Sprouts Farmers Market, Inc.

NasdaqGS:SFM Stock Report

Market Cap: US$8.1b

Sprouts Farmers Market Valuation

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

Below Fair Value: SFM ($82.7) is trading above our estimate of fair value ($48.51)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SFM 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/Revenue1.4x
Enterprise Value/EBITDA17.6x
PEG Ratio4.9x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SFM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.8x
ACI Albertsons Companies
8.8x3.5%US$11.2b
CASY Casey's General Stores
27.8x6.4%US$13.5b
GO Grocery Outlet Holding
32.6x17.2%US$2.1b
KR Kroger
17.8x9.4%US$38.2b
SFM Sprouts Farmers Market
28x5.7%US$8.1b

Price-To-Earnings vs Peers: SFM is expensive based on its Price-To-Earnings Ratio (28x) compared to the peer average (21.8x).


Price to Earnings Ratio vs Industry

How does SFM's PE Ratio compare vs other companies in the US Consumer Retailing Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: SFM is expensive based on its Price-To-Earnings Ratio (28x) compared to the US Consumer Retailing industry average (21.3x).


Price to Earnings Ratio vs Fair Ratio

What is SFM'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.

SFM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28x
Fair PE Ratio16.3x

Price-To-Earnings vs Fair Ratio: SFM is expensive based on its Price-To-Earnings Ratio (28x) compared to the estimated Fair Price-To-Earnings Ratio (16.3x).


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 SFM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$82.70
US$71.10
-14.0%
21.7%US$94.00US$40.00n/a10
Jul ’25US$83.57
US$70.00
-16.2%
20.7%US$94.00US$40.00n/a10
Jun ’25US$78.98
US$66.09
-16.3%
16.4%US$84.00US$40.00n/a11
May ’25US$64.29
US$58.24
-9.4%
20.9%US$80.00US$31.00n/a12
Apr ’25US$63.61
US$56.09
-11.8%
19.5%US$71.00US$31.00n/a11
Mar ’25US$63.39
US$53.73
-15.2%
17.8%US$70.00US$31.00n/a11
Feb ’25US$51.60
US$40.91
-20.7%
16.4%US$49.00US$26.00n/a11
Jan ’25US$48.11
US$39.18
-18.6%
16.7%US$49.00US$26.00n/a11
Dec ’24US$43.92
US$37.91
-13.7%
15.2%US$45.00US$26.00n/a11
Nov ’24US$40.57
US$37.73
-7.0%
15.3%US$45.00US$26.00n/a11
Oct ’24US$42.80
US$35.73
-16.5%
13.2%US$43.00US$26.00n/a11
Sep ’24US$39.37
US$35.50
-9.8%
13.0%US$43.00US$26.00n/a12
Aug ’24US$38.26
US$35.33
-7.6%
12.6%US$42.00US$26.00n/a12
Jul ’24US$36.73
US$35.25
-4.0%
14.3%US$45.00US$26.00US$83.5712
Jun ’24US$32.78
US$35.12
+7.1%
13.8%US$45.00US$26.00US$78.9813
May ’24US$35.02
US$32.85
-6.2%
14.2%US$40.00US$25.00US$64.2913
Apr ’24US$35.03
US$33.08
-5.6%
14.5%US$40.00US$25.00US$63.6112
Mar ’24US$30.80
US$31.81
+3.3%
14.7%US$38.00US$21.00US$63.3913
Feb ’24US$32.06
US$31.81
-0.8%
14.7%US$38.00US$21.00US$51.6013
Jan ’24US$32.37
US$31.73
-2.0%
14.8%US$38.00US$21.00US$48.1113
Dec ’23US$34.11
US$31.35
-8.1%
14.8%US$38.00US$21.00US$43.9213
Nov ’23US$28.73
US$29.11
+1.3%
16.6%US$38.00US$21.00US$40.5714
Oct ’23US$27.75
US$29.04
+4.6%
16.9%US$38.00US$21.00US$42.8014
Sep ’23US$29.08
US$28.61
-1.6%
16.8%US$38.00US$21.00US$39.3714
Aug ’23US$27.55
US$28.07
+1.9%
16.8%US$37.00US$20.00US$38.2614
Jul ’23US$25.72
US$28.00
+8.9%
16.8%US$37.00US$20.00US$36.7315

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


Discover undervalued companies

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.