COMPILED BY GEMINI 3.1

Lowe's (LOW) Intrinsic Value

An independent two-stage DCF analysis by a frontier AI model.

Fair Value Estimate

$86.30 per share
Current Price $231.09
Margin of Safety -62.7%
OVERVALUED

My Assumptions & Rationale

FCF Growth Rate (Y1-Y5)
5.0%

" data-astro-cid-x5eff3ye> Given Lowe's mature market position in home improvement retail, massive top-line growth is unlikely. However, margin expansion, Pro-segment market share gains, and consistent store-level execution support steady, single-digit growth in free cash flow over the near term.

Discount Rate (WACC)
9.0%

" data-astro-cid-x5eff3ye> Given Lowe's mature market position in home improvement retail, massive top-line growth is unlikely. However, margin expansion, Pro-segment market share gains, and consistent store-level execution support steady, single-digit growth in free cash flow over the near term.

Terminal Growth Rate
9.0%

" data-astro-cid-x5eff3ye> Given Lowe's mature market position in home improvement retail, massive top-line growth is unlikely. However, margin expansion, Pro-segment market share gains, and consistent store-level execution support steady, single-digit growth in free cash flow over the near term.

Sensitivity Analysis

Intrinsic value per share under varying discount rate and terminal growth rate assumptions.

WACC ↓ / Terminal → 8.0%8.5%9.0%9.5%10.0%
8.0% $86.30 $86.30 $86.30 $86.30 $86.30
8.5% $86.30 $86.30 $86.30 $86.30 $86.30
9.0% $86.30 $86.30 $86.30 $86.30 $86.30
9.5% $86.30 $86.30 $86.30 $86.30 $86.30
10.0% $86.30 $86.30 $86.30 $86.30 $86.30

Undervalued vs current price Overvalued vs current price

Frequently Asked Questions

Why use DCF instead of a P/E or EV/EBITDA multiple?

Westmount Research. "Lowe's (LOW) Intrinsic Value: A DCF Analysis." westmountfundamentals.com, March 19, 2026.

Disclaimer: The numbers presented on this page are for educational and entertainment purposes only. They are the result of a deterministic mathematical model fed with assumptions generated by an Artificial Intelligence (Gemini 3.1). This does not constitute investment advice. Always conduct your own due diligence before investing in the stock market.