KR Valuation

Kroger Co

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73.550

-0.8(-1.076%)1D

Overview
Forecast
Valuation
Earnings

KR Relative Valuation

KR's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, KR is overvalued; if below, it's undervalued.

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Historical Valuation

Kroger Co (KR) is now in the Undervalued zone, suggesting that its current forward PE ratio of 15.08 is considered Undervalued compared with the five-year average of 11.92. The fair price of Kroger Co (KR) is between 74.37 to 85.51 according to relative valuation methord. Compared to the current price of 74.35 USD , Kroger Co is Undervalued By 0.03%.

Relative Value

Fair Zone

74.37-85.51

Current Price：74.35

0.03%

Undervalued

14.88

Trailing

Forward

8.36

EV/EBITDA

Kroger Co. (KR) has a current EV/EBITDA of 8.36. The 5-year average EV/EBITDA is 7.18. The thresholds are as follows: Strongly Undervalued below 6.09, Undervalued between 6.09 and 6.64, Fairly Valued between 7.73 and 6.64, Overvalued between 7.73 and 8.27, and Strongly Overvalued above 8.27. The current Forward EV/EBITDA of 8.36 falls within the Strongly Overvalued range.

14.49

EV/EBIT

Kroger Co. (KR) has a current EV/EBIT of 14.49. The 5-year average EV/EBIT is 12.33. The thresholds are as follows: Strongly Undervalued below 10.11, Undervalued between 10.11 and 11.22, Fairly Valued between 13.44 and 11.22, Overvalued between 13.44 and 14.56, and Strongly Overvalued above 14.56. The current Forward EV/EBIT of 14.49 falls within the Overvalued range.

0.33

Kroger Co. (KR) has a current PS of 0.33. The 5-year average PS is 0.24. The thresholds are as follows: Strongly Undervalued below 0.17, Undervalued between 0.17 and 0.20, Fairly Valued between 0.27 and 0.20, Overvalued between 0.27 and 0.31, and Strongly Overvalued above 0.31. The current Forward PS of 0.33 falls within the Strongly Overvalued range.

6.86

P/OCF

Kroger Co. (KR) has a current P/OCF of 6.86. The 5-year average P/OCF is 5.73. The thresholds are as follows: Strongly Undervalued below 4.25, Undervalued between 4.25 and 4.99, Fairly Valued between 6.46 and 4.99, Overvalued between 6.46 and 7.20, and Strongly Overvalued above 7.20. The current Forward P/OCF of 6.86 falls within the Overvalued range.

16.60

P/FCF

Kroger Co. (KR) has a current P/FCF of 16.60. The 5-year average P/FCF is 14.18. The thresholds are as follows: Strongly Undervalued below 8.92, Undervalued between 8.92 and 11.55, Fairly Valued between 16.81 and 11.55, Overvalued between 16.81 and 19.45, and Strongly Overvalued above 19.45. The current Forward P/FCF of 16.60 falls within the Historic Trend Line -Fairly Valued range.

Kroger Co (KR) has a current Price-to-Book (P/B) ratio of 5.52. Compared to its 3-year average P/B ratio of 3.54 , the current P/B ratio is approximately 55.59% higher. Relative to its 5-year average P/B ratio of 3.42, the current P/B ratio is about 61.17% higher. Kroger Co (KR) has a Forward Free Cash Flow (FCF) yield of approximately 3.76%. Compared to its 3-year average FCF yield of 6.05%, the current FCF yield is approximately -37.86% lower. Relative to its 5-year average FCF yield of 7.77% , the current FCF yield is about -51.67% lower.

5.44

P/B

Median3y

3.54

Median5y

3.42

3.75

FCF Yield

Median3y

6.05

Median5y

7.77

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Competitors Valuation Multiple

The average P/S ratio for KR's competitors is 0.60, providing a benchmark for relative valuation. Kroger Co Corp (KR) exhibits a P/S ratio of 0.33, which is -45.38% above the industry average. Given its robust revenue growth of -0.33%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Sprouts Farmers Market Inc

Albertsons Companies Inc

Grocery Outlet Holding Corp

Performance Decomposition

Market capitalization of KR increased by 39.66% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 13.54 to 20.18.

The secondary factor is the Revenue Growth, contributed -0.33%to the performance.

Overall, the performance of KR in the past 1 year is driven by P/E Change. Which is more unsustainable.

-0.33%

45.27B → 45.12B

Revenue Growth

-9.00%

2.11 → 1.92

Margin Expansion

48.99%

13.54 → 20.18

P/E Change

39.66%