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Lowe's Companies Inc (NYSE:LOW)
P/B Ratio
10.00 (As of Today)

As of today, Lowe's Companies Inc's share price is $80.65. Lowe's Companies Inc's Book Value per Share for the quarter that ended in Apr. 2016 was $8.07. Hence, Lowe's Companies Inc's P/B Ratio of today is 10.00.

Warning Sign:

Lowe's Companies Inc stock P/B Ratio (=10.12) is close to 10-year high of 10.21

LOW' s P/B Ratio Range Over the Past 10 Years
Min: 1.09   Max: 10.21
Current: 10.01

1.09
10.21

During the past 13 years, Lowe's Companies Inc's highest P/B Ratio was 10.21. The lowest was 1.09. And the median was 2.86.

LOW's P/B Ratio is ranked lower than
94% of the 975 Companies
in the Global Home Improvement Stores industry.

( Industry Median: 1.59 vs. LOW: 10.01 )

During the past 12 months, Lowe's Companies Inc's average Book Value Per Share Growth Rate was -19.00% per year. During the past 3 years, the average Book Value Per Share Growth Rate was -11.20% per year. During the past 5 years, the average Book Value Per Share Growth Rate was -8.30% per year. During the past 10 years, the average Book Value Per Share Growth Rate was -0.30% per year.

During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Lowe's Companies Inc was 24.60% per year. The lowest was -11.20% per year. And the median was 14.00% per year.


Definition

Lowe's Companies Inc's P/B ratio for today is calculated as follows:

P/B Ratio=Share Price/Book Value per Share (Q: Apr. 2016)
=80.65/8.067
=10.00

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

It can also be calculated from the numbers for the whole company:

A closely related ratio is called Price-to-Tangible-Book Ratio. The difference between Price-to-Tangible-Book Ratio and Price-to-Book Ratio is that book value other than intangibles are used in the calculation.


Explanation

Unlike valuation ratios relative to the earning power such as P/E ratio, P/S ratio or Price-to-Free-Cash-Flow ratio, the Price-to-Book Ratio measures the valuation of the stock relative to the underlying asset of the company.

The Price-to-Book Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.


Be Aware

Some businesses have very light assets, such as software companies or insurance agencies. The Price-to-Book Ratio does not work well for these companies. Some companies even have negative equity, so the Price-to-Book Ratio cannot be applied to them.


Related Terms

Book Value per Share, Market Cap, Total Equity, Preferred Stock, P/E ratio, P/S ratio, Price-to-Free-Cash-Flow ratio, Price-to-Tangible-Book Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Lowe's Companies Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
pb 3.272.391.491.661.852.073.174.026.538.52

Lowe's Companies Inc Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
pb 4.024.074.225.196.536.927.418.088.529.42
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