We’ve recently updated our valuation analysis.

Loblaw Companies Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

L 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/Revenue1x
Enterprise Value/EBITDA11.8x
PEG Ratio17.5x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average14.7x
WN George Weston
10.4x-3.4%CA$24.1b
ATD Alimentation Couche-Tard
15.7x5.1%CA$60.6b
MRU Metro
19.5x4.8%CA$17.0b
EMP.A Empire
13xn/aCA$9.9b
L Loblaw Companies
18.2x1.0%CA$38.6b

Price-To-Earnings vs Peers: L is expensive based on its Price-To-Earnings Ratio (18.2x) compared to the peer average (14.7x).


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
Industry Avg.n/a3.0%
n/an/an/a

Price-To-Earnings vs Industry: L is good value based on its Price-To-Earnings Ratio (18.2x) compared to the North American Consumer Retailing industry average (18.6x)


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 Ratio18.2x
Fair PE Ratio15.8x

Price-To-Earnings vs Fair Ratio: L is expensive based on its Price-To-Earnings Ratio (18.2x) compared to the estimated Fair Price-To-Earnings Ratio (15.8x).


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$119.2) is trading below our estimate of fair value (CA$179.65)

Significantly Below Fair Value: L is trading below fair value by more than 20%.


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$119.20
CA$132.95
+11.5%
11.8%CA$165.00CA$97.00n/a11
Jan ’24CA$119.72
CA$132.50
+10.7%
11.2%CA$160.00CA$97.00n/a11
Dec ’23CA$121.53
CA$130.68
+7.5%
12.8%CA$160.00CA$90.00n/a11
Nov ’23CA$112.16
CA$126.91
+13.2%
11.2%CA$154.00CA$90.00n/a11
Oct ’23CA$109.38
CA$126.36
+15.5%
11.5%CA$154.00CA$90.00n/a11
Sep ’23CA$117.14
CA$126.36
+7.9%
11.5%CA$154.00CA$90.00n/a11
Aug ’23CA$116.57
CA$125.55
+7.7%
12.2%CA$154.00CA$86.00n/a11
Jul ’23CA$116.09
CA$119.82
+3.2%
9.9%CA$133.00CA$86.00n/a11
Jun ’23CA$113.32
CA$119.82
+5.7%
9.9%CA$133.00CA$86.00n/a11
May ’23CA$117.51
CA$116.18
-1.1%
9.9%CA$133.00CA$86.00n/a11
Apr ’23CA$110.88
CA$114.00
+2.8%
8.6%CA$125.00CA$86.00n/a11
Mar ’23CA$98.02
CA$110.82
+13.1%
8.6%CA$120.00CA$83.00n/a11
Feb ’23CA$97.60
CA$104.08
+6.6%
10.3%CA$118.00CA$83.00CA$119.2012
Jan ’23CA$103.64
CA$103.00
-0.6%
9.6%CA$118.00CA$83.00CA$119.7212
Dec ’22CA$95.58
CA$103.00
+7.8%
9.6%CA$118.00CA$83.00CA$121.5312
Nov ’22CA$93.19
CA$90.67
-2.7%
7.2%CA$104.00CA$80.00CA$112.1612
Oct ’22CA$86.45
CA$90.58
+4.8%
7.2%CA$104.00CA$80.00CA$109.3812
Sep ’22CA$89.11
CA$90.33
+1.4%
6.9%CA$104.00CA$80.00CA$117.1412
Aug ’22CA$84.40
CA$88.67
+5.1%
8.6%CA$104.00CA$74.00CA$116.5712
Jul ’22CA$76.29
CA$79.42
+4.1%
8.6%CA$96.00CA$71.00CA$116.0912
Jun ’22CA$74.93
CA$79.33
+5.9%
8.7%CA$96.00CA$71.00CA$113.3212
May ’22CA$68.25
CA$76.83
+12.6%
8.0%CA$94.00CA$71.00CA$117.5112
Apr ’22CA$70.36
CA$75.33
+7.1%
8.2%CA$91.00CA$69.00CA$110.8812
Mar ’22CA$61.74
CA$75.33
+22.0%
8.2%CA$91.00CA$69.00CA$98.0212
Feb ’22CA$63.02
CA$77.17
+22.4%
9.4%CA$95.00CA$70.00CA$97.6012

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


Discover undervalued companies