{"id":66,"date":"2015-12-21T08:49:11","date_gmt":"2015-12-21T13:49:11","guid":{"rendered":"https:\/\/www.stockcalc.com\/blog\/BrianD\/?p=66"},"modified":"2015-12-21T08:59:35","modified_gmt":"2015-12-21T13:59:35","slug":"lowes-companies-inc-low-fundamental-valuation-using-analyst-forecast-data","status":"publish","type":"post","link":"https:\/\/www.stockcalc.com\/blog\/BrianD\/2015\/12\/21\/lowes-companies-inc-low-fundamental-valuation-using-analyst-forecast-data\/","title":{"rendered":"Lowes Companies Inc. (LOW) Fundamental Valuation using Analyst Forecast Data"},"content":{"rendered":"

I used the Stockcalc website (www.stockcalc.com<\/a>) to run a fundamental analysis for Lowes Companies (LOW:NYS)<\/p>\n

Process:
\nI ran a Weighted Average Cost of Capital with the\u00a0WACC Tool
\nI loaded the Analyst Estimate Data and used it to generate an Income Statement Forecast for 2016 to 2018
\nI then ran a Discounted Cash Flow with that Data.<\/p>\n

The following screens show the steps:<\/p>\n

Calculation of WACC for LOW:NYS<\/p>\n

\"Lowes<\/a>
The weighted average cost of capital for Lowes Companies (LOW:NYS)<\/figcaption><\/figure>\n

This resulted in a WACC value of 8.78 for Lowes Companies Inc.<\/p>\n

Next I loaded the Analyst Estimate Data and used it to generate an Income Statement Forecast for 2016 to 2018<\/p>\n

\"LOW<\/a>
Average Analyst Estimates for Lowes Companies Inc. (LOW:NYS)<\/figcaption><\/figure>\n

 <\/p>\n

\"LOW:NYS<\/a>
Income Statement Forecast for Lowes Companies Inc. (LOW:NYS)<\/figcaption><\/figure>\n

 <\/p>\n

I then loaded\u00a0a\u00a0Discounted Cash Flow using\u00a0the above inputs<\/p>\n

\"LOW:NYS<\/a>
Discounted Cash Flow Analysis for Lowes Companies (LOW:NYS)<\/figcaption><\/figure>\n

Note – Stockcalc provides default or historic values to generate the initial valuation calculation- the user can then adjust based on their expectations:<\/p>\n

Adjustments:
\nThe cash flow values were taken directly from the Analyst estimates. \u00a0I\u00a0reviewed the historic Capex figures and adjusted the ongoing Capital Expenditures to 0.9 billion from an average of 1.2 billion last 5 years based predominately on the last 2 years figures of 0.9 and 0.8 billion. \u00a0I also adjusted the terminal growth rate from the default of 3.0 to 3.4 given the Analyst projection for the next 3 years are 11% growth in EBITDA. These 2 adjustments resulted in a value of $74 per share. \u00a0I am not aware if there are redundant assets that would add to \u00a0company value.<\/p>\n

The Analyst Mean Target Price for 2017 is\u00a0$80.86. \u00a0This can be seen on the Average Analyst Estimates above. \u00a0To achieve that value I would need to increase the terminal value to 4.0 % per year in the discounted cash flow model.<\/p>\n

Company Information:
\nLowe’s Companies Inc. was incorporated in North Carolina in 1952 and has been publicly held since 1961. It is a Fortune(r) 100 company and a home improvement retailer. As of January 31, 2014, Lowe’s operated 1,832 home improvement and hardware stores in the United States, Canada and Mexico representing approximately 200 million square feet of retail selling space. The Company serves homeowners, renters and commercial business customers (Pro customer).<\/p>\n

About Stockcalc:
\n<\/strong>If you would like\u00a0to explore the Stockcalc w<\/a>ebsite\u00a0and quickly run\u00a0valuations like \u00a0simply create an account at www.stockcalc.com<\/a>\u00a0.\u00a0 Use the walk-throughs (click the walking man icon), videos (video icon on each page) or the help menu to help navigate the site. The site has a number of tools for data query, backtesting, forecasting and valuation. \u00a0We have a no restrictions 14 day free trial available. If you would like the above valuation to test simply send us a note from Stockcalc’s “Contact Us” on the dashboard.<\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

I used the Stockcalc website (www.stockcalc.com) to run a fundamental analysis for Lowes Companies (LOW:NYS) Process: I ran a Weighted Average Cost of Capital with the\u00a0WACC Tool I loaded the Analyst Estimate Data and used it to generate an Income Statement Forecast for 2016 to 2018 I then ran a Discounted Cash Flow with that … Continue reading Lowes Companies Inc. (LOW) Fundamental Valuation using Analyst Forecast Data<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,3],"tags":[10,12,11,13,14],"class_list":["post-66","post","type-post","status-publish","format-standard","hentry","category-uncategorized","category-valuation","tag-low","tag-lowes","tag-lowes-companies","tag-lowes-companies-inc","tag-lowes-valuation"],"jetpack_featured_media_url":"","jetpack_likes_enabled":true,"jetpack-related-posts":[],"jetpack_shortlink":"https:\/\/wp.me\/p6Fvkg-14","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.stockcalc.com\/blog\/BrianD\/wp-json\/wp\/v2\/posts\/66","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.stockcalc.com\/blog\/BrianD\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.stockcalc.com\/blog\/BrianD\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.stockcalc.com\/blog\/BrianD\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.stockcalc.com\/blog\/BrianD\/wp-json\/wp\/v2\/comments?post=66"}],"version-history":[{"count":20,"href":"https:\/\/www.stockcalc.com\/blog\/BrianD\/wp-json\/wp\/v2\/posts\/66\/revisions"}],"predecessor-version":[{"id":96,"href":"https:\/\/www.stockcalc.com\/blog\/BrianD\/wp-json\/wp\/v2\/posts\/66\/revisions\/96"}],"wp:attachment":[{"href":"https:\/\/www.stockcalc.com\/blog\/BrianD\/wp-json\/wp\/v2\/media?parent=66"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.stockcalc.com\/blog\/BrianD\/wp-json\/wp\/v2\/categories?post=66"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.stockcalc.com\/blog\/BrianD\/wp-json\/wp\/v2\/tags?post=66"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}