EN DE
STOCK COMPARISON

Home Depot vs Lowe's Companies: Fair Value & Quality

Both stocks run through our valuation models. Here is how Home Depot (HD) and Lowe's Companies (LOW) compare, as of Sep 22, 2026.

As of Sep 22, 2026, Fair Value Calculator sees Lowe's Companies as the less overvalued of the two: Home Depot trades at $300 versus a fair value of $237 (-21%), while Lowe's Companies trades at $192 versus $186 (-3%).
Home Depot
HD · USD · Consumer Discretionary
-21%
upside to fair value
overvalued
Price$300
Fair Value$237
Quality54/100
Lowe's Companies
LOW · USD · Consumer Discretionary
-3%
upside to fair value
fairly valued
Price$192
Fair Value$186
Quality66/100
Get comparisons like this free by email every month: the most undervalued quality stocks.

Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

Home DepotLowe's Companies
Valuation
24.4×P/E (TTM)17.3×
2.06×P/S (TTM)1.32×
26.72×P/B
15.5×EV/EBITDA12.1×
1.94×PEG1.36×
−21.0%Fair value upside−3.2%
2.2%Dividend yield2.3%
$6.93Dividend per share$4.80
Profitability
12%Operating margin11%
0.92×EBIT margin trend (5Y)0.98×
128%Return on equity
13%Return on assets13%
Growth
5%Revenue growth (YoY)10%
1.5%Avg. growth/yr (3Y)-3.8%
4.5%Avg. growth/yr (5Y)-0.8%
+5.7%Value creation/yr+11.1%
Balance & size
8.7×Interest coverage (EBIT/interest)7.2×
3.62×Debt / equity
$342BMarket cap$116B
healthyGrowth qualityweak

Lowe's Companies leads: 5 to 8 metric wins.

Dash = 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 Depotof which business quality 55 · market factors 35 Lowe's Companiesof which business quality 64 · market factors 31
ProfitabilityMargins and returns on capital today
83
78
Quality GrowthAre margins and returns improving?
30
28
CashflowEarnings quality: real cash, not paper profit
50
57
Fin. StrengthBalance sheet, leverage, solvency risk
34
51
InvestmentDisciplined investing over empire-building
48
83
Low VolatilityCalm price path (market factor)
71
73
MomentumPrice trend over the last 3–12 months (market factor)
28
20
52W MomentumDistance to the 52-week high (market factor)
7
1
Net IssuanceShare count: buybacks or dilution?
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 $300Lowe's CompaniesPrice $192
DCF Models-18%below the price$247-6%close to the price$182
Earnings-Based-57%below the price$129-55%below the price$86.77
Dividend Discount-42%below the price$174-58%below the price$80.68
Multiples-24%below the price$227+3%close to the price$199
Asset-Based-97%below the price$8.61n/a
Growth DCF-36%below the price$193-18%below the price$158
Economic Profit-57%below the price$128-39%below the price$117
Growth Earnings-5%close to the price$285+20%above the price$231
Minimum-97%below the price$8.61-58%below the price$80.68
Maximum-5%close to the price$285+20%above the price$231
Median-39%below the price$184-18%below the price$158
Geometric mean-57%below the price$129-27%below the price$140

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Home Depot: 23 of 26 models see the stock below the current price.

Lowe's Companies: 16 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 $300
Fair Value $237
Bear $129Bull $328
Lowe's Companies
Price $192
Fair Value $186
Bear $97.82Bull $252

Compare two other stocks

Tap a field and type again, ticker or company name.

Free, no sign-up

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 score54 · above median
Fair value upside-21% · below median

Lowe's Companies · Consumer Discretionary

Quality score66 · Top 25%
Fair value upside-3% · below median

Bottom line

As of Sep 22, 2026, Fair Value Calculator sees Lowe's Companies as the less overvalued of the two: Home Depot trades at $300 versus a fair value of $237 (-21%), while Lowe's Companies trades at $192 versus $186 (-3%).

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

See the full analysis →

More comparisons

Popular match-ups from the same sectors, all with fair value and quality score.

Free · Top-25 report

See the undervalued quality stocks every month

Just your email for the monthly Top-25 report of the most undervalued quality stocks, with fair value, quality and price target. Plus 14 days of Pro to try, no card.

Free. You confirm by email (double opt-in) and can unsubscribe anytime in one click. Not financial advice.

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