time at this horizon. The fair value is the model's opinion and rides beside the range. It is not the centre of it.
The model's own simulated range, from the 20th to the 80th percentile of its runs, is $150.24 to $268.55. In 59% of the simulations the fair value came out above the price the model ran on.
How does LOW score on business quality?
Lowe's Companies's overall quality score is 52 out of 100. Each factor below is a score against comparable companies, not a percentile of the metric beside it.
| Factor | Score (0 to 100) | Headline measure | Peer median |
|---|---|---|---|
| ProfitabilityReturn on invested capital against the peer group, with a bonus for an improving trend. | 55 | 24.8%ROIC | 25.7% |
| Earnings qualityHow much of reported profit is cash: free cash flow to net income, and the accrual ratio (the share of earnings that is not cash). | 76 | 1.05xFCF / net income | 0.93x |
| Growth qualityTrailing revenue growth, forward growth from consensus, and the direction of analyst estimate revisions. | 40 | 3.1%Revenue growth, trailing | 7.1% |
| Capital disciplineReinvestment efficiency (capital spending per unit of revenue) and net buybacks. | 49 | 0.4%Net buybacks / market value | 1.5% |
| Balance sheetNet debt to EBITDA and interest coverage. | 20 | 3.19xNet debt / EBITDA | 0.96x |
| StabilityDownside volatility of the EBITDA margin over the last five years. | 54 | 0.9 ptsEBITDA margin downside volatility, 5y | 0.8 pts |
How does LOW compare with similar companies?
The companies in home improvement closest to Lowe's Companies in market value, each on the same model and the same date.
| Company | Last close | Model fair value | Gap | Model verdict |
|---|---|---|---|---|
| HD The Home Depot, Inc. | $282.85 | $264.63 | -6.4% | Fairly valued |
| FND Floor & Decor Holdings, Inc. | $45.49 | $43.64 | -4.1% | Fairly valued |
| SBUX Starbucks Corporation | $94.71 | $95.28 | +0.6% | Fairly valued |
| PDD PDD Holdings Inc. | $75.38 | $87.30 | +15.8% | Low evidence grade |
| ABNB Airbnb, Inc. | $162.43 | $151.05 | -7.0% | Fairly valued |
| MAR Marriott International, Inc. | $358.96 | $318.73 | -11.2% | Low evidence grade |
| MELI MercadoLibre, Inc. | $1,696.56 | $1,825.28 | +7.6% | Fairly valued |
| BKNG Booking Holdings Inc. | $159.02 | $189.22 | +19.0% | Undervalued |
When does LOW report earnings, and how has the stock reacted?
Lowe's Companies's next earnings report is scheduled for 18 Nov 2026. Companies can move their dates.
Options prices on 2 Oct 2026 imply a move of about 4.5% in either direction through the nearest expiry, about 13 days out. That is the size the market is pricing, not a direction. LOW's 30 day implied volatility works out to about 8.9% over one month.
How LOW moved around its last 8 earnings reports
Each move runs from the last close before the report to the first close after it, so it covers companies that report before the open and after the close. The median size across these 8 reports, ignoring direction, was 2.2%.
| Report date | Two session move |
|---|---|
| 19 Aug 2026 | +0.8% |
| 20 May 2026 | -0.4% |
| 25 Feb 2026 | -5.1% |
| 19 Nov 2025 | +4.0% |
| 20 Aug 2025 | -0.3% |
| 21 May 2025 | -3.2% |
| 26 Feb 2025 | +1.3% |
| 19 Nov 2024 | -3.2% |
Lowe's Companies at a glance
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.
- Market value
- $106.1B
- Sector
- Consumer Cyclical
- Industry
- Home Improvement
- Revenue expected, next twelve months
- $93.7B
- Consensus revenue growth, next fiscal year
- +6.8%
- Analysts with estimates
- 20
- Beta to the US market
- 0.39
- First valued by Faircurve
- 1 May 2026
How the fair value is worked out: the model prices Lowe's Companies on the value of the whole business, debt included, against the operating profit analysts expect next year (forward EV/EBITDA), runs 2,000 simulations across its inputs and takes the midpoint. The full method is documented here.
What changed in the latest valuation?
On 19 Sep 2026 the model's fair value for LOW was $209.10. As of 26 Sep 2026 it is $205.25, a change of -1.8%. The model revalues every stock it covers each week, and again after an earnings report.
Questions about Lowe's Companies's valuation
Is Lowe's Companies stock undervalued or overvalued?
On Faircurve's model, LOW reads as Fairly valued as of 26 Sep 2026. The model's fair value is $205.25 a share against a last close of $180.80, a gap of +13.5%.
What is LOW's fair value?
$205.25 a share as of 26 Sep 2026, the midpoint of 2,000 simulations. The model's own 20th to 80th percentile range is $150.24 to $268.55.
What price range does the model give LOW?
$166.93 to $207.88 over 63 trading days. Ranges built this way held the price 60% of the time across 3,330 past valuations, refreshed 26 Sep 2026.
When does Lowe's Companies report earnings next?
The next report is scheduled for 18 Nov 2026. Companies can move their dates.
How much has LOW moved on past earnings reports?
Across its last 8 reports the median two session move was 2.2%, ignoring direction. The largest was -5.1% around the report of 25 Feb 2026.
How confident is the model in this valuation?
The model's evidence grade for LOW is medium. The grade looks at how complete the inputs are, how many comparable companies there are and how closely they agree, and how wide the range of outcomes is. It is not a probability that the fair value is right, or that the price reaches it.