Loblaw Companies Limited

TSX:L Stock Report

Market Cap: CA$58.8b

Loblaw Companies Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • 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 L when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: L (CA$192.14) is trading above our estimate of fair value (CA$131.19)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for L. This is calculated by dividing L's market cap by their current earnings.
What is L's PE Ratio?
PE Ratio26x
EarningsCA$2.23b
Market CapCA$58.85b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for L vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.2x
ATD Alimentation Couche-Tard
20.8x11.6%CA$76.2b
WN George Weston
49.8x6.8%CA$30.7b
MRU Metro
22.3x3.7%CA$20.7b
EMP.A Empire
15.9xn/aCA$10.6b
L Loblaw Companies
26x-0.9%CA$58.8b

Price-To-Earnings vs Peers: L is good value based on its Price-To-Earnings Ratio (26x) compared to the peer average (26.8x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
L 26.0xIndustry Avg. 22.7xNo. of Companies6PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: L is expensive based on its Price-To-Earnings Ratio (26x) compared to the North American Consumer Retailing industry average (22.7x).

Price to Earnings Ratio vs Fair Ratio

What is L'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.

L PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26x
Fair PE Ratio21.4x

Price-To-Earnings vs Fair Ratio: L is expensive based on its Price-To-Earnings Ratio (26x) compared to the estimated Fair Price-To-Earnings Ratio (21.4x).

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 L forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$192.14
CA$192.00
-0.07%
11.0%CA$217.00CA$135.00n/a10
Dec ’25CA$181.70
CA$190.80
+5.0%
10.5%CA$206.00CA$135.00n/a10
Nov ’25CA$177.41
CA$180.60
+1.8%
9.2%CA$200.00CA$135.00n/a10
Oct ’25CA$179.44
CA$177.00
-1.4%
9.0%CA$190.00CA$135.00n/a9
Sep ’25CA$175.88
CA$175.22
-0.4%
9.7%CA$189.00CA$129.00n/a9
Aug ’25CA$168.27
CA$175.22
+4.1%
9.7%CA$189.00CA$129.00n/a9
Jul ’25CA$158.70
CA$161.22
+1.6%
8.7%CA$183.00CA$129.00n/a9
Jun ’25CA$158.30
CA$160.67
+1.5%
9.5%CA$183.00CA$124.00n/a9
May ’25CA$152.84
CA$158.20
+3.5%
8.8%CA$183.00CA$124.00n/a10
Apr ’25CA$150.52
CA$152.60
+1.4%
8.4%CA$172.00CA$124.00n/a10
Mar ’25CA$145.13
CA$151.10
+4.1%
9.0%CA$172.00CA$117.00n/a10
Feb ’25CA$135.87
CA$141.60
+4.2%
9.9%CA$172.00CA$117.00n/a10
Jan ’25CA$128.28
CA$138.70
+8.1%
9.8%CA$170.00CA$117.00n/a10
Dec ’24CA$118.19
CA$138.70
+17.4%
9.8%CA$170.00CA$117.00CA$181.7010
Nov ’24CA$115.20
CA$138.30
+20.1%
9.8%CA$169.00CA$117.00CA$177.4110
Oct ’24CA$115.40
CA$137.80
+19.4%
10.4%CA$169.00CA$112.00CA$179.4410
Sep ’24CA$118.57
CA$137.80
+16.2%
10.4%CA$169.00CA$112.00CA$175.8810
Aug ’24CA$116.14
CA$138.00
+18.8%
10.8%CA$169.00CA$109.00CA$168.2710
Jul ’24CA$121.28
CA$137.55
+13.4%
10.4%CA$168.00CA$109.00CA$158.7010
Jun ’24CA$117.81
CA$137.55
+16.8%
10.4%CA$168.00CA$109.00CA$158.3010
May ’24CA$128.50
CA$137.25
+6.8%
10.9%CA$168.00CA$106.00CA$152.8410
Apr ’24CA$123.17
CA$137.05
+11.3%
10.5%CA$168.00CA$106.00CA$150.5211
Mar ’24CA$117.23
CA$136.23
+16.2%
11.9%CA$168.00CA$97.00CA$145.1311
Feb ’24CA$115.49
CA$132.95
+15.1%
11.8%CA$165.00CA$97.00CA$135.8711
Jan ’24CA$119.72
CA$132.50
+10.7%
11.2%CA$160.00CA$97.00CA$128.2811
Dec ’23CA$121.53
CA$130.68
+7.5%
12.8%CA$160.00CA$90.00CA$118.1911

Analyst Forecast: Target price is lower than the current share price.

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