Sprouts Farmers Market, Inc.

NasdaqGS:SFM Stock Report

Market Cap: US$14.3b

Sprouts Farmers Market Valuation

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

Below Fair Value: SFM ($142.75) is trading below our estimate of fair value ($156.89)

Significantly Below Fair Value: SFM is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SFM. This is calculated by dividing SFM's market cap by their current earnings.
What is SFM's PE Ratio?
PE Ratio40.7x
EarningsUS$351.05m
Market CapUS$14.34b

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 Average20.2x
CASY Casey's General Stores
30x8.2%US$15.3b
ACI Albertsons Companies
11.1x6.2%US$11.2b
CART Maplebear
24.6x11.9%US$11.0b
KR Kroger
15x4.7%US$42.0b
SFM Sprouts Farmers Market
40.7x11.7%US$14.3b

Price-To-Earnings vs Peers: SFM is expensive based on its Price-To-Earnings Ratio (40.7x) compared to the peer average (20.2x).

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
No more companies available in this PE range
SFM 40.7xIndustry Avg. 22.9xNo. of Companies4PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SFM is expensive based on its Price-To-Earnings Ratio (40.7x) compared to the US Consumer Retailing industry average (23.4x).

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 Ratio40.7x
Fair PE Ratio23.1x

Price-To-Earnings vs Fair Ratio: SFM is expensive based on its Price-To-Earnings Ratio (40.7x) compared to the estimated Fair Price-To-Earnings Ratio (23.1x).

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$142.75
US$134.33
-5.9%
12.2%US$165.00US$105.00n/a12
Nov ’25US$130.21
US$132.67
+1.9%
10.6%US$159.00US$105.00n/a12
Oct ’25US$110.97
US$101.33
-8.7%
12.0%US$125.00US$78.00n/a12
Sep ’25US$104.05
US$96.00
-7.7%
8.9%US$111.00US$78.00n/a10
Aug ’25US$100.76
US$96.00
-4.7%
8.9%US$111.00US$78.00n/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$26.00US$130.2111
Oct ’24US$42.80
US$35.73
-16.5%
13.2%US$43.00US$26.00US$110.9711
Sep ’24US$39.37
US$35.50
-9.8%
13.0%US$43.00US$26.00US$104.0512
Aug ’24US$38.26
US$35.33
-7.6%
12.6%US$42.00US$26.00US$100.7612
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

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

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