Kroger Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 ($57.13) is trading below our estimate of fair value ($91.77)

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?

Other financial metrics that can be useful for relative valuation.

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/Revenue0.4x
Enterprise Value/EBITDA7.2x
PEG Ratio2x

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.8x
ACI Albertsons Companies
9.2x2.5%US$12.3b
CASY Casey's General Stores
25x8.3%US$11.8b
SFM Sprouts Farmers Market
25.2x5.3%US$6.5b
GO Grocery Outlet Holding
36x11.7%US$2.9b
KR Kroger
19x9.7%US$40.9b

Price-To-Earnings vs Peers: KR is good value based on its Price-To-Earnings Ratio (19x) compared to the peer average (23.8x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.9%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.9%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: KR is good value based on its Price-To-Earnings Ratio (19x) compared to the US Consumer Retailing industry average (20x).


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 Ratio19x
Fair PE Ratio26.4x

Price-To-Earnings vs Fair Ratio: KR is good value based on its Price-To-Earnings Ratio (19x) compared to the estimated Fair Price-To-Earnings Ratio (26.4x).


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.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$57.13
US$58.47
+2.4%
7.8%US$70.00US$50.00n/a20
Mar ’25US$49.16
US$51.58
+4.9%
8.8%US$65.00US$46.00n/a20
Feb ’25US$46.71
US$50.78
+8.7%
10.1%US$65.00US$42.00n/a20
Jan ’25US$45.71
US$51.07
+11.7%
10.0%US$65.00US$42.00n/a21
Dec ’24US$44.60
US$50.93
+14.2%
10.2%US$65.00US$42.00n/a20
Nov ’24US$45.39
US$51.53
+13.5%
9.8%US$65.00US$42.00n/a20
Oct ’24US$44.75
US$51.63
+15.4%
9.8%US$65.00US$42.00n/a20
Sep ’24US$45.98
US$51.67
+12.4%
9.8%US$65.00US$42.00n/a20
Aug ’24US$48.54
US$51.97
+7.1%
9.3%US$65.00US$42.00n/a20
Jul ’24US$47.00
US$51.92
+10.5%
9.3%US$65.00US$42.00n/a20
Jun ’24US$44.66
US$53.18
+19.1%
12.0%US$75.00US$42.00n/a19
May ’24US$49.28
US$53.07
+7.7%
11.9%US$75.00US$42.00n/a20
Apr ’24US$49.37
US$53.00
+7.4%
12.1%US$75.00US$42.00n/a20
Mar ’24US$43.38
US$52.63
+21.3%
13.6%US$75.00US$42.00US$49.1619
Feb ’24US$45.18
US$53.13
+17.6%
13.6%US$75.00US$42.00US$46.7119
Jan ’24US$44.58
US$53.47
+19.9%
13.4%US$75.00US$44.00US$45.7118
Dec ’23US$48.41
US$53.53
+10.6%
14.8%US$75.00US$43.00US$44.6016
Nov ’23US$47.17
US$53.85
+14.2%
14.5%US$75.00US$43.00US$45.3917
Oct ’23US$43.75
US$54.43
+24.4%
13.1%US$75.00US$43.00US$44.7522
Sep ’23US$48.61
US$54.43
+12.0%
14.2%US$75.00US$41.00US$45.9823
Aug ’23US$46.74
US$54.96
+17.6%
14.0%US$75.00US$41.00US$48.5423
Jul ’23US$48.14
US$54.56
+13.3%
14.3%US$75.00US$41.00US$47.0024
Jun ’23US$51.35
US$54.44
+6.0%
15.1%US$75.00US$38.00US$44.6624
May ’23US$53.96
US$54.19
+0.4%
15.9%US$75.00US$38.00US$49.2824
Apr ’23US$57.48
US$52.12
-9.3%
14.9%US$65.00US$38.00US$49.3725
Mar ’23US$48.35
US$45.96
-5.0%
11.7%US$56.00US$34.00US$43.3825

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


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