Discounted Cash Flow

Lowes Companies Inc.

LOW · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $59.1b $2.5b $-662.0m 4.3% $2.73
2017 $65.0b (10.1%) $3.1b (21.4%) $4.5b (772.2%) 4.8% (10.3%) $3.48 (27.5%)
2018 $68.6b (5.5%) $3.4b (11.5%) $3.9b (-11.4%) 5.0% (5.7%) $4.09 (17.5%)
2019 $71.3b (3.9%) $2.3b (-32.9%) $5.0b (27.3%) 3.2% (-35.4%) $2.84 (-30.6%)
2020 $72.1b (1.2%) $4.3b (85.0%) $2.8b (-44.0%) 5.9% (82.9%) $5.49 (93.3%)
2021 $89.6b (24.2%) $5.8b (36.3%) $9.3b (229.2%) 6.5% (9.8%) $7.77 (41.5%)
2022 $96.2b (7.4%) $8.4b (44.7%) $8.3b (-10.8%) 8.8% (34.7%) $12.07 (55.3%)
2023 $97.1b (0.8%) $6.4b (-23.8%) $6.8b (-18.2%) 6.6% (-24.4%) $10.20 (-15.5%)
2024 $86.4b (-11.0%) $7.7b (20.0%) $6.2b (-8.6%) 8.9% (34.9%) $13.23 (29.7%)
2025 $83.7b (-3.1%) $7.0b (-10.0%) $7.7b (24.6%) 8.3% (-7.0%) $12.25 (-7.4%)
2026 $86.3b (3.1%) $6.7b (-4.4%) $7.7b (-0.6%) 7.7% (-7.3%) $11.87 (-3.1%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model