Stock fact sheet · data as of
Lowe's Companies, Inc. (LOW): fair value, margin of safety and Wheel Score
Consumer Cyclical · Home Improvement · United States · Value
Is LOW undervalued?
LOW closed at 195.72 on 16 Oct 2026, which is 11% above the GLS average fair value of 176.14 from 8 models. 5 of them value the shares below today's price. Our screens read that as "no margin of safety": the stock is not a value candidate at this price, whatever the quality numbers say.
The 8 models disagree widely: GLS Growth gives 67.51 while 10 Cap gives 350.66. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files LOW under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for LOW
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 143.49 | -27% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | 283.66 | +45% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 94.56 | -52% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 67.51 | -66% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 350.66 | +79% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 265.88 | +36% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 71.36 | -64% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 132.02 | -33% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -76.83 | -139% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 244.09 | +25% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - LOW passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 4.7 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are high - ROIC 19.1%, ROE -67.1%, ROA 12.3% - with debt at -4.51 times equity and a free-cash-flow yield of 6.4%.
The dividend yield is 2.48% at a payout ratio of 41%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Hardlines 33%, Home Decor 33%, Building Products 32% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 2/10 and Congressional trading 1/10 on the GLS smart-money scales; the last recorded Congressional buy was on 10 Aug 2026.
| Piotroski F-score | 5 / 9 | ROIC | 19.1% |
|---|---|---|---|
| GLS Moat | 4.7 / 10 | ROE | -67.1% |
| Debt / equity | -4.51 | ROA | 12.3% |
| Free-cash-flow yield | 6.4% | Payout ratio | 41% |
| Institutions | 10 / 10 | Insiders · Congress | 2 · 1 / 10 |
Wheel Score 65: Good
LOW scores 65 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 8/25), Piotroski health (11/20), the GLS moat (7/15), the option premium on offer (19/20) and how easily the stock trades (20/20). Value (8/25) is the part holding the score back.
Implied volatility is 34% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (19 of 20 points). The option chain is deep: 144,380 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 3.9M shares a day on a market cap of $109.8B, with a beta of 0.88; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 8 / 25 | -11% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 7 / 15 | moat 4.7/10 | |
| Premium | 19 / 20 | implied volatility 34% | |
| Stability | 20 / 20 | 3.9M shares/day, $109.8B cap, beta 0.88 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 18 Nov 2026 (before the open), 33 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium. The shares go ex-dividend on 21 Oct 2026 (1.25 per share), so a covered call sold before then carries a small early-assignment risk around that date.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Home Improvement
The 12 companies below are the closest to Lowe's Companies, Inc. by market cap within the Home Improvement industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| HD The Home Depot, Inc. | 308.24 | 328.02 | +6% | 74Good | $307.5B |
| FND Floor & Decor Holdings, Inc. | 45.76 | 49.50 | +8% | 76Good | $4.9B |
| HVT Haverty Furniture Companies, Inc. | 28.21 | 26.59 | -6% | 55Fair | $440M |
| TTSH Tile Shop Holdings, Inc. | 2.17 | 4.12 | +47% | 39No options | $86M |
| MWYN Marwynn Holdings, Inc. Common stock | 1.93 | - | - | 26No options | $39M |
| LIVE Live Ventures Incorporated | 7.45 | 78.07 | +90% | 39No options | $23M |
| SBUX Starbucks Corporation | 93.25 | 44.22 | -111% | 62Fair | $106.3B |
| ABNB Airbnb, Inc. | 174.28 | 132.55 | -31% | 65Good | $104.4B |
| PDD PDD Holdings Inc. | 81.45 | 507.91 | +84% | 87Prime | $115.9B |
| MAR Marriott International, Inc. | 385.71 | 202.06 | -91% | 57Fair | $100.6B |
| BKNG Booking Holdings Inc. | 165.80 | 284.93 | +42% | 88Prime | $124.6B |
| MELI MercadoLibre, Inc. | 1,856.98 | 1,877.00 | +1% | 72Good | $94.1B |
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Start free See the Sunday ScanQuestions about LOW
Is LOW undervalued right now?
No: at 195.72 the stock trades 11% above the GLS average fair value of 176.14 (data as of 16 Oct 2026). The margin of safety is negative.
What is the Wheel Score of LOW and what does it mean?
LOW scores 65 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for LOW?
176.14 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Lowe's Companies, Inc. report earnings next?
The next earnings report is due on 18 Nov 2026 (before the open), 33 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does LOW have listed options, and how liquid are they?
Yes. The nightly snapshot found 1,000 listed contracts with 144,380 open interest across all expiries and implied volatility of 34% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.