GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Lowe's Companies Inc (NYSE:LOW) » Definitions » Cyclically Adjusted Price-to-FCF

LOW (Lowe's) Cyclically Adjusted Price-to-FCF : 28.37 (As of Oct. 31, 2024)


View and export this data going back to 1979. Start your Free Trial

What is Lowe's Cyclically Adjusted Price-to-FCF?

As of today (2024-10-31), Lowe's's current share price is $261.83. Lowe's's Cyclically Adjusted FCF per Share for the quarter that ended in Jul. 2024 was $9.23. Lowe's's Cyclically Adjusted Price-to-FCF for today is 28.37.

The historical rank and industry rank for Lowe's's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

LOW' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 17.24   Med: 29.95   Max: 46.44
Current: 28.32

During the past years, Lowe's's highest Cyclically Adjusted Price-to-FCF was 46.44. The lowest was 17.24. And the median was 29.95.

LOW's Cyclically Adjusted Price-to-FCF is ranked worse than
75.52% of 429 companies
in the Retail - Cyclical industry
Industry Median: 12.73 vs LOW: 28.32

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 Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Lowe's's adjusted free cash flow per share data for the three months ended in Jul. 2024 was $4.784. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $9.23 for the trailing ten years ended in Jul. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Lowe's Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Lowe's's Cyclically Adjusted Price-to-FCF 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 Price-to-FCF Chart

Lowe's Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 30.23 33.82 37.84 27.90 25.43

Lowe's Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
Cyclically Adjusted Price-to-FCF 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 28.74 23.08 25.43 25.46 26.60

Competitive Comparison of Lowe's's Cyclically Adjusted Price-to-FCF

For the Home Improvement Retail subindustry, Lowe's's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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 Price-to-FCF Distribution in the Retail - Cyclical Industry

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

* The bar in red indicates where Lowe's's Cyclically Adjusted Price-to-FCF falls into.



Lowe's Cyclically Adjusted Price-to-FCF Calculation

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

Lowe's's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=261.83/9.23
=28.37

* 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 FCF per Share for the quarter that ended in Jul. 2024 is calculated as:

For example, Lowe's's adjusted Free Cash Flow per Share data for the three months ended in Jul. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Jul. 2024 (Change)*Current CPI (Jul. 2024)
=4.784/132.7078*132.7078
=4.784

Current CPI (Jul. 2024) = 132.7078.

Lowe's Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201410 0.569 100.176 0.754
201501 -0.050 98.604 -0.067
201504 2.359 99.824 3.136
201507 1.445 100.691 1.904
201510 0.117 100.346 0.155
201601 -0.127 99.957 -0.169
201604 3.350 100.947 4.404
201607 1.272 101.524 1.663
201610 0.356 101.988 0.463
201701 0.001 102.456 0.001
201704 3.605 103.167 4.637
201707 1.787 103.278 2.296
201710 -0.016 104.070 -0.020
201801 -0.777 104.578 -0.986
201804 3.880 105.708 4.871
201807 2.505 106.324 3.127
201810 0.877 106.695 1.091
201901 -1.166 106.200 -1.457
201904 2.424 107.818 2.984
201907 1.440 108.250 1.765
201910 0.165 108.577 0.202
202001 -0.488 108.841 -0.595
202004 5.452 108.173 6.689
202007 9.190 109.318 11.156
202010 -0.967 109.861 -1.168
202101 -1.430 110.364 -1.720
202104 5.599 112.673 6.595
202107 2.880 115.183 3.318
202110 2.690 116.696 3.059
202201 0.493 118.619 0.552
202204 3.979 121.978 4.329
202207 4.211 125.002 4.471
202210 2.779 125.734 2.933
202301 -0.477 126.223 -0.502
202304 2.891 127.992 2.998
202307 5.944 128.974 6.116
202310 0.841 129.810 0.860
202401 0.849 130.124 0.866
202404 6.783 132.289 6.804
202407 4.784 132.708 4.784

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF 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 Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow 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 Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Lowe's Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Lowe's's Cyclically Adjusted Price-to-FCF 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 targets retail do-it-yourself (around 75% of sales) and do-it-for-me customers as well as commercial and professional business clients (around 25% of sales). 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
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
Seemantini Godbole officer: EVP, Chief Information Officer 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
Janice Dupre Little officer: EVP Human Resources 1000 LOWES BOULEVARD, MOORESVILLE NC 28117
Joseph Michael Mcfarland officer: EVP, Stores 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
Quonta D Vance officer: EVP, Pro & Home Services 1000 LOWE'S 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