Sprouts Farmers Market Valuation

Q: What is the Fair Price of S2FM34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

S2FM34 (R$283.37) is trading above our estimate of [[fair value]] (R$214.94)

Is S2FM34 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of S2FM34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: S2FM34 (R$283.37) is trading above our estimate of fair value (R$214.94)

Significantly Below Fair Value: S2FM34 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for S2FM34?

Key metric: As S2FM34 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for S2FM34. This is calculated by dividing S2FM34's market cap by their current earnings.
What is S2FM34's PE Ratio?
PE Ratio	41.9x
Earnings	US$351.05m
Market Cap	US$14.71b

S2FM34 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.2x
Enterprise Value/EBITDA	26.4x
PEG Ratio	3.6x

Price to Earnings Ratio vs Peers

How does S2FM34's PE Ratio compare to its peers?

The above table shows the PE ratio for S2FM34 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	23.8x
RADL3 Raia Drogasil	40.2x	24.8%	R$44.6b
GMAT3 Grupo Mateus	12.1x	15.9%	R$16.0b
MRU Metro	21.5x	4.4%	CA$19.9b
COL Coles Group	21.4x	5.8%	AU$24.2b
S2FM34 Sprouts Farmers Market	41.9x	11.7%	R$14.7b

Price-To-Earnings vs Peers: S2FM34 is expensive based on its Price-To-Earnings Ratio (41.9x) compared to the peer average (23.8x).

Price to Earnings Ratio vs Industry

How does S2FM34's PE Ratio compare vs other companies in the South American Consumer Retailing Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: S2FM34 is expensive based on its Price-To-Earnings Ratio (41.9x) compared to the South American Consumer Retailing industry average (15.4x).

Price to Earnings Ratio vs Fair Ratio

What is S2FM34'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.

S2FM34 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	41.9x
Fair PE Ratio	23.7x

Price-To-Earnings vs Fair Ratio: S2FM34 is expensive based on its Price-To-Earnings Ratio (41.9x) compared to the estimated Fair Price-To-Earnings Ratio (23.7x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.