Lowe’s Cos. Inc., FCFE calculation

US$ in millions

12 months ended:	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019
Net earnings	7,726)	6,437)	8,442)	5,835)	4,281)	2,314)
Net noncash charges	2,642)	5,034)	2,798)	3,319)	2,270)	3,112)
Changes in operating assets and liabilities	(2,228)	(2,882)	(1,127)	1,895)	(2,255)	767)
Net cash provided by operating activities	8,140)	8,589)	10,113)	11,049)	4,296)	6,193)
Capital expenditures	(1,964)	(1,829)	(1,853)	(1,791)	(1,484)	(1,174)
Net change in commercial paper	(499)	499)	—)	(941)	220)	(415)
Net proceeds from issuance of debt	2,983)	9,667)	4,972)	7,929)	3,972)	—)
Repayment of debt	(601)	(867)	(2,118)	(5,618)	(1,113)	(326)
Free cash flow to equity (FCFE)	8,059)	16,059)	11,114)	10,628)	5,891)	4,278)

Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Lowe’s Cos. Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Lowe’s Cos. Inc. FCFE increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Lowe’s Cos. Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	564,650,005
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	8,059)
FCFE per share	14.27
Current share price (P)	247.72
Valuation Ratio
P/FCFE	17.36
Benchmarks
P/FCFE, Competitors¹
Amazon.com Inc.	111.53
Home Depot Inc.	20.89
TJX Cos. Inc.	35.76
P/FCFE, Sector
Consumer Discretionary Distribution & Retail	55.33
P/FCFE, Industry
Consumer Discretionary	41.96

Based on: 10-K (reporting date: 2024-02-02).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Lowe’s Cos. Inc., historical P/FCFE calculation, comparison to benchmarks

	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019
No. shares of common stock outstanding¹	572,184,243	596,356,261	661,561,297	717,256,852	754,948,648	795,922,717
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	8,059)	16,059)	11,114)	10,628)	5,891)	4,278)
FCFE per share³	14.08	26.93	16.80	14.82	7.80	5.37
Share price^1, 4	254.00	190.53	227.60	181.89	67.80	109.91
Valuation Ratio
P/FCFE⁵	18.03	7.08	13.55	12.28	8.69	20.45
Benchmarks
P/FCFE, Competitors⁶
Amazon.com Inc.	—	84.16	240.95	—	55.66	63.35
Home Depot Inc.	20.12	19.60	19.87	15.41	14.99	16.61
TJX Cos. Inc.	28.74	33.59	—	10.55	19.71	21.79
P/FCFE, Sector
Consumer Discretionary Distribution & Retail	—	41.58	51.89	59.10	38.09	38.19
P/FCFE, Industry
Consumer Discretionary	—	30.84	36.19	82.92	32.04	28.99

Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 8,059,000,000 ÷ 572,184,243 = 14.08

⁴ Closing price as at the filing date of Lowe’s Cos. Inc. Annual Report.

⁵ 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 254.00 ÷ 14.08 = 18.03

⁶ Click competitor name to see calculations.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Lowe’s Cos. Inc. P/FCFE ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Lowe’s Cos. Inc. (NYSE:LOW)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical