Lowe’s Cos. Inc. (NYSE:LOW)

Market (fair) value of Lowe's

The market value shows a significant increase from January 2020 to January 2021, more than doubling from approximately $76.6 billion to $159.2 billion. This upward trend continues into January 2022, reaching $180.9 billion, the highest value recorded in the period under review. However, there is a notable decline in February 2023 to around $148.4 billion, indicating some market value correction or external pressures affecting the valuation. The market value recovers somewhat in February 2024, reaching $182.3 billion, which is even higher than the previous peak. By January 2025, it declines again to approximately $165.9 billion, suggesting volatility in market perceptions or performance concerns towards the end of the timeline.

Invested Capital

Invested capital remains relatively stable compared to market value fluctuations. It starts at $26.7 billion in January 2020 and shows a moderate increase to $28.5 billion in January 2021. Following that, there is a gradual decline reaching the lowest point of $24.7 billion in February 2023. A slight upward trend is observed in the last two periods, with invested capital rising to $25.9 billion in February 2024 and $26.3 billion in January 2025. Overall, invested capital shows limited volatility and a relatively narrow range throughout the years, indicating steady investment in the company’s operational base.

Market Value Added (MVA)

Market value added demonstrates a pattern similar to market value but at a different scale. It increases substantially from $49.8 billion in January 2020 to $130.7 billion in January 2021. Following this, MVA continues to grow, reaching its peak of $154.6 billion in January 2022. This is followed by a decrease to $123.7 billion in February 2023, reflecting some erosion in value creation relative to invested capital. The MVA rebounds to $156.4 billion in February 2024, slightly surpassing the previous high, before decreasing again to $139.6 billion by January 2025. The fluctuations in MVA align closely with the market value changes, indicating that market perceptions of value creation over invested capital have experienced periods of optimism and correction.

The financial data reflects significant fluctuations and overall growth in key metrics over the examined periods.

Market value added (MVA)

The MVA shows a strong upward trend from 49,848 million US$ in January 2020 to a peak of 156,355 million US$ in February 2024. However, a decline is observed in January 2025, where the value decreases to 139,649 million US$, indicating potential market valuation adjustments or performance factors affecting company valuation during this period.

Invested capital

Invested capital remains relatively stable throughout the periods, fluctuating narrowly between 24,710 million US$ and 28,534 million US$. It peaked in January 2021 at 28,534 million US$ but subsequently declined and settled around the mid-25,000 million US$ range, suggesting consistent investment levels in assets and operations with minor adjustments.

MVA spread ratio

The MVA spread ratio experiences substantial growth from 186.58% in January 2020 to a high of 603.38% in February 2024, reflecting increased market value relative to invested capital. A decrease to 531.47% is noted in January 2025, though the ratio remains significantly elevated compared to earlier periods. This pattern indicates a strong ability to generate market value above the invested capital base, despite recent downward adjustments.

Overall, the data indicates strong market value growth exceeding the increase in invested capital, with an especially marked expansion in MVA and the MVA spread ratio. The slight reductions in the final period warrant monitoring to assess if these represent temporary corrections or a shift in underlying value generation dynamics.

The financial data reveals significant fluctuations and notable trends over the examined period.

Market Value Added (MVA)

There was a substantial increase in MVA from 49,848 million US dollars in early 2020 to a peak of 156,355 million US dollars in early 2024. However, this value decreased in early 2025 to 139,649 million US dollars, indicating some recent decline after strong growth in prior years.

Adjusted Net Sales

Adjusted net sales showed a general upward trend from 72,135 million US dollars in early 2020 to a peak of 96,822 million US dollars in early 2023. Following this peak, sales declined significantly to 86,206 million in early 2024, and then further to 83,667 million US dollars in early 2025. This indicates a reversal in sales growth beginning in 2023.

MVA Margin

The MVA margin exhibited strong growth overall, starting at 69.1% in 2020 and reaching a high of 181.37% in 2024. In early 2025, despite the decline in both MVA and sales, the margin remained elevated at 166.91%, indicating continued efficient value creation relative to sales, even amid decreasing absolute values.

In summary, the analysis indicates that while the company experienced considerable expansion in market value and sales through early 2023, a decline in adjusted net sales and MVA followed in the subsequent years. Nevertheless, the MVA margin remained robust, suggesting sustained profitability or value generation relative to sales despite recent declines in absolute figures.