Loblaw Companies Limited

TSX:L Stock Report

Market Cap: CA$53.5b

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.

Discounted Cash Flow
Simply Wall St
CA$129.68
Fair Value
38.6% overvalued intrinsic discount
11
Number of Analysts

Below Fair Value: L (CA$179.75) is trading above our estimate of fair value (CA$129.68)

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 Ratio24.3x
EarningsCA$2.23b
Market CapCA$53.55b

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 Average25.5x
ATD Alimentation Couche-Tard
19.5x11.6%CA$71.4b
WN George Weston
46.2x5.4%CA$27.9b
MRU Metro
21.3x3.3%CA$19.7b
EMP.A Empire
15xn/aCA$9.9b
L Loblaw Companies
24.3x-0.5%CA$53.5b

Price-To-Earnings vs Peers: L is good value based on its Price-To-Earnings Ratio (24.3x) compared to the peer average (25.5x).

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 24.3xIndustry Avg. 21.9xNo. of Companies5PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: L is expensive based on its Price-To-Earnings Ratio (24.3x) compared to the North American Consumer Retailing industry average (21.5x).

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 Ratio24.3x
Fair PE Ratio24x

Price-To-Earnings vs Fair Ratio: L is expensive based on its Price-To-Earnings Ratio (24.3x) compared to the estimated Fair Price-To-Earnings Ratio (24x).

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$179.75
CA$195.00
+8.5%
11.4%CA$225.00CA$135.00n/a11
Jan ’26CA$189.17
CA$195.00
+3.1%
11.4%CA$225.00CA$135.00n/a11
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$117.00CA$189.1710
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
Analyst Price Target
Consensus Narrative from 11 Analysts
CA$195.00
Fair Value
7.8% undervalued intrinsic discount
11
Number of Analysts

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

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/16 07:37
End of Day Share Price 2025/01/16 00:00
Earnings2024/10/05
Annual Earnings2023/12/30

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 here.

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 .

Analyst Sources

Loblaw Companies Limited is covered by 26 analysts. 7 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jim MarroneAccountability Research Corporation
James DurranBarclays
Tamy ChenBMO Capital Markets Equity Research