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LOW (Lowe's) Cyclically Adjusted PS Ratio : 2.07 (As of Jan. 19, 2025)


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What is Lowe's Cyclically Adjusted PS Ratio?

As of today (2025-01-19), Lowe's's current share price is $261.06. Lowe's's Cyclically Adjusted Revenue per Share for the quarter that ended in Oct. 2024 was $126.23. Lowe's's Cyclically Adjusted PS Ratio for today is 2.07.

The historical rank and industry rank for Lowe's's Cyclically Adjusted PS Ratio or its related term are showing as below:

LOW' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 0.99   Med: 1.82   Max: 3
Current: 2.07

During the past years, Lowe's's highest Cyclically Adjusted PS Ratio was 3.00. The lowest was 0.99. And the median was 1.82.

LOW's Cyclically Adjusted PS Ratio is ranked worse than
84.64% of 703 companies
in the Retail - Cyclical industry
Industry Median: 0.51 vs LOW: 2.07

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Lowe's's adjusted revenue per share data for the three months ended in Oct. 2024 was $35.636. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is $126.23 for the trailing ten years ended in Oct. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Lowe's Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Lowe's's Cyclically Adjusted PS Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Lowe's Cyclically Adjusted PS Ratio Chart

Lowe's Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.74 2.20 2.62 1.96 1.81

Lowe's Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
Cyclically Adjusted PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.65 1.81 1.87 1.98 2.07

Competitive Comparison of Lowe's's Cyclically Adjusted PS Ratio

For the Home Improvement Retail subindustry, Lowe's's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Lowe's's Cyclically Adjusted PS Ratio Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Lowe's's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where Lowe's's Cyclically Adjusted PS Ratio falls into.



Lowe's Cyclically Adjusted PS Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio.

Lowe's's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=261.06/126.23
=2.07

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Lowe's's Cyclically Adjusted Revenue per Share for the quarter that ended in Oct. 2024 is calculated as:

For example, Lowe's's adjusted Revenue per Share data for the three months ended in Oct. 2024 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Oct. 2024 (Change)*Current CPI (Oct. 2024)
=35.636/133.1820*133.1820
=35.636

Current CPI (Oct. 2024) = 133.1820.

Lowe's Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201501 12.982 98.604 17.535
201504 14.841 99.824 19.800
201507 18.594 100.691 24.594
201510 15.592 100.346 20.694
201601 14.561 99.957 19.401
201604 16.945 100.947 22.356
201607 20.633 101.524 27.067
201610 18.008 101.988 23.516
201701 18.184 102.456 23.637
201704 19.650 103.167 25.367
201707 23.153 103.278 29.857
201710 20.156 104.070 25.794
201801 18.713 104.578 23.831
201804 21.017 105.708 26.479
201807 25.661 106.324 32.143
201810 21.580 106.695 26.937
201901 19.559 106.200 24.528
201904 22.260 107.818 27.497
201907 26.878 108.250 33.069
201910 22.582 108.577 27.699
202001 21.005 108.841 25.703
202004 26.025 108.173 32.042
202007 36.258 109.318 44.173
202010 29.588 109.861 35.869
202101 27.522 110.364 33.212
202104 33.919 112.673 40.093
202107 38.996 115.183 45.090
202110 33.214 116.696 37.906
202201 31.197 118.619 35.027
202204 35.739 121.978 39.022
202207 42.998 125.002 45.812
202210 37.869 125.734 40.112
202301 37.161 126.223 39.210
202304 37.432 127.992 38.950
202307 42.660 128.974 44.052
202310 35.478 129.810 36.400
202401 32.351 130.124 33.111
202404 37.350 132.289 37.602
202407 41.379 132.708 41.527
202410 35.636 133.182 35.636

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Lowe's  (NYSE:LOW) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PS Ratio should give similar results to regular PS Ratio.


Lowe's Cyclically Adjusted PS Ratio Related Terms

Thank you for viewing the detailed overview of Lowe's's Cyclically Adjusted PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Lowe's Business Description

Address
1000 Lowes Boulevard, Mooresville, NC, USA, 28117
Lowe's is the second-largest home improvement retailer in the world, operating more than 1,700 stores in the United States, after the 2023 divestiture of its Canadian locations (RONA, Lowe's Canada, Réno-Dépôt, and Dick's Lumber). The firm's stores offer products and services for home decorating, maintenance, repair, and remodeling, with maintenance and repair accounting for two thirds of products sold. Lowe's primarily targets retail do-it-yourself (around 75% of sales) and do-it-for-me customers, but has expanded its commercial and professional business clients to 25% from less than 20% in the past six years. We estimate Lowe's captures a high-single-digit share of the domestic home improvement market, based on US Census data and management's market size estimates.
Executives
Quonta D Vance officer: EVP, Pro & Home Services 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
Joseph Michael Mcfarland officer: EVP, Stores 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
Seemantini Godbole officer: EVP, Chief Information Officer 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
Griggs Dan Clayton Jr officer: Vice President, CAO 1000 LOWES BOULEVARD, MOORESVILLE NC 28117
Brandon J Sink officer: EVP, Chief Financial Officer 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
Janice Dupre Little officer: EVP Human Resources 1000 LOWES BOULEVARD, MOORESVILLE NC 28117
Donald Frieson officer: EVP, Supply Chain 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
William P Boltz officer: EVP, Merchandising 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
Juliette Williams Pryor officer: EVP, CLO & Corp. Sec. 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
Ross W Mccanless officer: SR VP Gen Counsel & Secretary
Scott H Baxter director 400 NORTH ELM STREET, GREENSBORO NC 27401
Taylor Colleen director C/O BILL.COM HOLDINGS, INC., 1800 EMBARCADERO ROAD, PALO ALTO CA 94303
Stone West Mary E director C/O HASBRO, INC., 1011 NEWPORT AVENUE, PAWTUCKET RI 02861
Daniel J Heinrich director CLOROX CO, 1221 BROADWAY, OAKLAND CA 94612
David H Batchelder director 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117