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GuruFocus has detected 1 Warning Sign with Lowe's Companies Inc $LOW.
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Lowe's Companies Inc (NYSE:LOW)
PEG Ratio
PE(NRI) Ratio / EBITDA 5-Y Growth
1.43 (As of Today)

PEG is defined as the P/E (NRI) Ratio divided by the growth ratio. The growth rate we use is the 5-year average EBITDA growth rate. As of today, Lowe's Companies Inc's P/E (NRI) Ratio is 24.22. Lowe's Companies Inc's 5-year average EBITDA growth rate is 16.90%. Therefore, Lowe's Companies Inc's PEG for today is 1.43.

LOW' s PEG Ratio Range Over the Past 10 Years
Min: 0.56   Max: 306.86
Current: 1.42

0.56
306.86

During the past 13 years, Lowe's Companies Inc's highest PEG was 306.86. The lowest was 0.56. And the median was 1.49.

LOW's PEG Ratio is ranked higher than
66% of the 299 Companies
in the Global Home Improvement Stores industry.

( Industry Median: 2.10 vs. LOW: 1.42 )

Peter Lynch thinks a company with a P/E (NRI) ratio equal to its growth rate is fairly valued.


Definition

PEG is defined as the P/E (NRI) Ratio divided by the growth ratio. The ratio we use is the 5-year average EBITDA growth rate.

Lowe's Companies Inc's PEG for today is calculated as

PEG=P/E (NRI) Ratio/EBITDA Growth Rate (5-year average)
=24.2201257862/16.90
=1.43

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG. PEG is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Related Terms

P/E (NRI) Ratio, Peter Lynch Fair Value


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Lowe's Companies Inc Annual Data

Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16Jan17
peg 0.811.089.800.000.0013.692.371.741.531.24

Lowe's Companies Inc Quarterly Data

Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17Apr17
peg 1.741.611.461.371.531.441.491.401.241.65
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