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How Lowe’s Valuation Multiple Compares with Its Peers

How Lowe’s Valuation Multiple Compares with Its Peers

Due to its high visibility in Lowe’s (LOW) earnings, we have opted for the forward price-to-earnings multiple. The forward PE multiple is calculated by dividing the company’s stock price by analysts’ earnings per share estimates for the next four quarters. The lower-than-expected margins and EPS during the fourth quarter of 2017 led Lowe’s stock price and its valuation multiple to fall.