From modest hardware store to top 50 Fortune 500 company, Lowe’s offers consumers a source for home improvement tools and tips. Here are some recent figures to help investors assess Lowe’s current value and to get an idea of where the company is heading financially.
|What Lowe’s Is Worth|
|Lowe’s Share Price, 52-Week Range||$70.76-$108.98|
|Lowe’s Market Cap, 52-Week Range||$58.4B-$90B|
|GOBankingRates’ Evaluation of
Lowe’s Net Worth
|All information on 52-week range accurate as of June 5, 2018.|
|CEO Robert Niblock’s Salary||$1,300,000 base pay|
Lowe’s Market Cap Range: $58.4B-$90B
Market capitalization considers all of a company’s stock in order to gauge its worth. The higher the cap, the more value investors associate with the company. Lowe’s comparably narrow market cap means stability, but it is also telling of a lukewarm business strategy; although revenue for the company has increased in recent years, so have operating costs, but without the gain investors might have been expecting.
Lowe’s Net Worth: $53.1B
Although market cap gives you a sense of what the market values a company at, the number is based on market sentiment, which, in turn, is based on a multitude of consumer variables and market players.
The GOBankingRates Evaluation of a company’s net worth, however, only considers figures like assets and revenue, taking into account only full-year profits and revenue from the last three years and the company’s net income.
Based on Lowe’s revenue and profits from the last three years, Lowe’s is worth just $53.1 billion.
Check Out: Lowe’s Store Credit Card Review
Lowe’s nabbed a spot at No. 78 on Forbes’ 2018 list of the world’s most valuable brands with a market cap of $71.1 billion as of May 2017 — its rival Home Depot was No. 33 — and its market cap jumped to $80.22 billion in 2018, according to MarketWatch.
Investors might want to keep an eye on Lowe’s as it prepares for new leadership: Marvin Ellison, currently CEO of J.C. Penney Co. Inc., is slated to replace Niblock in July 2018 as Lowe’s new president and CEO. Whether the change will positively or negatively impact the company’s bottom line is yet to be seen.
Lowe’s History and Current Investors
H. Carl Buchan purchased the company from his brother-in-law, James Lowe. Buchan, anticipating America’s need for reconstruction following World War II, sold hardware, appliances and building materials. Since its founding in 1946, the company has grown to operate more than 2,390 home improvement and hardware stores and employ more than 310,000 people as of 2018. Today, the hardware retail chain touts itself as the world’s second-largest home improvement retailer.
Some of the largest U.S. banks, including JPMorgan Chase & Co. and Wells Fargo & Co., hold tens of millions of shares with Lowe’s. Lowe’s biggest shareholder is investment titan The Vanguard Group Inc., with more than 65,000,000 shares.
Methodology: The GOBankingRates Evaluation assesses a company’s net worth based on the company’s total assets, total liabilities, and revenue and net income from the last three years. Base value is established by subtracting total liabilities from total assets from the company’s last full fiscal year. Income value is established by taking the average of the revenue from the last three full fiscal years, 10 times the average of the net profits from the last three full fiscal years, and then calculating the average of those two figures. The final GOBankingRates Evaluation number is the sum of the base value and the income value.
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