Kroger Valuation

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

KR * (MX$1160) is trading below our estimate of [[fair value]] (MX$1577.53)

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: KR * (MX$1160) is trading below our estimate of fair value (MX$1577.53)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for KR *. This is calculated by dividing KR *'s market cap by their current earnings.
What is KR *'s PE Ratio?
PE Ratio	15.1x
Earnings	US$2.77b
Market Cap	US$42.01b

KR * 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	0.4x
Enterprise Value/EBITDA	7.3x
PEG Ratio	3.2x

Price to Earnings Ratio vs Peers

How does KR *'s PE Ratio compare to its peers?

The above table shows the PE ratio for KR * 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	18.6x
CHDRAUI B Grupo Comercial Chedraui. de	15.9x	13.0%	Mex$122.8b
LACOMER UBC La Comer. de	16.6x	11.2%	Mex$39.1b
WALMEX * Wal-Mart de México. de	17.9x	9.6%	Mex$959.9b
L Loblaw Companies	24.1x	-0.9%	CA$55.0b
KR * Kroger	15.1x	4.7%	Mex$42.0b

Price-To-Earnings vs Peers: KR * is good value based on its Price-To-Earnings Ratio (15.1x) compared to the peer average (18.6x).

Price to Earnings Ratio vs Industry

How does KR *'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: KR * is good value based on its Price-To-Earnings Ratio (15.1x) compared to the South American Consumer Retailing industry average (15.6x).

Price to Earnings Ratio vs Fair Ratio

What is KR *'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.

KR * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	15.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate KR *'s Price-To-Earnings Fair Ratio for valuation analysis.

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 KR * forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	n/a	Mex$1,208.87 0%	7.6%	Mex$1,427.20	Mex$1,060.21	n/a	20
Nov ’25	Mex$1,160.00	Mex$1,170.88 +0.9%	7.5%	Mex$1,391.74	Mex$1,033.86	n/a	20
Oct ’25	Mex$1,100.00	Mex$1,135.59 +3.2%	8.5%	Mex$1,359.02	Mex$931.90	n/a	20
Sep ’25	Mex$995.00	Mex$1,140.98 +14.7%	8.6%	Mex$1,374.77	Mex$942.70	n/a	19
Aug ’25	Mex$990.00	Mex$1,041.15 +5.2%	8.6%	Mex$1,255.62	Mex$861.00	n/a	19
Jul ’25	Mex$917.00	Mex$1,053.25 +14.9%	8.6%	Mex$1,269.80	Mex$870.72	n/a	19
Jun ’25	Mex$880.00	Mex$979.16 +11.3%	8.8%	Mex$1,181.57	Mex$810.22	n/a	20
May ’25	Mex$955.00	Mex$992.67 +3.9%	8.7%	Mex$1,193.66	Mex$818.51	n/a	21
Apr ’25	n/a	Mex$972.08 0%	7.8%	Mex$1,163.69	Mex$831.21	n/a	20
Mar ’25	Mex$830.00	Mex$880.21 +6.0%	8.8%	Mex$1,109.33	Mex$785.06	n/a	20
Feb ’25	Mex$735.79	Mex$871.23 +18.4%	10.1%	Mex$1,115.32	Mex$720.67	n/a	20
Jan ’25	n/a	Mex$876.79 0%	10.0%	Mex$1,115.91	Mex$721.05	n/a	21
Dec ’24	Mex$760.51	Mex$875.76 +15.2%	10.2%	Mex$1,117.81	Mex$722.27	n/a	20
Nov ’24	Mex$816.29	Mex$930.21 +14.0%	9.8%	Mex$1,173.48	Mex$758.25	Mex$1,160.00	20
Oct ’24	Mex$782.00	Mex$898.39 +14.9%	9.8%	Mex$1,131.15	Mex$730.90	Mex$1,100.00	20
Sep ’24	Mex$780.00	Mex$865.74 +11.0%	9.8%	Mex$1,089.09	Mex$703.72	Mex$995.00	20
Aug ’24	Mex$815.00	Mex$870.21 +6.8%	9.3%	Mex$1,088.39	Mex$703.26	Mex$990.00	20
Jul ’24	Mex$801.00	Mex$889.42 +11.0%	9.3%	Mex$1,113.49	Mex$719.49	Mex$917.00	20
Jun ’24	Mex$780.09	Mex$941.38 +20.7%	12.0%	Mex$1,327.66	Mex$743.49	Mex$880.00	19
May ’24	n/a	Mex$954.00 0%	11.9%	Mex$1,348.22	Mex$755.00	Mex$955.00	20
Apr ’24	n/a	Mex$958.91 0%	12.1%	Mex$1,356.95	Mex$759.89	n/a	20
Mar ’24	Mex$799.00	Mex$967.16 +21.0%	13.6%	Mex$1,378.21	Mex$771.80	Mex$830.00	19
Feb ’24	n/a	Mex$989.36 0%	13.6%	Mex$1,396.58	Mex$782.08	Mex$735.79	19
Jan ’24	n/a	Mex$1,059.03 0%	13.4%	Mex$1,485.40	Mex$871.43	n/a	18
Dec ’23	Mex$942.00	Mex$1,025.43 +8.9%	14.8%	Mex$1,436.68	Mex$823.70	Mex$760.51	16
Nov ’23	Mex$932.31	Mex$1,067.06 +14.5%	14.5%	Mex$1,486.08	Mex$852.02	Mex$816.29	17

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