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Lowe's (STU:LWE) E10 : €8.09 (As of Jan. 2025)


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What is Lowe's E10?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Lowe's's adjusted earnings per share data for the three months ended in Jan. 2025 was €1.922. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is €8.09 for the trailing ten years ended in Jan. 2025.

During the past 12 months, Lowe's's average E10 Growth Rate was 14.90% per year. During the past 3 years, the average E10 Growth Rate was 19.20% per year. During the past 5 years, the average E10 Growth Rate was 23.80% per year. During the past 10 years, the average E10 Growth Rate was 17.50% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Lowe's was 27.70% per year. The lowest was 5.20% per year. And the median was 17.30% per year.

As of today (2025-03-19), Lowe's's current stock price is €205.95. Lowe's's E10 for the quarter that ended in Jan. 2025 was €8.09. Lowe's's Shiller PE Ratio of today is 25.46.

During the past 13 years, the highest Shiller PE Ratio of Lowe's was 57.37. The lowest was 22.27. And the median was 36.36.


Lowe's E10 Historical Data

The historical data trend for Lowe's's E10 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 E10 Chart

Lowe's Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.06 4.40 5.41 6.78 8.09

Lowe's Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
E10 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 6.78 7.19 7.33 7.57 8.09

Competitive Comparison of Lowe's's E10

For the Home Improvement Retail subindustry, Lowe's's Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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 Shiller PE Ratio Distribution in the Retail - Cyclical Industry

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

* The bar in red indicates where Lowe's's Shiller PE Ratio falls into.



Lowe's E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

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.

For example, Lowe's's adjusted earnings per share data for the three months ended in Jan. 2025 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jan. 2025 (Change)*Current CPI (Jan. 2025)
=1.922/134.0288*134.0288
=1.922

Current CPI (Jan. 2025) = 134.0288.

Lowe's Quarterly Data

per share eps CPI Adj_EPS
201504 0.647 99.824 0.869
201507 1.091 100.691 1.452
201510 0.713 100.346 0.952
201601 0.009 99.957 0.012
201604 0.863 100.947 1.146
201607 1.186 101.524 1.566
201610 0.390 101.988 0.513
201701 0.696 102.456 0.910
201704 0.653 103.167 0.848
201707 1.457 103.278 1.891
201710 0.894 104.070 1.151
201801 0.549 104.578 0.704
201804 0.970 105.708 1.230
201807 1.592 106.324 2.007
201810 0.679 106.695 0.853
201901 -0.902 106.200 -1.138
201904 1.166 107.818 1.449
201907 1.909 108.250 2.364
201910 1.229 108.577 1.517
202001 0.595 108.841 0.733
202004 1.619 108.173 2.006
202007 3.254 109.318 3.990
202010 0.774 109.861 0.944
202101 1.084 110.364 1.316
202104 2.684 112.673 3.193
202107 3.596 115.183 4.184
202110 2.353 116.696 2.702
202201 1.574 118.619 1.778
202204 3.250 121.978 3.571
202207 4.591 125.002 4.923
202210 0.254 125.734 0.271
202301 1.466 126.223 1.557
202304 3.438 127.992 3.600
202307 4.122 128.974 4.284
202310 2.898 129.810 2.992
202401 1.625 130.124 1.674
202404 2.852 132.289 2.890
202407 3.845 132.708 3.883
202410 2.745 133.182 2.762
202501 1.922 134.029 1.922

Add all the adjusted EPS together and divide 10 will get our e10.


Lowe's  (STU:LWE) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Lowe's's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=205.95/8.09
=25.46

* 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.

During the past 13 years, the highest Shiller P/E Ratio of Lowe's was 57.37. The lowest was 22.27. And the median was 36.36.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Lowe's E10 Related Terms

Thank you for viewing the detailed overview of Lowe's's E10 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 70% of sales in 2024) and do-it-for-me customers, but has expanded its commercial and professional business clients to 30% 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.

Lowe's Headlines

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