How Lowe’s Valuation Multiple Compares to Its Peers
A forward PE multiple is calculated by dividing a company’s current stock price from analysts’ earnings estimates for the next four quarters. Lowe’s lower-than-expected 4Q17 EPS (earnings per share) led to a fall in its stock and valuation multiple. As of March 2, 2018, Lowe’s was trading at a forward PE multiple of 15.3x compared to 16.4x before the announcement of its 4Q17 earnings.