Home Depot or Lowe's: which stock is cheaper in 2026?
As of October 5, 2026, Home Depot (HD) trades at 19.8× earnings (P/E) and Lowe's (LOW) at 15.3×, according to Kaplio. The median across the 202 consumer cyclicals companies above $2bn in Kaplio's universe is 18.0×. Kaplio's verdict: Home Depot, cheap; Lowe's, cheap. Value range by multiples: $257–$346 for Home Depot and $215–$270 for Lowe's. Against its own value range, Lowe's is the cheaper of the two today.
According to the Kaplio Summary
The same verdict as each company's page: price range by multiples, the four lights, the expected return if consensus is right and what Buffett and Lynch would say today.
| Home Depot (HD) | Lowe's (LOW) | |
|---|---|---|
| Summary valuation | cheap ($257–$346) | cheap ($215–$270) |
| The four lights | Valuation: P/E 19.8× (cheap) Business: 5-year ROIC 28.0 % (excellent) Balance sheet: Net debt/EBITDA 2.6× (solid) Results: 5 of 8 (uneven) | Valuation: P/E 15.3× (cheap) Business: 5-year ROIC 28.6 % (excellent) Balance sheet: Net debt/EBITDA 4.1× (fragile) Results: 8 of 8 (on track) |
| Expected return (per year) | +9.9 % a year (to 2029) | +8.8 % a year (to 2029) |
| Buffett method | outside his circle | outside his circle |
| Lynch method | slow grower · approves | outside his circle |
Metrics side by side
| Metric | Home Depot (HD) | Lowe's (LOW) |
|---|---|---|
| Overview | ||
| Market Cap | $282B | $101B |
| Price | $282.85 | $180.80 |
| Valuation | ||
| P/E | 19.8× | 15.3× |
| P/B | 16.9× | -13.6× |
| P/S | 1.7× | 1.1× |
| EV/EBITDA | 14.3× | 11.5× |
| FCF Yield | 5.4 % | 6.9 % |
| Dividend Yield | 3.3 % | 2.7 % |
| Profitability | ||
| ROIC | 18.8 % | 20.6 % |
| ROE | 102.7 % | -71.8 % |
| Gross Margin | 33.2 % | 33.1 % |
| Operating Margin | 12.4 % | 11.4 % |
| Net Margin | 8.4 % | 7.3 % |
| Growth | ||
| Revenue 5Y CAGR | 4.5 % | -0.8 % |
| EPS 5Y CAGR | 3.6 % | 8.8 % |
| FCF 5Y CAGR | -5.0 % | -3.7 % |
| Balance Sheet | ||
| Net Debt / EBITDA | 2.6× | 4.1× |
| Debt / Equity | 3.8× | -5.7× |
Trailing twelve months where available; otherwise the latest fiscal year. Growth: five-year compound annual rate.