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.