Coles Group Limited

ASX:COL Stock Report

Market Cap: AU$27.9b

Coles Group Valuation

Is COL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

What is the Fair Price of COL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: COL (A$21.41) is trading below our estimate of future cash flow value (A$24.24)

Significantly Below Future Cash Flow Value: COL is trading below future cash flow value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for COL?

Key metric: As COL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for COL. This is calculated by dividing COL's market cap by their current earnings.
What is COL's PE Ratio?
PE Ratio28.3x
EarningsAU$1.01b
Market CapAU$27.91b

Price to Earnings Ratio vs Peers

How does COL's PE Ratio compare to its peers?

The above table shows the PE ratio for COL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.1x
WOW Woolworths Group
69.9x26.92%AU$40.3b
EDV Endeavour Group
14.8x9.11%AU$5.4b
MTS Metcash
11.6x4.09%AU$3.2b
WN George Weston
35.9x8.88%CA$35.9b
COL Coles Group
28.3x11.16%AU$28.7b

Price-To-Earnings vs Peers: COL is good value based on its Price-To-Earnings Ratio (28.3x) compared to the peer average (33.1x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does COL's PE Ratio compare vs other companies in the Global Consumer Retailing Industry?

9 CompaniesPrice / EarningsEstimated GrowthMarket Cap
COL 28.3xIndustry Avg. 16.6xNo. of Companies56PE01224364860+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: COL is expensive based on its Price-To-Earnings Ratio (28.3x) compared to the Global Consumer Retailing industry average (16.6x).

Price to Earnings Ratio vs Fair Ratio

What is COL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

COL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28.3x
Fair PE Ratio26.1x

Price-To-Earnings vs Fair Ratio: COL is expensive based on its Price-To-Earnings Ratio (28.3x) compared to the estimated Fair Price-To-Earnings Ratio (26.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst COL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$21.41
AU$23.24
+8.57%
8.79%AU$25.50AU$16.50n/a16
May ’27AU$22.92
AU$23.15
+1.00%
8.81%AU$25.50AU$16.50n/a16
Apr ’27AU$22.05
AU$22.75
+3.19%
7.94%AU$24.90AU$16.50n/a16
Mar ’27AU$20.56
AU$22.72
+10.51%
7.91%AU$24.90AU$16.50n/a16
Feb ’27AU$21.28
AU$23.40
+9.96%
9.36%AU$25.50AU$16.50n/a16
Jan ’27AU$21.44
AU$23.56
+9.89%
10.49%AU$26.60AU$16.50n/a15
Dec ’26AU$22.20
AU$23.56
+6.13%
10.49%AU$26.60AU$16.50n/a15
Nov ’26AU$22.05
AU$23.56
+6.85%
10.49%AU$26.60AU$16.50n/a15
Oct ’26AU$23.26
AU$23.61
+1.50%
10.49%AU$26.80AU$16.50n/a15
Sep ’26AU$24.08
AU$23.41
-2.79%
9.94%AU$26.10AU$16.50n/a15
Aug ’26AU$20.55
AU$21.49
+4.59%
9.72%AU$24.10AU$15.50n/a15
Jul ’26AU$20.88
AU$21.31
+2.06%
9.56%AU$23.90AU$15.50n/a15
Jun ’26AU$21.60
AU$21.17
-2.01%
9.68%AU$23.90AU$15.50n/a16
May ’26AU$21.49
AU$21.17
-1.51%
9.68%AU$23.90AU$15.50AU$22.9216
Apr ’26AU$19.88
AU$20.68
+4.04%
8.94%AU$23.60AU$15.50AU$22.0516
Mar ’26AU$19.98
AU$20.42
+2.23%
9.37%AU$23.60AU$15.50AU$20.5615
Feb ’26AU$19.50
AU$19.06
-2.27%
8.24%AU$21.00AU$15.50AU$21.2815
Jan ’26AU$18.89
AU$18.61
-1.48%
8.15%AU$21.00AU$15.50AU$21.4415
Dec ’25AU$18.59
AU$18.64
+0.29%
8.07%AU$21.00AU$15.50AU$22.2015
Nov ’25AU$17.61
AU$18.68
+6.06%
8.19%AU$21.00AU$15.50AU$22.0515
Oct ’25AU$18.16
AU$19.00
+4.65%
8.62%AU$21.55AU$15.50AU$23.2615
Sep ’25AU$18.79
AU$18.85
+0.30%
8.51%AU$21.00AU$15.50AU$24.0815
Aug ’25AU$18.21
AU$17.84
-2.01%
7.22%AU$19.50AU$15.00AU$20.5515
Jul ’25AU$16.99
AU$17.36
+2.17%
6.39%AU$19.00AU$15.00AU$20.8815
Jun ’25AU$16.42
AU$17.23
+4.91%
6.54%AU$19.00AU$15.00AU$21.6015
May ’25AU$16.40
AU$17.17
+4.67%
6.97%AU$19.00AU$15.00AU$21.4915
AU$23.24
Fair Value
7.9% undervalued intrinsic discount
16
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/05/19 13:26
End of Day Share Price 2026/05/19 00:00
Earnings2026/01/04
Annual Earnings2025/06/29

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Coles Group Limited is covered by 21 analysts. 15 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Thomas KierathBarrenjoey Markets Pty Limited
Jonathan SnapeBell Potter
David ErringtonBofA Global Research