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STOCK COMPARISON

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

Both stocks run through our valuation models. Here is how Lowe's Companies (LOW) and Home Depot (HD) 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: Lowe's Companies trades at $218 versus a fair value of $186 (-15%), while Home Depot trades at $350 versus $237 (-32%).
Lowe's Companies
LOW · USD · Consumer Discretionary
-15%
upside to fair value
overvalued
Price$218
Fair Value$186
Quality58/100
Home Depot
HD · USD · Consumer Discretionary
-32%
upside to fair value
overvalued
Price$350
Fair Value$237
Quality55/100

Head-to-head numbers

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

Lowe's CompaniesHome Depot
Valuation
17.5×P/E (TTM)24.4×
1.32×P/S (TTM)2.06×
—P/B26.72×
12.1×EV/EBITDA15.5×
1.36×PEG1.94×
2.3%Dividend yield2.1%
$4.80Dividend per share$6.93
Profitability
8%Net margin8%
11%Operating margin12%
—Return on equity128%
13%Return on assets13%
Growth
10%Revenue growth (YoY)5%
-3.8%Avg. growth/yr (3Y)1.5%
-0.8%Avg. growth/yr (5Y)4.5%
Balance & size
—Debt / equity3.62×
$116BMarket cap$342B
weakGrowth qualityhealthy

Lowe's Companies leads: 7 to 4 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.

Lowe's Companiesof which business quality 64 · market factors 42 Home Depotof which business quality 55 · market factors 49
ProfitabilityMargins and returns on capital today
78
83
Quality GrowthAre margins and returns improving?
28
30
CashflowEarnings quality: real cash, not paper profit
57
50
Fin. StrengthBalance sheet, leverage, solvency risk
51
34
InvestmentDisciplined investing over empire-building
83
48
Low VolatilityCalm price path (market factor)
73
71
MomentumPrice trend over the last 3–12 months (market factor)
32
42
52W MomentumDistance to the 52-week high (market factor)
24
38
Net IssuanceBuybacks instead of dilution
97
84

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.

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.

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.

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.

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

Lowe's Companies · Consumer Discretionary

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

Home Depot · Consumer Discretionary

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

Bottom line

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

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

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

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