Update shared on20 Aug 2025
Fair value Decreased 75%Despite virtually unchanged future P/E and discount rate metrics, the consensus analyst price target for Loblaw Companies has been drastically reduced from CA$236.00 to CA$59.00.
What's in the News
- Loblaw Companies announced a 4-for-1 stock split effective August 2025.
- The company is installing Canada's largest rooftop solar system (7.5 MW) at its East Gwillimbury Distribution Centre, expected to supply 25% of the site’s power needs.
- Loblaw repurchased a total of 2,052,205 shares between March and July 2025 under its ongoing buyback programs, representing 0.69% of shares and totaling CAD 445 million.
- Quarterly dividend declared at CAD 0.1411 per share.
- Loblaw launched a partnership with DoorDash enabling PC Optimum members to earn points on eligible DoorDash orders from Loblaw-banner stores and restaurants, with substantial bonus offers for new and existing customers.
Valuation Changes
Summary of Valuation Changes for Loblaw Companies
- The Consensus Analyst Price Target has significantly fallen from CA$236.00 to CA$59.00.
- The Future P/E for Loblaw Companies remained effectively unchanged, moving only marginally from 34.17x to 34.53x.
- The Discount Rate for Loblaw Companies remained effectively unchanged, at 6.33%.
Disclaimer
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