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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 Aug 8, 2026.

As of Aug 8, 2026, Fair Value Calculator sees Lowe's Companies as the less overvalued of the two: Home Depot trades at $350 versus a fair value of $237 (-32%), while Lowe's Companies trades at $218 versus $186 (-15%).
Home Depot
HD · USD · Consumer Discretionary
-32%
upside to fair value
overvalued
Price$350
Fair Value$237
Quality55/100
Lowe's Companies
LOW · USD · Consumer Discretionary
-15%
upside to fair value
overvalued
Price$218
Fair Value$186
Quality58/100

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)17.5×
2.06×P/S (TTM)1.32×
26.72×P/B—
15.5×EV/EBITDA12.1×
1.94×PEG1.36×
2.1%Dividend yield2.3%
$6.93Dividend per share$4.80
Profitability
8%Net margin8%
12%Operating margin11%
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%
Balance & size
3.62×Debt / equity—
$342BMarket cap$116B
healthyGrowth qualityweak

Lowe's Companies leads: 4 to 7 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 49 Lowe's Companiesof which business quality 64 · market factors 42
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)
42
32
52W MomentumDistance to the 52-week high (market factor)
38
24
Net IssuanceBuybacks instead of dilution
84
97

What the models say

The median fair value (base case) per model family, each in the currency of its trading venue. Green = above the current price, red = below.

Home Depot

DCF Models$251
Earnings-Based$129
Dividend Discount$174
Multiples$261
Asset-Based$8.61
Growth DCF$225
Economic Profit$128
Growth Earnings$262

26 of 26 models see the stock below the current price.

Lowe's Companies

DCF Models$182
Earnings-Based$86.77
Dividend Discount$80.68
Multiples$221
Growth DCF$178
Economic Profit$117
Growth Earnings$212

18 of 23 models see the stock below the current price.

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

Home Depot
Bear $132Fair Value $237Bull $336
$350 = current price (white tick)
Lowe's Companies
Bear $100Fair Value $186Bull $252
$218 = current price (white tick)

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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 score55 · above median
Fair value upside-32% · below median

Lowe's Companies · Consumer Discretionary

Quality score58 · Top 25%
Fair value upside-15% · below median

Bottom line

As of Aug 8, 2026, Fair Value Calculator sees Lowe's Companies as the less overvalued of the two: Home Depot trades at $350 versus a fair value of $237 (-32%), while Lowe's Companies trades at $218 versus $186 (-15%).

Lowe's Companies has the higher quality score (58/100).

See the full analysis →
Home Depot · Lowe's Companies

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A model-based valuation snapshot from 21 models. Values change with price and fundamentals; the date shown above applies.