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STOCK COMPARISON

Home Depot vs Lowe's: Fair Value & Quality

Both stocks run through our valuation models. Here is how Home Depot (HD) and Lowe's (LOW) compare, as of Nov 4, 2026.

As of Nov 4, 2026, Fair Value Calculator sees Lowe's as the less overvalued of the two: Home Depot trades at $355 versus a fair value of $237 (−33.4%), while Lowe's trades at $229 versus $186 (−18.8%).
Home Depot
HD · USD · Consumer Discretionary
−33.4%
upside to fair value
overvalued
Price$355
Fair Value$237
Quality57/100
Fair ValueQualityUptrend
Lowe's
LOW · USD · Consumer Discretionary
−18.8%
upside to fair value
overvalued
Price$229
Fair Value$186
Quality66/100
Fair ValueQualityUptrend
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Head-to-head numbers

Green is the better side of a row, red the weaker one (for valuation multiples: lower = cheaper). Grey rows are for reference only and are not scored.

betterweakerfor reference, not scored

Home DepotLowe's
Valuation
24.7×P/E (TTM)19.4×
22.2×Forward P/E (FY2028)17.6×
23.0×Median P/E at FY-end (10 FY, ex one-offs where documented)21.2×
2.10×P/S (TTM)1.42×
27.66× · book value is mostly goodwillP/BNegative equity
16.2×EV/EBITDA13.0×
2.50×PEG1.31×
−33.4%Fair value upside−18.8%
1.3%Dividend yield2.1%
$4.63Dividend per share$4.85
Profitability
12.9%Operating margin13.4%
0.92×EBIT margin trend (5Y)0.98×
104.3%Return on equityNegative equity
13.5%Return on assets12.3%
Growth
5.7%Revenue growth (YoY)8.3%
1.5%Avg. growth/yr (3Y)-3.8%
4.5%Avg. growth/yr (5Y)-0.8%
+4.8%Value creation/yr+10.9%
Balance & size
8.7×Interest coverage (EBIT/interest)7.2×
3.62×Debt / equityNegative equity
$354BMarket cap$128B
healthyGrowth qualityweak
Home Depot, median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings, FY2019 ex one-offs: 23. Lowe's, median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings, FY2019, FY2023 ex one-offs: 21.2.
Forward P/E: price divided by the analyst consensus for the first fiscal year that has not started yet. The current year carries special items from quarters already reported.

Lowe's leads: 5 to 9 metric wins.

n/a = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Home Depot Lowe's
ProfitabilityHow much profit the company makes from its sales and capital
83
78
Quality GrowthAre margins and returns getting better?
30
28
CashflowDo the profits arrive as real cash?
50
57
Financial strengthDebt, balance sheet and risk of trouble
34
51
InvestmentDoes it invest with discipline instead of growing at any price?
48
83
Low VolatilityHow calm the share price moves, does not count
67
69
Price momentumPrice momentum of the last 3 to 12 months, does not count
36
33
Near the 52-week highDistance to the 52-week high, does not count
51
41
New sharesBuys back shares or issues new ones?
84
97

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model familyHome DepotPrice $355Lowe'sPrice $229
DCF Models−30.5%below the price$247−11.3%close to the price$204
Earnings-Based−64.3%below the price$127−62.0%below the price$87.17
Dividend Discount−52.8%below the price$168−64.6%below the price$81.29
Multiples−33.4%below the price$237−18.8%below the price$186
Growth DCF−40.9%below the price$210−21.1%below the price$181
Economic Profit−67.5%below the price$115−48.6%below the price$118
Growth Earnings−19.7%below the price$285+0.5%close to the price$231
Matching families7 of 7
Minimum−67.5%below the price$115−64.6%below the price$81.29
Maximum−19.7%below the price$285+0.5%close to the price$231
Median−40.9%below the price$210−21.1%below the price$181
Geometric mean−46.8%below the price$189−37.0%below the price$145
Ahead family by family1 of 76 of 7

Minimum, maximum, median and geometric mean only use the families both stocks have (matching families: 7 of 7), so a family without a value on one side does not distort the comparison. Ahead in a family is the stock whose fair value there sits higher relative to its price. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Family by family: Lowe's is ahead in 6 of 7 shared families, Home Depot in 1.

Home Depot: 24 of 24 models see the stock below the current price.

Lowe's: 19 of 23 models see the stock below the current price.

Scenario ranges

From our cautious bear scenario to the optimistic bull scenario. The white tick is the current price (value above it), the green tick the fair value (value below it): if the price sits left of the fair value, there is room to rise.

Home Depot
Price $355
Fair Value $237
Bear $140Bull $312
Lowe's
Price $229
Fair Value $186
Bear $111Bull $252

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Home Depot · Consumer Discretionary

Quality score57 · above median
Fair value upside−33.4% · below median

Lowe's · Consumer Discretionary

Quality score66 · Top 25%
Fair value upside−18.8% · below median

Bottom line

As of Nov 4, 2026, Fair Value Calculator sees Lowe's as the less overvalued of the two: Home Depot trades at $355 versus a fair value of $237 (−33.4%), while Lowe's trades at $229 versus $186 (−18.8%).

Lowe's has the higher quality score (66/100).

Open Lowe's live analysis →

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.