SFM Relative Valuation
SFM'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, SFM is overvalued; if below, it's undervalued.
Historical Valuation
Sprouts Farmers Market Inc (SFM) is now in the Fair zone, suggesting that its current forward PE ratio of 15.38 is considered Fairly compared with the five-year average of 17.99. The fair price of Sprouts Farmers Market Inc (SFM) is between 63.31 to 133.07 according to relative valuation methord.
Relative Value
Fair Zone
63.31-133.07
Current Price：85.10
Fair
15.41
PE
1Y
3Y
5Y
Trailing
Forward
11.16
EV/EBITDA
Sprouts Farmers Market Inc. (SFM) has a current EV/EBITDA of 11.16. The 5-year average EV/EBITDA is 12.56. The thresholds are as follows: Strongly Undervalued below 3.28, Undervalued between 3.28 and 7.92, Fairly Valued between 17.20 and 7.92, Overvalued between 17.20 and 21.84, and Strongly Overvalued above 21.84. The current Forward EV/EBITDA of 11.16 falls within the Historic Trend Line -Fairly Valued range.
13.71
EV/EBIT
Sprouts Farmers Market Inc. (SFM) has a current EV/EBIT of 13.71. The 5-year average EV/EBIT is 16.62. The thresholds are as follows: Strongly Undervalued below 5.71, Undervalued between 5.71 and 11.17, Fairly Valued between 22.08 and 11.17, Overvalued between 22.08 and 27.53, and Strongly Overvalued above 27.53. The current Forward EV/EBIT of 13.71 falls within the Historic Trend Line -Fairly Valued range.
0.88
PS
Sprouts Farmers Market Inc. (SFM) has a current PS of 0.88. The 5-year average PS is 0.82. The thresholds are as follows: Strongly Undervalued below -0.14, Undervalued between -0.14 and 0.34, Fairly Valued between 1.29 and 0.34, Overvalued between 1.29 and 1.77, and Strongly Overvalued above 1.77. The current Forward PS of 0.88 falls within the Historic Trend Line -Fairly Valued range.
9.67
P/OCF
Sprouts Farmers Market Inc. (SFM) has a current P/OCF of 9.67. The 5-year average P/OCF is 11.82. The thresholds are as follows: Strongly Undervalued below 0.81, Undervalued between 0.81 and 6.31, Fairly Valued between 17.32 and 6.31, Overvalued between 17.32 and 22.82, and Strongly Overvalued above 22.82. The current Forward P/OCF of 9.67 falls within the Historic Trend Line -Fairly Valued range.
15.30
P/FCF
Sprouts Farmers Market Inc. (SFM) has a current P/FCF of 15.30. The 5-year average P/FCF is 22.44. The thresholds are as follows: Strongly Undervalued below 2.69, Undervalued between 2.69 and 12.56, Fairly Valued between 32.32 and 12.56, Overvalued between 32.32 and 42.19, and Strongly Overvalued above 42.19. The current Forward P/FCF of 15.30 falls within the Historic Trend Line -Fairly Valued range.
Sprouts Farmers Market Inc (SFM) has a current Price-to-Book (P/B) ratio of 5.78. Compared to its 3-year average P/B ratio of 6.83 , the current P/B ratio is approximately -15.38% higher. Relative to its 5-year average P/B ratio of 5.33, the current P/B ratio is about 8.52% higher. Sprouts Farmers Market Inc (SFM) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.64%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 6.49% , the current FCF yield is about -100.00% lower.
5.79
P/B
Median3y
6.83
Median5y
5.33
5.52
FCF Yield
Median3y
4.64
Median5y
6.49
Competitors Valuation Multiple
The average P/S ratio for SFM's competitors is , providing a benchmark for relative valuation. Sprouts Farmers Market Inc Corp (SFM) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 13.09%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of SFM decreased by 32.91% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 4.71 to 5.46.
The secondary factor is the Revenue Growth, contributed 13.09%to the performance.
Overall, the performance of SFM in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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